MHO · NYSE · Operative Builders
$123.62 · $3.4B market value · fiscal year to 31 Dec 2025
Live from the latest filings
6 of 10
Buffett tests pass
Margin of safety 76%
Bear
$301.72
Base
$509.36
Bull
$801.40
Price $123.62
The price is below even the bear case.
6 pass · 4 mixed · 0 fail · 0 can't tell
Return on equity averaged 18%, reaching 15% in 5 of the years measured; the weakest year was 9.1%.
Why this testDebt isn't reported in the filings, so payback can't be measured. Operating income covers interest 616×, which suggests debt is modest.
Why this testNormalised owner earnings are $474.6M, and free cash flow has averaged 26% of reported profit.
Why this testEach dollar retained over the period has been matched by 0.9× of market value created ($2.9B retained in total).
Why this testNo loss years across 15 years of filings, with operating margin varying by 3.7% around its average.
Why this testAfter-tax return on invested capital averaged 20% over 10 years and was 16% in the latest year.
Why this testCapital spending has averaged 0.6× depreciation; estimated maintenance capex was $9.6M last year.
Why this testThe diluted share count has changed by -1.1% a year. Shrinking means buybacks are returning value; growing means owners are being diluted.
Why this testAt $123.62, the price is 76% below the base-case value of $509.36 (the bear case is $301.72). The standard lens asks for a 25% margin.
Why this testThe owner-earnings yield is 14% against a 10-year Treasury yield of 5.2%.
Why this testDiscounted owner earnings
Bear
$301.72
Base
$509.36
Bull
$801.40
Price $123.62
The price is below even the bear case.
| Scenario | Starting owner earnings | Growth (yrs 1–5) | Terminal | Discount | Value / share |
|---|---|---|---|---|---|
| bear | $474.6M | 6.0% | 1.5% | 9.7% | $301.72 |
| base | $474.6M | 10.0% | 2.5% | 8.2% | $509.36 |
| bull | $474.6M | 13.0% | 3.0% | 7.2% | $801.40 |
How sensitive is that?
| Discount ↓ / Growth → | 6.0% | 8.0% | 10.0% | 12.0% | 14.0% |
|---|---|---|---|---|---|
| 6.2% | $628 | $705 | $791 | $886 |
Fiscal year to 31 Dec 2025
Replicly is a research and education tool. It is not financial advice and does not recommend that you buy or sell any investment. Analyses apply Buffett-inspired principles to public data and can be wrong. Warren Buffett and Berkshire Hathaway are not affiliated with and do not endorse Replicly. Capital is at risk.
| $993 |
| 7.1% | $496 | $555 | $620 | $692 | $773 |
|---|
| 8.2% | $411 | $457 | $509 | $567 | $631 |
|---|
| 9.2% | $351 | $390 | $432 | $480 | $532 |
|---|
| 10.2% | $307 | $340 | $376 | $416 | $460 |
|---|
Green: at least 25% above the price. Amber: above it. Red: below it. n/a means the discount rate is at or below growth, where the model has no finite answer. The corners combine the most extreme assumptions, so treat them as bounds.
Discount rate: 10-year Treasury (5.2%) plus a 3% equity hurdle. Price $123.62 on 20 Oct 2026. End-of-day prices from free public sources, may be delayed or missing.
Revenue
$4.4B
Revenue growth (CAGR)
11%
Operating margin (avg)
11%
Return on equity (avg)
18%
ROIC (avg)
20%
Normalised owner earnings
$474.6M
Cash conversion
26%
Net cash
$689.2M
Debt payback
n/a
Share count change (CAGR)
-1.1%
Price / earnings
8.4×
Owner earnings yield
14%
Missing from the filings: debt.