LGI HOMES INC (LGIH) Stock Fundamental Analysis
NASDAQ:LGIH - US50187T1060 - Common Stock
61.91 USD
-0.63 (-1.01%)
61.91 USD
0 (0%)
Overall LGIH gets a fundamental rating of 3 out of 10. We evaluated LGIH against 63 industry peers in the Household Durables industry. LGIH may be in some trouble as it scores bad on both profitability and health. LGIH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LGIH was profitable.
In the past year LGIH has reported a negative cash flow from operations.
LGIH had positive earnings in each of the past 5 years.
In multiple years LGIH reported negative operating cash flow during the last 5 years.
1.2 Ratios
LGIH has a Return On Assets of 3.89%. This is comparable to the rest of the industry: LGIH outperforms 53.97% of its industry peers.
LGIH's Return On Equity of 7.58% is in line compared to the rest of the industry. LGIH outperforms 47.62% of its industry peers.
LGIH's Return On Invested Capital of 3.28% is on the low side compared to the rest of the industry. LGIH is outperformed by 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LGIH is below the industry average of 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.58% | ||
| ROIC | 3.28% |
ROA(3y)7.17%
ROA(5y)11.5%
ROE(3y)13.41%
ROE(5y)19.89%
ROIC(3y)6.71%
ROIC(5y)11.08%
1.3 Margins
LGIH's Profit Margin of 7.63% is fine compared to the rest of the industry. LGIH outperforms 65.08% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
LGIH has a Operating Margin (8.10%) which is comparable to the rest of the industry.
LGIH's Operating Margin has declined in the last couple of years.
The Gross Margin of LGIH (23.25%) is worse than 63.49% of its industry peers.
In the last couple of years the Gross Margin of LGIH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 7.63% | ||
| GM | 23.25% |
OM growth 3Y-18.75%
OM growth 5Y-4.9%
PM growth 3Y-14.18%
PM growth 5Y-1.74%
GM growth 3Y-3.35%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LGIH is destroying value.
Compared to 1 year ago, LGIH has less shares outstanding
Compared to 5 years ago, LGIH has less shares outstanding
The debt/assets ratio for LGIH is higher compared to a year ago.
2.2 Solvency
LGIH has an Altman-Z score of 2.90. This is not the best score and indicates that LGIH is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.90, LGIH is in line with its industry, outperforming 52.38% of the companies in the same industry.
LGIH has a Debt/Equity ratio of 0.86. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
LGIH has a worse Debt to Equity ratio (0.86) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.9 |
ROIC/WACC0.36
WACC9.23%
2.3 Liquidity
A Current Ratio of 21.95 indicates that LGIH has no problem at all paying its short term obligations.
LGIH has a better Current ratio (21.95) than 100.00% of its industry peers.
A Quick Ratio of 0.55 indicates that LGIH may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, LGIH is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.95 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for LGIH have decreased strongly by -14.95% in the last year.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
The Revenue has decreased by -7.89% in the past year.
LGIH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.68% yearly.
EPS 1Y (TTM)-14.95%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-45.16%
Revenue 1Y (TTM)-7.89%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-19.75%
3.2 Future
Based on estimates for the next years, LGIH will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.71% on average per year.
The Revenue is expected to decrease by -1.70% on average over the next years.
EPS Next Y-51.85%
EPS Next 2Y-18.99%
EPS Next 3Y-11.71%
EPS Next 5YN/A
Revenue Next Year-21.16%
Revenue Next 2Y-4.49%
Revenue Next 3Y-1.7%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.84 indicates a reasonable valuation of LGIH.
Based on the Price/Earnings ratio, LGIH is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. LGIH is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.37, the valuation of LGIH can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LGIH indicates a somewhat cheap valuation: LGIH is cheaper than 68.25% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LGIH to the average of the S&P500 Index (22.72), we can say LGIH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LGIH indicates a slightly more expensive valuation: LGIH is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.58 |
4.3 Compensation for Growth
LGIH's earnings are expected to decrease with -11.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.55
EPS Next 2Y-18.99%
EPS Next 3Y-11.71%
5. Dividend
5.1 Amount
LGIH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.91
-0.63 (-1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.43%
Inst Owner Change5.46%
Ins Owners12.27%
Ins Owner Change-0.08%
Market Cap1.43B
Analysts50.91
Price Target80.33 (29.75%)
Short Float %16.1%
Short Ratio8.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.96%
Min EPS beat(2)-16.15%
Max EPS beat(2)-3.76%
EPS beat(4)1
Avg EPS beat(4)-2.29%
Min EPS beat(4)-16.15%
Max EPS beat(4)13.94%
EPS beat(8)3
Avg EPS beat(8)-2.34%
EPS beat(12)5
Avg EPS beat(12)-1.4%
EPS beat(16)9
Avg EPS beat(16)1.6%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-5.98%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-4.58%
Revenue beat(12)1
Avg Revenue beat(12)-4.59%
Revenue beat(16)4
Avg Revenue beat(16)-3.1%
PT rev (1m)-15.78%
PT rev (3m)-27.31%
EPS NQ rev (1m)-43.7%
EPS NQ rev (3m)-54.74%
EPS NY rev (1m)-28.21%
EPS NY rev (3m)-34.95%
Revenue NQ rev (1m)-28.81%
Revenue NQ rev (3m)-37.9%
Revenue NY rev (1m)-17.69%
Revenue NY rev (3m)-21.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 11.37 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.69 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 18.58 |
EPS(TTM)7
EY11.31%
EPS(NY)5.45
Fwd EY8.8%
FCF(TTM)-7.63
FCFYN/A
OCF(TTM)-7.56
OCFYN/A
SpS88.65
BVpS89.21
TBVpS88.69
PEG (NY)N/A
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.58% | ||
| ROCE | 4.32% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.44% | ||
| OM | 8.1% | ||
| PM (TTM) | 7.63% | ||
| GM | 23.25% | ||
| FCFM | N/A |
ROA(3y)7.17%
ROA(5y)11.5%
ROE(3y)13.41%
ROE(5y)19.89%
ROIC(3y)6.71%
ROIC(5y)11.08%
ROICexc(3y)6.8%
ROICexc(5y)11.29%
ROICexgc(3y)7.08%
ROICexgc(5y)11.73%
ROCE(3y)8.84%
ROCE(5y)14.59%
ROICexcg growth 3Y-37.81%
ROICexcg growth 5Y-16.06%
ROICexc growth 3Y-38.04%
ROICexc growth 5Y-16.69%
OM growth 3Y-18.75%
OM growth 5Y-4.9%
PM growth 3Y-14.18%
PM growth 5Y-1.74%
GM growth 3Y-3.35%
GM growth 5Y0.39%
F-Score3
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.41 | ||
| Cap/Depr | 44.04% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 21.95 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.9 |
F-Score3
WACC9.23%
ROIC/WACC0.36
Cap/Depr(3y)65.91%
Cap/Depr(5y)145.02%
Cap/Sales(3y)0.07%
Cap/Sales(5y)0.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.95%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-45.16%
EPS Next Y-51.85%
EPS Next 2Y-18.99%
EPS Next 3Y-11.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.89%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-19.75%
Revenue Next Year-21.16%
Revenue Next 2Y-4.49%
Revenue Next 3Y-1.7%
Revenue Next 5YN/A
EBIT growth 1Y-27.46%
EBIT growth 3Y-27.11%
EBIT growth 5Y-1.4%
EBIT Next Year-12.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1080.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1110.26%
OCF growth 3YN/A
OCF growth 5YN/A