LGI HOMES INC (LGIH) Fundamental Analysis & Valuation

NASDAQ:LGIH • US50187T1060

Current stock price

34.24 USD
-2.82 (-7.61%)
At close:
34.44 USD
+0.2 (+0.58%)
Pre-Market:

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

1

1. LGIH Profitability Analysis

1.1 Basic Checks

  • LGIH had positive earnings in the past year.
  • LGIH had a negative operating cash flow in the past year.
  • 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

  • With a Return On Assets value of 1.85%, LGIH is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
  • The Return On Equity of LGIH (3.46%) is worse than 63.33% of its industry peers.
  • LGIH has a Return On Invested Capital of 1.57%. This is in the lower half of the industry: LGIH underperforms 71.67% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LGIH is significantly below the industry average of 9.22%.
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 of 4.25%. This is comparable to the rest of the industry: LGIH outperforms 55.00% of its industry peers.
  • In the last couple of years the Profit Margin of LGIH has declined.
  • Looking at the Operating Margin, with a value of 4.68%, LGIH is doing worse than 61.67% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LGIH has declined.
  • LGIH has a worse Gross Margin (20.73%) than 71.67% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
  • Compared to 1 year ago, LGIH has a worse debt to assets ratio.
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 2.59 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.59, LGIH is doing worse than 60.00% of the companies in the same industry.
  • LGIH has a Debt/Equity ratio of 0.79. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
  • LGIH has a worse Debt to Equity ratio (0.79) than 68.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF N/A
Altman-Z 2.59
ROIC/WACC0.17
WACC9.09%
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

  • A Current Ratio of 25.19 indicates that LGIH has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 25.19, LGIH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • LGIH has a Quick Ratio of 25.19. This is a bad value and indicates that LGIH is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.65, LGIH is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. LGIH Growth Analysis

3.1 Past

  • The earnings per share for LGIH have decreased strongly by -55.18% in the last year.
  • LGIH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.44% yearly.
  • The Revenue for LGIH has decreased by -22.57% in the past year. This is quite bad
  • LGIH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.35% yearly.
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

  • LGIH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.27% yearly.
  • Based on estimates for the next years, LGIH will show a quite strong growth in Revenue. The Revenue will grow by 8.80% on average per year.
EPS Next Y-30.66%
EPS Next 2Y-4.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.55%
Revenue Next 2Y8.8%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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.
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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3

4. LGIH Valuation Analysis

4.1 Price/Earnings Ratio

  • LGIH is valuated reasonably with a Price/Earnings ratio of 9.20.
  • 75.00% of the companies in the same industry are more expensive than LGIH, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.23. LGIH is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 13.27 indicates a correct 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 22.42. LGIH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 9.2
Fwd PE 13.27
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

  • 76.67% of the companies in the same industry are cheaper than LGIH, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 28.48
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

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

More info and screens

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

0

5. LGIH Dividend Analysis

5.1 Amount

  • No dividends for LGIH!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

LGIH Fundamentals: All Metrics, Ratios and Statistics

LGI HOMES INC

NASDAQ:LGIH (3/20/2026, 8:05:54 PM)

Premarket: 34.44 +0.2 (+0.58%)

34.24

-2.82 (-7.61%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-17
Earnings (Next)04-27
Inst Owners88.79%
Inst Owner Change-1.76%
Ins Owners12.5%
Ins Owner Change0.66%
Market Cap791.97M
Revenue(TTM)1.71B
Net Income(TTM)72.55M
Analysts76
Price Target86.02 (151.23%)
Short Float %13.53%
Short Ratio6.65
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)12.44%
PT rev (3m)15.53%
EPS NQ rev (1m)-78.72%
EPS NQ rev (3m)-44.07%
EPS NY rev (1m)-44.21%
EPS NY rev (3m)-43.85%
Revenue NQ rev (1m)-7.36%
Revenue NQ rev (3m)-7.36%
Revenue NY rev (1m)-10.45%
Revenue NY rev (3m)-13.66%
Valuation
Industry RankSector Rank
PE 9.2
Fwd PE 13.27
P/S 0.46
P/FCF N/A
P/OCF N/A
P/B 0.38
P/tB 0.38
EV/EBITDA 28.48
EPS(TTM)3.72
EY10.86%
EPS(NY)2.58
Fwd EY7.53%
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 Number87.1
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 2.59
F-Score3
WACC9.09%
ROIC/WACC0.17
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 Year3.55%
Revenue Next 2Y8.8%
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 3 / 10 to LGI HOMES INC (LGIH). This can be considered as Overvalued.


Can you provide the profitability details for LGI HOMES INC?

LGI HOMES INC (LGIH) has a profitability rating of 1 / 10.


What is the earnings growth outlook for LGI HOMES INC?

The Earnings per Share (EPS) of LGI HOMES INC (LGIH) is expected to decline by -30.66% in the next year.


How sustainable is the dividend of LGI HOMES INC (LGIH) stock?

The dividend rating of LGI HOMES INC (LGIH) is 0 / 10 and the dividend payout ratio is 0%.