7 Cheap Small-Cap Stocks To Buy Now

2. M/I Homes, Inc. (NYSE:MHO)

PE Ratio (FWD): 8.61

Number of Hedge Fund Holders: 45

M/I Homes, Inc. (NYSE:MHO) is a major player in the American homebuilding industry for over four decades, constructing more than 150,000 homes in 17 different markets. Since 1976, the company has grown into a top builder of both single-family homes and townhomes. Its product lineup caters to a variety of homebuyers, from those purchasing their first homes to luxury buyers and retirees.

The company offers a full range of services beyond home construction, including financing, title insurance, and closing assistance. It prioritizes energy efficiency and sustainability, using durable materials and reliable appliances. Its commitment to quality can be seen by its multiple warranty protections for homeowners, which ensures long-lasting homes and peace of mind for buyers.

M/I Homes’ (NYSE:MHO) 1-year warranty covers workmanship and material defects, while a 2-year warranty addresses issues with plumbing, electrical, heating, and air conditioning systems.

The 10-year habitability warranty guarantees repairs for any defects making the home unsafe to live in, and the company’s industry-leading 10-year Transferable Structural Warranty covers major structural deficiencies. Additionally, homeowners benefit from manufacturers’ warranties on all high-quality components used in the home.

Along with being one of the cheapest small-cap stocks to buy, M/I Homes (NYSE:MHO) is fundamentally strong and is in a great financial position. As of Q2, it has $2.7 billion in equity, over $800 million in cash, and no outstanding borrowings under its $650 million credit facility. In addition, its debt-to-capital ratio of 20% and a net debt-to-capital ratio of -6% show a conservative capital structure, which provides financial flexibility for expansion or shareholder returns.