LGI HOMES INC (LGIH) Stock Fundamental Analysis
NASDAQ:LGIH - Nasdaq - US50187T1060 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to LGIH. LGIH was compared to 63 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
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.
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 (4.71%) which is in line with its industry peers.
The Return On Equity of LGIH (8.96%) is comparable to the rest of the industry.
LGIH has a Return On Invested Capital of 3.96%. This is in the lower half of the industry: LGIH underperforms 61.90% 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 10.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.96% | ||
| ROIC | 3.96% |
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 Profit Margin of 8.46%. This is in the better half of the industry: LGIH outperforms 69.84% of its industry peers.
LGIH's Profit Margin has declined in the last couple of years.
The Operating Margin of LGIH (8.95%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LGIH has declined.
LGIH has a Gross Margin (23.84%) 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 | 8.95% | ||
| PM (TTM) | 8.46% | ||
| GM | 23.84% |
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.
LGIH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LGIH is higher compared to a year ago.
2.2 Solvency
LGIH has an Altman-Z score of 2.94. This is not the best score and indicates that LGIH is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LGIH (2.94) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.81 indicates that LGIH is somewhat dependend on debt financing.
LGIH has a worse Debt to Equity ratio (0.81) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.94 |
ROIC/WACC0.51
WACC7.77%
2.3 Liquidity
LGIH has a Current Ratio of 20.34. This indicates that LGIH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 20.34, LGIH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that LGIH may have some problems paying its short term obligations.
LGIH has a Quick ratio of 0.45. This is in the lower half of the industry: LGIH underperforms 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 20.34 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.50% over the past year.
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.
The Revenue has decreased by -4.37% in the past 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)-4.37%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-10.09%
3.2 Future
LGIH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.78% yearly.
The Revenue is expected to grow by 10.59% on average over the next years. This is quite good.
EPS Next Y-32.93%
EPS Next 2Y0.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.21%
Revenue Next 2Y10.59%
Revenue Next 3YN/A
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
LGIH is valuated cheaply with a Price/Earnings ratio of 6.71.
88.89% of the companies in the same industry are more expensive than LGIH, based on the Price/Earnings ratio.
LGIH is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.46, which indicates a rather cheap valuation of LGIH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LGIH indicates a rather cheap valuation: LGIH is cheaper than 95.24% of the companies listed in the same industry.
LGIH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.71 | ||
| Fwd PE | 6.46 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y0.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LGIH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.48
+1.21 (+2.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.21%
Inst Owner Change-0.23%
Ins Owners12.27%
Ins Owner Change-0.08%
Market Cap1.27B
Analysts51.67
Price Target95.37 (75.06%)
Short Float %16.86%
Short Ratio9.79
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)-9.67%
Min EPS beat(2)-16.15%
Max EPS beat(2)-3.19%
EPS beat(4)2
Avg EPS beat(4)1.59%
Min EPS beat(4)-16.15%
Max EPS beat(4)13.94%
EPS beat(8)4
Avg EPS beat(8)0.63%
EPS beat(12)6
Avg EPS beat(12)0.49%
EPS beat(16)10
Avg EPS beat(16)2.94%
Revenue beat(2)0
Avg Revenue beat(2)-6.57%
Min Revenue beat(2)-7.15%
Max Revenue beat(2)-5.98%
Revenue beat(4)0
Avg Revenue beat(4)-4.95%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-4.52%
Revenue beat(12)1
Avg Revenue beat(12)-4.61%
Revenue beat(16)5
Avg Revenue beat(16)-2.91%
PT rev (1m)0%
PT rev (3m)-17.5%
EPS NQ rev (1m)-6.72%
EPS NQ rev (3m)-34.88%
EPS NY rev (1m)-2.62%
EPS NY rev (3m)-25.97%
Revenue NQ rev (1m)-3.94%
Revenue NQ rev (3m)-19.13%
Revenue NY rev (1m)-2.2%
Revenue NY rev (3m)-7.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.71 | ||
| Fwd PE | 6.46 | ||
| P/S | 0.59 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.62 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 14.44 |
EPS(TTM)8.12
EY14.9%
EPS(NY)8.43
Fwd EY15.47%
FCF(TTM)-7.4
FCFYN/A
OCF(TTM)-7.32
OCFYN/A
SpS92.44
BVpS87.29
TBVpS86.77
PEG (NY)N/A
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.96% | ||
| ROCE | 5.22% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 4.19% | ||
| OM | 8.95% | ||
| PM (TTM) | 8.46% | ||
| GM | 23.84% | ||
| 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.4 | ||
| Cap/Depr | 54.07% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 1.81 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 20.34 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 2.94 |
F-Score4
WACC7.77%
ROIC/WACC0.51
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-32.93%
EPS Next 2Y0.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-10.09%
Revenue Next Year-4.21%
Revenue Next 2Y10.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-14.33%
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-11.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.51%
OCF growth 3YN/A
OCF growth 5YN/A