LGI HOMES INC (LGIH) Stock Fundamental Analysis
USA - NASDAQ:LGIH - US50187T1060 - Common Stock
44.33 USD
-0.13 (-0.29%)
44.33 USD
0 (0%)
Taking everything into account, LGIH scores 3 out of 10 in our fundamental rating. LGIH was compared to 61 industry peers in the Household Durables industry. Both the profitability and financial health of LGIH have multiple concerns. LGIH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LGIH was profitable.
LGIH had a negative operating cash flow in the past year.
Each year in the past 5 years LGIH has been profitable.
In multiple years LGIH reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.63%, LGIH is in line with its industry, outperforming 45.90% of the companies in the same industry.
LGIH has a Return On Equity of 5.10%. This is comparable to the rest of the industry: LGIH outperforms 40.98% of its industry peers.
LGIH has a Return On Invested Capital of 2.10%. This is in the lower half of the industry: LGIH underperforms 70.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LGIH is below the industry average of 9.78%.
The last Return On Invested Capital (2.10%) for LGIH is well below the 3 year average (6.71%), which needs to be investigated, but indicates that LGIH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.63% | ||
| ROE | 5.1% | ||
| ROIC | 2.1% |
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 has a better Profit Margin (5.93%) than 63.93% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
LGIH has a Operating Margin (5.97%) which is comparable to the rest of the industry.
LGIH's Operating Margin has declined in the last couple of years.
The Gross Margin of LGIH (22.19%) is worse than 72.13% of its industry peers.
LGIH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.97% | ||
| PM (TTM) | 5.93% | ||
| GM | 22.19% |
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.
LGIH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.64 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
LGIH has a Altman-Z score (2.64) which is in line with its industry peers.
LGIH has a Debt/Equity ratio of 0.85. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.85, LGIH is doing worse than 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.64 |
ROIC/WACC0.23
WACC9.03%
2.3 Liquidity
LGIH has a Current Ratio of 21.61. This indicates that LGIH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 21.61, LGIH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LGIH has a Quick Ratio of 21.61. This is a bad value and indicates that LGIH is not financially healthy enough and could expect problems in meeting its short term obligations.
LGIH has a worse Quick ratio (0.48) than 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.61 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
LGIH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.25%.
LGIH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
Looking at the last year, LGIH shows a very negative growth in Revenue. The Revenue has decreased by -20.62% in the last year.
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)-41.25%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-71.19%
Revenue 1Y (TTM)-20.62%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-39.15%
3.2 Future
The Earnings Per Share is expected to decrease by -2.18% on average over the next years.
LGIH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
EPS Next Y-55.18%
EPS Next 2Y-21.9%
EPS Next 3Y-2.18%
EPS Next 5YN/A
Revenue Next Year-24.06%
Revenue Next 2Y-6.16%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 9.05, which indicates a very decent valuation of LGIH.
Compared to the rest of the industry, the Price/Earnings ratio of LGIH indicates a somewhat cheap valuation: LGIH is cheaper than 63.93% of the companies listed in the same industry.
LGIH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.07.
Based on the Price/Forward Earnings ratio of 8.76, the valuation of LGIH can be described as reasonable.
81.97% of the companies in the same industry are more expensive than LGIH, based on the Price/Forward Earnings ratio.
LGIH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
LGIH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LGIH is more expensive than 75.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.61 |
4.3 Compensation for Growth
LGIH's earnings are expected to decrease with -2.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.61
EPS Next 2Y-21.9%
EPS Next 3Y-2.18%
5. Dividend
5.1 Amount
LGIH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.33
-0.13 (-0.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners91.71%
Inst Owner Change-2.09%
Ins Owners12.44%
Ins Owner Change0%
Market Cap1.02B
Revenue(TTM)1.79B
Net Income(TTM)106.10M
Analysts50.91
Price Target76.19 (71.87%)
Short Float %15.22%
Short Ratio7.83
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)-7.04%
Min EPS beat(2)-10.33%
Max EPS beat(2)-3.76%
EPS beat(4)0
Avg EPS beat(4)-8.36%
Min EPS beat(4)-16.15%
Max EPS beat(4)-3.19%
EPS beat(8)2
Avg EPS beat(8)-7.08%
EPS beat(12)4
Avg EPS beat(12)-2.91%
EPS beat(16)8
Avg EPS beat(16)0.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-3.48%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-0.07%
Revenue beat(8)0
Avg Revenue beat(8)-4.2%
Revenue beat(12)1
Avg Revenue beat(12)-3.71%
Revenue beat(16)3
Avg Revenue beat(16)-3.14%
PT rev (1m)-8.06%
PT rev (3m)-20.11%
EPS NQ rev (1m)-8.77%
EPS NQ rev (3m)-9.49%
EPS NY rev (1m)-5.89%
EPS NY rev (3m)-33.18%
Revenue NQ rev (1m)2.05%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)-3.67%
Revenue NY rev (3m)-20.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 8.76 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.49 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 24.61 |
EPS(TTM)4.9
EY11.05%
EPS(NY)5.06
Fwd EY11.42%
FCF(TTM)-7.43
FCFYN/A
OCF(TTM)-7.36
OCFYN/A
SpS77.58
BVpS90.17
TBVpS89.65
PEG (NY)N/A
PEG (5Y)2.61
Graham Number99.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.63% | ||
| ROE | 5.1% | ||
| ROCE | 2.76% | ||
| ROIC | 2.1% | ||
| ROICexc | 2.13% | ||
| ROICexgc | 2.23% | ||
| OM | 5.97% | ||
| PM (TTM) | 5.93% | ||
| GM | 22.19% | ||
| 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%
ROICexgc growth 3Y-37.81%
ROICexgc 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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 15.94 | ||
| Cap/Depr | 39.45% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 0.96 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 21.61 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 2.64 |
F-Score3
WACC9.03%
ROIC/WACC0.23
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)-41.25%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-71.19%
EPS Next Y-55.18%
EPS Next 2Y-21.9%
EPS Next 3Y-2.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.62%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-39.15%
Revenue Next Year-24.06%
Revenue Next 2Y-6.16%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
EBIT growth 1Y-52.81%
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-396.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-405.18%
OCF growth 3YN/A
OCF growth 5YN/A
LGI HOMES INC / LGIH FAQ
What is the fundamental rating for LGIH stock?
ChartMill assigns a fundamental rating of 3 / 10 to LGIH.
Can you provide the valuation status for LGI HOMES INC?
ChartMill assigns a valuation rating of 4 / 10 to LGI HOMES INC (LGIH). This can be considered as Fairly Valued.
What is the profitability of LGIH stock?
LGI HOMES INC (LGIH) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for LGIH stock?
The Price/Earnings (PE) ratio for LGI HOMES INC (LGIH) is 9.05 and the Price/Book (PB) ratio is 0.49.
Can you provide the dividend sustainability for LGIH stock?
The dividend rating of LGI HOMES INC (LGIH) is 0 / 10 and the dividend payout ratio is 0%.