LGI HOMES INC (LGIH) Fundamental Analysis & Valuation

NASDAQ:LGIH • US50187T1060

Current stock price

45.32 USD
-0.17 (-0.37%)
At close:
45.1 USD
-0.22 (-0.49%)
After Hours:

This LGIH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. LGIH Profitability Analysis

1.1 Basic Checks

  • In the past year LGIH was profitable.
  • In the past year LGIH has reported a negative cash flow from operations.
  • Each year in the past 5 years LGIH has been profitable.
  • LGIH had negative operating cash flow in 4 of the past 5 years.
LGIH Yearly Net Income VS EBIT VS OCF VS FCFLGIH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 1.85%, LGIH is in line with its industry, outperforming 41.67% of the companies in the same industry.
  • LGIH has a Return On Equity of 3.46%. This is in the lower half of the industry: LGIH underperforms 60.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.57%, LGIH is doing worse than 70.00% 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 8.88%.
Industry RankSector Rank
ROA 1.85%
ROE 3.46%
ROIC 1.57%
ROA(3y)4.3%
ROA(5y)8.33%
ROE(3y)7.94%
ROE(5y)14.9%
ROIC(3y)3.81%
ROIC(5y)7.98%
LGIH Yearly ROA, ROE, ROICLGIH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • LGIH has a Profit Margin (4.25%) which is comparable to the rest of the industry.
  • LGIH's Profit Margin has declined in the last couple of years.
  • LGIH has a worse Operating Margin (4.68%) than 61.67% of its industry peers.
  • In the last couple of years the Operating Margin of LGIH has declined.
  • Looking at the Gross Margin, with a value of 20.73%, LGIH is doing worse than 71.67% of the companies in the same industry.
  • In the last couple of years the Gross Margin of LGIH has declined.
Industry RankSector Rank
OM 4.68%
PM (TTM) 4.25%
GM 20.73%
OM growth 3Y-34.87%
OM growth 5Y-21.21%
PM growth 3Y-33.04%
PM growth 5Y-20.83%
GM growth 3Y-9.6%
GM growth 5Y-4.03%
LGIH Yearly Profit, Operating, Gross MarginsLGIH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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3

2. LGIH Health Analysis

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.
  • Compared to 5 years ago, LGIH has less shares outstanding
  • LGIH has a worse debt/assets ratio than last year.
LGIH Yearly Shares OutstandingLGIH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
LGIH Yearly Total Debt VS Total AssetsLGIH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 2.67 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • LGIH's Altman-Z score of 2.67 is in line compared to the rest of the industry. LGIH outperforms 45.00% of its industry peers.
  • LGIH has a Debt/Equity ratio of 0.79. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.79, LGIH is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF N/A
Altman-Z 2.67
ROIC/WACC0.16
WACC9.73%
LGIH Yearly LT Debt VS Equity VS FCFLGIH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • LGIH has a Current Ratio of 25.19. This indicates that LGIH is financially healthy and has no problem in meeting its short term obligations.
  • LGIH's Current ratio of 25.19 is amongst the best of the industry. LGIH outperforms 100.00% of its industry peers.
  • A Quick Ratio of 0.65 indicates that LGIH may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.65, LGIH is doing worse than 70.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 25.19
Quick Ratio 0.65
LGIH Yearly Current Assets VS Current LiabilitesLGIH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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3

3. LGIH Growth Analysis

3.1 Past

  • LGIH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.18%.
  • LGIH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.44% yearly.
  • Looking at the last year, LGIH shows a very negative growth in Revenue. The Revenue has decreased by -22.57% in the last year.
  • The Revenue has been decreasing by -6.35% on average over the past years.
EPS 1Y (TTM)-55.18%
EPS 3Y-35.32%
EPS 5Y-20.44%
EPS Q2Q%-54.88%
Revenue 1Y (TTM)-22.57%
Revenue growth 3Y-9.55%
Revenue growth 5Y-6.35%
Sales Q2Q%-14.97%

3.2 Future

  • The Earnings Per Share is expected to decrease by -4.27% on average over the next years.
  • Based on estimates for the next years, LGIH will show a quite strong growth in Revenue. The Revenue will grow by 8.57% on average per year.
EPS Next Y-30.66%
EPS Next 2Y-4.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.06%
Revenue Next 2Y8.57%
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 accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
LGIH Yearly Revenue VS EstimatesLGIH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
LGIH Yearly EPS VS EstimatesLGIH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15

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2

4. LGIH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.18, which indicates a correct valuation of LGIH.
  • Based on the Price/Earnings ratio, LGIH is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.35. LGIH is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 17.57 indicates a rather expensive valuation of LGIH.
  • The rest of the industry has a similar Price/Forward Earnings ratio as LGIH.
  • The average S&P500 Price/Forward Earnings ratio is at 22.23. LGIH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.18
Fwd PE 17.57
LGIH Price Earnings VS Forward Price EarningsLGIH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 75.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 31.58
LGIH Per share dataLGIH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • A cheap valuation may be justified as LGIH's earnings are expected to decrease with -4.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.27%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LGIH Dividend Analysis

5.1 Amount

  • LGIH does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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LGIH Fundamentals: All Metrics, Ratios and Statistics

LGI HOMES INC

NASDAQ:LGIH (4/27/2026, 8:00:03 PM)

After market: 45.1 -0.22 (-0.49%)

45.32

-0.17 (-0.37%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-17
Earnings (Next)04-28
Inst Owners88.88%
Inst Owner Change-2.64%
Ins Owners12.66%
Ins Owner Change0.66%
Market Cap1.05B
Revenue(TTM)1.71B
Net Income(TTM)72.55M
Analysts76
Price Target86.02 (89.81%)
Short Float %13.53%
Short Ratio5.58
Dividend
Industry RankSector 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)-5.63%
Min EPS beat(2)-10.33%
Max EPS beat(2)-0.94%
EPS beat(4)0
Avg EPS beat(4)-7.8%
Min EPS beat(4)-16.15%
Max EPS beat(4)-0.94%
EPS beat(8)2
Avg EPS beat(8)-5.25%
EPS beat(12)4
Avg EPS beat(12)-1.73%
EPS beat(16)7
Avg EPS beat(16)0.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-2.51%
Min Revenue beat(4)-5.98%
Max Revenue beat(4)-0.07%
Revenue beat(8)0
Avg Revenue beat(8)-3.51%
Revenue beat(12)1
Avg Revenue beat(12)-3.17%
Revenue beat(16)2
Avg Revenue beat(16)-3.57%
PT rev (1m)0%
PT rev (3m)12.44%
EPS NQ rev (1m)-80.72%
EPS NQ rev (3m)-95.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-44.21%
Revenue NQ rev (1m)-2.49%
Revenue NQ rev (3m)-9.67%
Revenue NY rev (1m)-3.48%
Revenue NY rev (3m)-16.31%
Valuation
Industry RankSector Rank
PE 12.18
Fwd PE 17.57
P/S 0.61
P/FCF N/A
P/OCF N/A
P/B 0.5
P/tB 0.5
EV/EBITDA 31.58
EPS(TTM)3.72
EY8.21%
EPS(NY)2.58
Fwd EY5.69%
FCF(TTM)-6.09
FCFYN/A
OCF(TTM)-6.05
OCFYN/A
SpS73.74
BVpS90.63
TBVpS90.11
PEG (NY)N/A
PEG (5Y)N/A
Graham Number87.0965 (92.18%)
Profitability
Industry RankSector Rank
ROA 1.85%
ROE 3.46%
ROCE 2.11%
ROIC 1.57%
ROICexc 1.6%
ROICexgc 1.67%
OM 4.68%
PM (TTM) 4.25%
GM 20.73%
FCFM N/A
ROA(3y)4.3%
ROA(5y)8.33%
ROE(3y)7.94%
ROE(5y)14.9%
ROIC(3y)3.81%
ROIC(5y)7.98%
ROICexc(3y)3.86%
ROICexc(5y)8.12%
ROICexgc(3y)4.04%
ROICexgc(5y)8.47%
ROCE(3y)5.09%
ROCE(5y)10.68%
ROICexgc growth 3Y-45.7%
ROICexgc growth 5Y-37.15%
ROICexc growth 3Y-45.86%
ROICexc growth 5Y-37.3%
OM growth 3Y-34.87%
OM growth 5Y-21.21%
PM growth 3Y-33.04%
PM growth 5Y-20.83%
GM growth 3Y-9.6%
GM growth 5Y-4.03%
F-Score3
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF N/A
Debt/EBITDA 19.8
Cap/Depr 21.38%
Cap/Sales 0.05%
Interest Coverage 0.66
Cash Conversion N/A
Profit Quality N/A
Current Ratio 25.19
Quick Ratio 0.65
Altman-Z 2.67
F-Score3
WACC9.73%
ROIC/WACC0.16
Cap/Depr(3y)48.04%
Cap/Depr(5y)72.16%
Cap/Sales(3y)0.07%
Cap/Sales(5y)0.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-55.18%
EPS 3Y-35.32%
EPS 5Y-20.44%
EPS Q2Q%-54.88%
EPS Next Y-30.66%
EPS Next 2Y-4.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-22.57%
Revenue growth 3Y-9.55%
Revenue growth 5Y-6.35%
Sales Q2Q%-14.97%
Revenue Next Year-0.06%
Revenue Next 2Y8.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-62.41%
EBIT growth 3Y-41.08%
EBIT growth 5Y-26.21%
EBIT Next Year23.28%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.62%
OCF growth 3YN/A
OCF growth 5YN/A

LGI HOMES INC / LGIH Fundamental Analysis FAQ

What is the fundamental rating for LGIH stock?

ChartMill assigns a fundamental rating of 2 / 10 to LGIH.


What is the valuation status for LGIH stock?

ChartMill assigns a valuation rating of 2 / 10 to LGI HOMES INC (LGIH). This can be considered as Overvalued.


How profitable is LGI HOMES INC (LGIH) stock?

LGI HOMES INC (LGIH) has a profitability rating of 2 / 10.


Can you provide the PE and PB ratios for LGIH stock?

The Price/Earnings (PE) ratio for LGI HOMES INC (LGIH) is 12.18 and the Price/Book (PB) ratio is 0.5.


How financially healthy is LGI HOMES INC?

The financial health rating of LGI HOMES INC (LGIH) is 3 / 10.