LGI HOMES INC (LGIH) Stock Fundamental Analysis
NASDAQ:LGIH - Nasdaq - US50187T1060 - Common Stock - Currency: USD
Taking everything into account, LGIH scores 4 out of 10 in our fundamental rating. LGIH was compared to 64 industry peers in the Household Durables industry. The financial health of LGIH is average, but there are quite some concerns on its profitability. LGIH is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years LGIH has always been profitable.
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
Looking at the Return On Assets, with a value of 5.22%, LGIH is in line with its industry, outperforming 51.56% of the companies in the same industry.
LGIH has a Return On Equity (9.62%) which is in line with its industry peers.
With a Return On Invested Capital value of 4.51%, LGIH perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LGIH is significantly below the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.62% | ||
| ROIC | 4.51% |
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
The Profit Margin of LGIH (8.90%) is better than 71.88% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
LGIH has a Operating Margin (9.63%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LGIH has declined.
LGIH has a Gross Margin of 24.21%. This is comparable to the rest of the industry: LGIH outperforms 42.19% 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 | 9.63% | ||
| PM (TTM) | 8.9% | ||
| GM | 24.21% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
The debt/assets ratio for LGIH is higher compared to a year ago.
2.2 Solvency
LGIH has an Altman-Z score of 3.03. This indicates that LGIH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.03, LGIH is in line with its industry, outperforming 57.81% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that LGIH is somewhat dependend on debt financing.
LGIH has a Debt to Equity ratio of 0.75. This is in the lower half of the industry: LGIH underperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.03 |
ROIC/WACC0.5
WACC8.96%
2.3 Liquidity
LGIH has a Current Ratio of 18.30. This indicates that LGIH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 18.30, LGIH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LGIH has a Quick Ratio of 18.30. This is a bad value and indicates that LGIH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LGIH (0.44) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 18.3 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
LGIH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.50%.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
LGIH shows a decrease in Revenue. In the last year, the revenue decreased by -6.61%.
The Revenue has been growing slightly by 3.68% on average over the past years.
EPS 1Y (TTM)0.5%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-36.11%
Revenue 1Y (TTM)-6.61%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-10.09%
3.2 Future
The Earnings Per Share is expected to grow by 9.00% on average over the next years. This is quite good.
LGIH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.43% yearly.
EPS Next Y-9.4%
EPS Next 2Y9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.99%
Revenue Next 2Y13.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 6.85, the valuation of LGIH can be described as very cheap.
Based on the Price/Earnings ratio, LGIH is valued a bit cheaper than 76.56% of the companies in the same industry.
LGIH is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.59 indicates a rather cheap valuation of LGIH.
Based on the Price/Forward Earnings ratio, LGIH is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, LGIH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 5.59 |
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 60.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LGIH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.09
+1.91 (+3.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change-0.2%
Ins Owners12.42%
Ins Owner Change0.49%
Market Cap1.29B
Analysts50.91
Price Target115.6 (109.84%)
Short Float %12.06%
Short Ratio7.26
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)1
Avg EPS beat(2)5.37%
Min EPS beat(2)-3.19%
Max EPS beat(2)13.94%
EPS beat(4)2
Avg EPS beat(4)-2.71%
Min EPS beat(4)-33.37%
Max EPS beat(4)13.94%
EPS beat(8)4
Avg EPS beat(8)1.31%
EPS beat(12)7
Avg EPS beat(12)3.27%
EPS beat(16)11
Avg EPS beat(16)7.38%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-7.15%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-4.5%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-1.14%
Revenue beat(8)1
Avg Revenue beat(8)-3.5%
Revenue beat(12)2
Avg Revenue beat(12)-3.93%
Revenue beat(16)6
Avg Revenue beat(16)-1.56%
PT rev (1m)0%
PT rev (3m)-5.56%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-55.15%
EPS NY rev (1m)-4.71%
EPS NY rev (3m)-30.19%
Revenue NQ rev (1m)-3.38%
Revenue NQ rev (3m)-23.39%
Revenue NY rev (1m)-3.11%
Revenue NY rev (3m)-16.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 5.59 | ||
| P/S | 0.59 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.63 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 12.79 |
EPS(TTM)8.04
EY14.59%
EPS(NY)9.86
Fwd EY17.9%
FCF(TTM)-6.23
FCFYN/A
OCF(TTM)-6.14
OCFYN/A
SpS94.13
BVpS87.06
TBVpS86.55
PEG (NY)N/A
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.62% | ||
| ROCE | 5.94% | ||
| ROIC | 4.51% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 4.83% | ||
| OM | 9.63% | ||
| PM (TTM) | 8.9% | ||
| GM | 24.21% | ||
| 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-Score4
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.05 | ||
| Cap/Depr | 62.81% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 1.88 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 18.3 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.03 |
F-Score4
WACC8.96%
ROIC/WACC0.5
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)0.5%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-36.11%
EPS Next Y-9.4%
EPS Next 2Y9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.61%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-10.09%
Revenue Next Year3.99%
Revenue Next 2Y13.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.08%
EBIT growth 3Y-27.11%
EBIT growth 5Y-1.4%
EBIT Next Year14.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-149.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-152.31%
OCF growth 3YN/A
OCF growth 5YN/A