LGI HOMES INC (LGIH) Stock Fundamental Analysis
USA - NASDAQ:LGIH - US50187T1060 - Common Stock
47.07 USD
+1.53 (+3.36%)
47.07 USD
0 (0%)
LGIH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. LGIH may be in some trouble as it scores bad on both profitability and health. 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.
Each year in the past 5 years LGIH has 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
LGIH has a Return On Assets of 3.89%. This is comparable to the rest of the industry: LGIH outperforms 52.46% of its industry peers.
LGIH has a Return On Equity of 7.58%. This is comparable to the rest of the industry: LGIH outperforms 45.90% of its industry peers.
The Return On Invested Capital of LGIH (3.28%) is worse than 65.57% of its industry peers.
LGIH had an Average Return On Invested Capital over the past 3 years of 6.71%. This is below the industry average of 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.58% | ||
| ROIC | 3.28% |
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
LGIH's Profit Margin of 7.63% is fine compared to the rest of the industry. LGIH outperforms 63.93% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
With a Operating Margin value of 8.10%, LGIH perfoms like the industry average, outperforming 52.46% of the companies in the same industry.
LGIH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 23.25%, LGIH is not doing good in the industry: 63.93% of the companies in the same industry are doing better.
LGIH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 7.63% | ||
| GM | 23.25% |
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
LGIH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LGIH has less shares outstanding
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 2.79 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
LGIH has a Altman-Z score (2.79) which is in line with its industry peers.
LGIH has a Debt/Equity ratio of 0.86. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, LGIH is not doing good in the industry: 63.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.79 |
ROIC/WACC0.35
WACC9.5%
2.3 Liquidity
LGIH has a Current Ratio of 21.95. This indicates that LGIH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LGIH (21.95) is better than 100.00% of its industry peers.
A Quick Ratio of 0.55 indicates that LGIH may have some problems paying its short term obligations.
The Quick ratio of LGIH (0.55) is worse than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.95 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
LGIH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.95%.
LGIH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
LGIH shows a decrease in Revenue. In the last year, the revenue decreased by -7.89%.
Measured over the past years, LGIH shows a small growth in Revenue. The Revenue has been growing by 3.68% on average per year.
EPS 1Y (TTM)-14.95%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-45.16%
Revenue 1Y (TTM)-7.89%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-19.75%
3.2 Future
The Earnings Per Share is expected to grow by 2.33% on average over the next years.
The Revenue is expected to grow by 9.11% on average over the next years. This is quite good.
EPS Next Y-52.38%
EPS Next 2Y-19.33%
EPS Next 3Y2.33%
EPS Next 5YN/A
Revenue Next Year-21.16%
Revenue Next 2Y-4.65%
Revenue Next 3Y9.11%
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 decreasing.
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
A Price/Earnings ratio of 6.72 indicates a rather cheap valuation of LGIH.
Based on the Price/Earnings ratio, LGIH is valued cheaper than 88.52% of the companies in the same industry.
LGIH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.77.
With a Price/Forward Earnings ratio of 8.71, the valuation of LGIH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LGIH is valued cheaply inside the industry as 85.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LGIH to the average of the S&P500 Index (23.23), we can say LGIH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LGIH is valued a bit more expensive than 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y-19.33%
EPS Next 3Y2.33%
5. Dividend
5.1 Amount
No dividends for LGIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
47.07
+1.53 (+3.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners91.71%
Inst Owner Change0%
Ins Owners12.44%
Ins Owner Change0%
Market Cap1.09B
Analysts50.91
Price Target82.88 (76.08%)
Short Float %14.63%
Short Ratio7.08
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)0
Avg EPS beat(2)-9.96%
Min EPS beat(2)-16.15%
Max EPS beat(2)-3.76%
EPS beat(4)1
Avg EPS beat(4)-2.29%
Min EPS beat(4)-16.15%
Max EPS beat(4)13.94%
EPS beat(8)3
Avg EPS beat(8)-2.34%
EPS beat(12)5
Avg EPS beat(12)-1.4%
EPS beat(16)9
Avg EPS beat(16)1.6%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-5.98%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-4.58%
Revenue beat(12)1
Avg Revenue beat(12)-4.59%
Revenue beat(16)4
Avg Revenue beat(16)-3.1%
PT rev (1m)0%
PT rev (3m)-13.1%
EPS NQ rev (1m)-9.18%
EPS NQ rev (3m)-50.23%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-29%
Revenue NQ rev (1m)-5.26%
Revenue NQ rev (3m)-32.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-17.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 8.71 | ||
| P/S | 0.53 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 16.47 |
EPS(TTM)7
EY14.87%
EPS(NY)5.4
Fwd EY11.47%
FCF(TTM)-7.63
FCFYN/A
OCF(TTM)-7.56
OCFYN/A
SpS88.65
BVpS89.21
TBVpS88.69
PEG (NY)N/A
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.58% | ||
| ROCE | 4.32% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.44% | ||
| OM | 8.1% | ||
| PM (TTM) | 7.63% | ||
| GM | 23.25% | ||
| 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-Score3
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.41 | ||
| Cap/Depr | 44.04% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 21.95 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.79 |
F-Score3
WACC9.5%
ROIC/WACC0.35
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)-14.95%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-45.16%
EPS Next Y-52.38%
EPS Next 2Y-19.33%
EPS Next 3Y2.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.89%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-19.75%
Revenue Next Year-21.16%
Revenue Next 2Y-4.65%
Revenue Next 3Y9.11%
Revenue Next 5YN/A
EBIT growth 1Y-27.46%
EBIT growth 3Y-27.11%
EBIT growth 5Y-1.4%
EBIT Next Year-36.4%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1080.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1110.26%
OCF growth 3YN/A
OCF growth 5YN/A