Too Cheap to IgnoreGiven the margin compression of the industry MRE is trading too cheaply relative to its peers especially given its growth rate to ignore.
Forward P/E – 5.9x (MG – 8.3x, LNR – 7.2x)
Price/Sales - 0.2x (MG – 0.5, LNR – 0.7x)
Just putting MRE on a 7.5x P/E puts it at 11.8 SP. In a bullish case mean reversion back to the 5 year average P/E multiple for MRE puts you on a 8.2x P/E which gives you a 12.9 SP which is a massive discount to todays price.
CEO and CFO continue to add shares to their holdings so will I into earnings.
Too cheap, Long