LGI HOMES INC (LGIH) Stock Fundamental Analysis
NASDAQ:LGIH - Nasdaq - US50187T1060 - Common Stock - Currency: USD
LGIH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
LGIH had positive earnings in the past year.
LGIH had a negative operating cash flow in the past year.
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 5.22%. This is comparable to the rest of the industry: LGIH outperforms 53.13% of its industry peers.
LGIH has a Return On Equity (9.62%) which is in line with its industry peers.
The Return On Invested Capital of LGIH (4.51%) is comparable to the rest of the industry.
LGIH had an Average Return On Invested Capital over the past 3 years of 6.71%. This is significantly below the industry average of 11.72%.
| 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 70.31% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
With a Operating Margin value of 9.63%, LGIH perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
LGIH's Operating Margin has declined in the last couple of years.
LGIH has a Gross Margin (24.21%) which is in line with its industry peers.
LGIH's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LGIH is destroying value.
The number of shares outstanding for LGIH has been reduced compared to 1 year ago.
The number of shares outstanding for LGIH has been reduced compared to 5 years ago.
Compared to 1 year ago, LGIH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.00 indicates that LGIH is not in any danger for bankruptcy at the moment.
The Altman-Z score of LGIH (3.00) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.75 indicates that LGIH is somewhat dependend on debt financing.
The Debt to Equity ratio of LGIH (0.75) is worse than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3 |
ROIC/WACC0.48
WACC9.36%
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.
LGIH has a Current ratio of 18.30. This is amongst the best in the industry. LGIH outperforms 100.00% of its industry peers.
A Quick Ratio of 0.44 indicates that LGIH may have some problems paying its short term obligations.
LGIH has a worse Quick ratio (0.44) than 78.13% 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 1.50%.
Measured over the past 5 years, LGIH shows a small growth in Earnings Per Share. The EPS has been growing by 3.47% on average per year.
Looking at the last year, LGIH shows a decrease in Revenue. The Revenue has decreased by -6.61% 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)1.5%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-25%
Revenue 1Y (TTM)-6.61%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-10.09%
3.2 Future
Based on estimates for the next years, LGIH will show a small growth in Earnings Per Share. The EPS will grow by 3.57% on average per year.
Based on estimates for the next years, LGIH will show a quite strong growth in Revenue. The Revenue will grow by 12.50% on average per year.
EPS Next Y-25.98%
EPS Next 2Y3.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.44%
Revenue Next 2Y12.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.17, the valuation of LGIH can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of LGIH indicates a rather cheap valuation: LGIH is cheaper than 84.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, LGIH is valued rather cheaply.
LGIH is valuated cheaply with a Price/Forward Earnings ratio of 5.63.
87.50% of the companies in the same industry are more expensive than LGIH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LGIH to the average of the S&P500 Index (22.15), we can say LGIH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.17 | ||
| Fwd PE | 5.63 |
4.2 Price Multiples
LGIH's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y3.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LGIH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.1
-0.6 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change1.21%
Ins Owners12.42%
Ins Owner Change0.49%
Market Cap1.17B
Analysts50.91
Price Target110.5 (120.56%)
Short Float %12.56%
Short Ratio7.3
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)-4.41%
PT rev (3m)-9.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-51.9%
EPS NY rev (1m)-18.3%
EPS NY rev (3m)-40.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-24.64%
Revenue NY rev (1m)-3.42%
Revenue NY rev (3m)-18.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.17 | ||
| Fwd PE | 5.63 | ||
| P/S | 0.53 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.58 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)8.12
EY16.21%
EPS(NY)8.9
Fwd EY17.77%
FCF(TTM)-6.23
FCFYN/A
OCF(TTM)-6.14
OCFYN/A
SpS94.13
BVpS87.06
TBVpS86.55
PEG (NY)N/A
PEG (5Y)1.78
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 |
F-Score4
WACC9.36%
ROIC/WACC0.48
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)1.5%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-25%
EPS Next Y-25.98%
EPS Next 2Y3.57%
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 Year0.44%
Revenue Next 2Y12.5%
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 Year-7.77%
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