LGI HOMES INC (LGIH)
US50187T1060 - Common Stock
Overall LGIH gets a fundamental rating of 4 out of 10. We evaluated LGIH against 67 industry peers in the Household Durables industry. LGIH has an average financial health and profitability rating. LGIH has a correct valuation and a medium growth rate.
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.
In the past 5 years LGIH has always been profitable.
In multiple years LGIH reported negative operating cash flow during the last 5 years.
1.2 Ratios
LGIH has a Return On Assets of 5.37%. This is comparable to the rest of the industry: LGIH outperforms 50.00% of its industry peers.
LGIH has a Return On Equity (10.12%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.21%, LGIH perfoms like the industry average, outperforming 43.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LGIH is in line with the industry average of 10.04%.
The 3 year average ROIC (11.66%) for LGIH is well above the current ROIC(5.21%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 10.12% | ||
| ROIC | 5.21% |
ROA(3y)11.52%
ROA(5y)12.6%
ROE(3y)20.47%
ROE(5y)22.19%
ROIC(3y)11.66%
ROIC(5y)12.6%
1.3 Margins
The Profit Margin of LGIH (8.37%) is better than 65.15% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
The Operating Margin of LGIH (9.99%) is better than 60.61% of its industry peers.
LGIH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.64%, LGIH is doing worse than 63.64% of the companies in the same industry.
In the last couple of years the Gross Margin of LGIH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.99% | ||
| PM (TTM) | 8.37% | ||
| GM | 23.64% |
OM growth 3Y-13.73%
OM growth 5Y-5.83%
PM growth 3Y-14.84%
PM growth 5Y-3.93%
GM growth 3Y-3.36%
GM growth 5Y-1.86%
2. Health
2.1 Basic Checks
LGIH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LGIH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LGIH has been increased compared to 5 years ago.
Compared to 1 year ago, LGIH has an improved debt to assets ratio.
2.2 Solvency
LGIH has an Altman-Z score of 3.49. This indicates that LGIH is financially healthy and has little risk of bankruptcy at the moment.
LGIH has a Altman-Z score of 3.49. This is comparable to the rest of the industry: LGIH outperforms 54.55% of its industry peers.
LGIH has a Debt/Equity ratio of 0.78. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, LGIH is not doing good in the industry: 71.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.49 |
ROIC/WACC0.51
WACC10.24%
2.3 Liquidity
A Current Ratio of 18.13 indicates that LGIH has no problem at all paying its short term obligations.
LGIH's Current ratio of 18.13 is amongst the best of the industry. LGIH outperforms 100.00% of its industry peers.
LGIH has a Quick Ratio of 18.13. This is a bad value and indicates that LGIH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.43, LGIH is doing worse than 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 18.13 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for LGIH have decreased strongly by -31.27% in the last year.
LGIH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.18% yearly.
The Revenue has been growing slightly by 0.72% in the past year.
Measured over the past years, LGIH shows a quite strong growth in Revenue. The Revenue has been growing by 9.41% on average per year.
EPS 1Y (TTM)-31.27%
EPS 3Y-10.31%
EPS 5Y6.18%
EPS growth Q2Q-36.84%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y-0.13%
Revenue growth 5Y9.41%
Revenue growth Q2Q-19.81%
3.2 Future
LGIH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.62% yearly.
The Revenue is expected to grow by 17.82% on average over the next years. This is quite good.
EPS Next Y12.92%
EPS Next 2Y19.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.89%
Revenue Next 2Y17.82%
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
LGIH is valuated correctly with a Price/Earnings ratio of 12.21.
The rest of the industry has a similar Price/Earnings ratio as LGIH.
LGIH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.02.
Based on the Price/Forward Earnings ratio of 8.11, the valuation of LGIH can be described as reasonable.
Based on the Price/Forward Earnings ratio, LGIH is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.58. LGIH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 8.11 |
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 65.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.26 |
4.3 Compensation for Growth
LGIH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LGIH's earnings are expected to grow with 19.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)1.98
EPS Next 2Y19.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LGIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LGI HOMES INC
NASDAQ:LGIH (5/6/2024, 7:11:56 PM)
After market: 97.69 0 (0%)97.69
+0.96 (+0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 8.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.95
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 10.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.99% | ||
| PM (TTM) | 8.37% | ||
| GM | 23.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 18.13 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-31.27%
EPS 3Y-10.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.72%
Revenue growth 3Y-0.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y