53.28 USD
+6.51 (+13.92%)
53.28 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to LGIH. LGIH was compared to 60 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
LGIH had positive earnings in the past year.
In the past year LGIH has reported a negative cash flow from operations.
LGIH had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: LGIH reported negative operating cash flow in multiple years.
1.2 Ratios
LGIH has a Return On Assets (2.65%) which is comparable to the rest of the industry.
LGIH has a Return On Equity (5.15%) which is in line with its industry peers.
LGIH's Return On Invested Capital of 2.10% is on the low side compared to the rest of the industry. LGIH is outperformed by 68.33% of its industry peers.
LGIH had an Average Return On Invested Capital over the past 3 years of 6.70%. This is below the industry average of 9.69%.
The 3 year average ROIC (6.70%) for LGIH is well above the current ROIC(2.10%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 5.15% | ||
| ROIC | 2.1% |
ROA(3y)7.17%
ROA(5y)11.5%
ROE(3y)13.41%
ROE(5y)19.89%
ROIC(3y)6.7%
ROIC(5y)11.06%
1.3 Margins
Looking at the Profit Margin, with a value of 5.98%, LGIH is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
LGIH's Profit Margin has declined in the last couple of years.
LGIH has a Operating Margin of 5.99%. This is comparable to the rest of the industry: LGIH outperforms 41.67% of its industry peers.
In the last couple of years the Operating Margin of LGIH has declined.
LGIH has a Gross Margin of 22.19%. This is in the lower half of the industry: LGIH underperforms 70.00% of its industry peers.
LGIH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 5.98% | ||
| GM | 22.19% |
OM growth 3Y-18.77%
OM growth 5Y-4.91%
PM growth 3Y-14.19%
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.
LGIH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LGIH has less shares outstanding
LGIH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LGIH (2.66) is worse than 60.00% of its industry peers.
LGIH has a Debt/Equity ratio of 0.85. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
LGIH has a Debt to Equity ratio of 0.85. This is in the lower half of the industry: LGIH underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC0.22
WACC9.35%
2.3 Liquidity
A Current Ratio of 21.56 indicates that LGIH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 21.56, LGIH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LGIH has a Quick Ratio of 21.56. This is a bad value and indicates that LGIH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.48, LGIH is not doing good in the industry: 78.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.56 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for LGIH have decreased strongly by -41.25% in the last year.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
Looking at the last year, LGIH shows a very negative growth in Revenue. The Revenue has decreased by -20.62% in the last 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)-41.25%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-71.19%
Revenue 1Y (TTM)-20.62%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-39.15%
3.2 Future
LGIH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.06% yearly.
Based on estimates for the next years, LGIH will show a small growth in Revenue. The Revenue will grow by 6.93% on average per year.
EPS Next Y-57.88%
EPS Next 2Y-26.23%
EPS Next 3Y-4.06%
EPS Next 5YN/A
Revenue Next Year-22.65%
Revenue Next 2Y-4.24%
Revenue Next 3Y6.93%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.87, the valuation of LGIH can be described as reasonable.
Based on the Price/Earnings ratio, LGIH is valued a bit cheaper than the industry average as 71.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.00. LGIH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.80 indicates a reasonable valuation of LGIH.
Based on the Price/Forward Earnings ratio, LGIH is valued a bit cheaper than the industry average as 78.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.70. LGIH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LGIH is valued a bit more expensive than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.06 |
4.3 Compensation for Growth
LGIH's earnings are expected to decrease with -4.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.14
EPS Next 2Y-26.23%
EPS Next 3Y-4.06%
5. Dividend
5.1 Amount
No dividends for LGIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
53.28
+6.51 (+13.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners90.74%
Inst Owner Change0%
Ins Owners12.52%
Ins Owner Change0.5%
Market Cap1.23B
Revenue(TTM)1.79B
Net Income(TTM)106.99M
Analysts73.33
Price Target74.46 (39.75%)
Short Float %14.59%
Short Ratio8.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-7.04%
Min EPS beat(2)-10.33%
Max EPS beat(2)-3.76%
EPS beat(4)0
Avg EPS beat(4)-8.36%
Min EPS beat(4)-16.15%
Max EPS beat(4)-3.19%
EPS beat(8)2
Avg EPS beat(8)-7.08%
EPS beat(12)4
Avg EPS beat(12)-2.91%
EPS beat(16)8
Avg EPS beat(16)0.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-3.48%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-0.07%
Revenue beat(8)0
Avg Revenue beat(8)-4.2%
Revenue beat(12)1
Avg Revenue beat(12)-3.71%
Revenue beat(16)3
Avg Revenue beat(16)-3.14%
PT rev (1m)-2.28%
PT rev (3m)-10.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.41%
EPS NY rev (1m)-1.44%
EPS NY rev (3m)-11.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 11.8 | ||
| P/S | 0.69 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.59 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 25.06 |
EPS(TTM)4.9
EY9.2%
EPS(NY)4.52
Fwd EY8.48%
FCF(TTM)-7.43
FCFYN/A
OCF(TTM)-7.37
OCFYN/A
SpS77.51
BVpS90.12
TBVpS89.6
PEG (NY)N/A
PEG (5Y)3.14
Graham Number99.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 5.15% | ||
| ROCE | 2.77% | ||
| ROIC | 2.1% | ||
| ROICexc | 2.13% | ||
| ROICexgc | 2.23% | ||
| OM | 5.99% | ||
| PM (TTM) | 5.98% | ||
| GM | 22.19% | ||
| FCFM | N/A |
ROA(3y)7.17%
ROA(5y)11.5%
ROE(3y)13.41%
ROE(5y)19.89%
ROIC(3y)6.7%
ROIC(5y)11.06%
ROICexc(3y)6.79%
ROICexc(5y)11.27%
ROICexgc(3y)7.07%
ROICexgc(5y)11.71%
ROCE(3y)8.84%
ROCE(5y)14.59%
ROICexgc growth 3Y-37.83%
ROICexgc growth 5Y-16.08%
ROICexc growth 3Y-38.06%
ROICexc growth 5Y-16.7%
OM growth 3Y-18.77%
OM growth 5Y-4.91%
PM growth 3Y-14.19%
PM growth 5Y-1.74%
GM growth 3Y-3.35%
GM growth 5Y0.39%
F-Score3
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 15.89 | ||
| Cap/Depr | 39.18% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 0.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 21.56 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 2.66 |
F-Score3
WACC9.35%
ROIC/WACC0.22
Cap/Depr(3y)65.82%
Cap/Depr(5y)144.97%
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)-41.25%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-71.19%
EPS Next Y-57.88%
EPS Next 2Y-26.23%
EPS Next 3Y-4.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.62%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-39.15%
Revenue Next Year-22.65%
Revenue Next 2Y-4.24%
Revenue Next 3Y6.93%
Revenue Next 5YN/A
EBIT growth 1Y-52.6%
EBIT growth 3Y-27.12%
EBIT growth 5Y-1.41%
EBIT Next Year-42.2%
EBIT Next 3Y-5.22%
EBIT Next 5YN/A
FCF growth 1Y-397.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-405.95%
OCF growth 3YN/A
OCF growth 5YN/A
LGI HOMES INC / LGIH FAQ
What is the fundamental rating for LGIH stock?
ChartMill assigns a fundamental rating of 3 / 10 to LGIH.
What is the valuation status for LGIH stock?
ChartMill assigns a valuation rating of 4 / 10 to LGI HOMES INC (LGIH). This can be considered as Fairly Valued.
Can you provide the profitability details for LGI HOMES INC?
LGI HOMES INC (LGIH) has a profitability rating of 3 / 10.
What is the earnings growth outlook for LGI HOMES INC?
The Earnings per Share (EPS) of LGI HOMES INC (LGIH) is expected to decline by -57.88% in the next year.
How sustainable is the dividend of LGI HOMES INC (LGIH) stock?
The dividend rating of LGI HOMES INC (LGIH) is 0 / 10 and the dividend payout ratio is 0%.