LGI HOMES INC (LGIH) Stock Fundamental Analysis
USA - NASDAQ:LGIH - US50187T1060 - Common Stock
46.06 USD
+0.14 (+0.3%)
46.9 USD
+0.84 (+1.82%)
LGIH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. Both the profitability and financial health of LGIH have multiple concerns. LGIH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LGIH had positive earnings in the past year.
LGIH had a negative operating cash flow in the past year.
In the past 5 years LGIH has always been profitable.
In multiple years LGIH reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of LGIH (3.89%) is comparable to the rest of the industry.
The Return On Equity of LGIH (7.58%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.28%, LGIH is not doing good in the industry: 65.57% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for LGIH 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
With a decent Profit Margin value of 7.63%, LGIH is doing good in the industry, outperforming 63.93% of the companies in the same industry.
In the last couple of years the Profit Margin of LGIH has declined.
LGIH's Operating Margin of 8.10% is in line compared to the rest of the industry. LGIH outperforms 52.46% of its industry peers.
LGIH's Operating Margin has declined in the last couple of years.
LGIH has a worse Gross Margin (23.25%) than 63.93% of its industry peers.
In the last couple of years the Gross Margin of LGIH has remained more or less at the same level.
| 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
The number of shares outstanding for LGIH has been reduced compared to 5 years ago.
Compared to 1 year ago, LGIH has a worse debt to assets ratio.
2.2 Solvency
LGIH has an Altman-Z score of 2.78. 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 (2.78) is comparable to the rest of the industry.
LGIH has a Debt/Equity ratio of 0.86. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
LGIH has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: LGIH underperforms 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.78 |
ROIC/WACC0.35
WACC9.38%
2.3 Liquidity
A Current Ratio of 21.95 indicates that LGIH has no problem at all paying its short term obligations.
LGIH's Current ratio of 21.95 is amongst the best of the industry. LGIH outperforms 100.00% of its industry peers.
A Quick Ratio of 0.55 indicates that LGIH may have some problems paying its short term obligations.
LGIH has a worse Quick ratio (0.55) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.95 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for LGIH have decreased strongly by -14.95% in the last year.
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%.
The Revenue has been growing slightly by 3.68% on average over the past years.
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
Based on estimates for the next years, LGIH will show a decrease in Earnings Per Share. The EPS will decrease by -1.40% on average per year.
Based on estimates for the next years, LGIH will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
EPS Next Y-54.47%
EPS Next 2Y-20.27%
EPS Next 3Y-1.4%
EPS Next 5YN/A
Revenue Next Year-23.4%
Revenue Next 2Y-5.41%
Revenue Next 3Y5.7%
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
The Price/Earnings ratio is 6.58, which indicates a rather cheap valuation of LGIH.
88.52% of the companies in the same industry are more expensive than LGIH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LGIH to the average of the S&P500 Index (26.89), we can say LGIH is valued rather cheaply.
The Price/Forward Earnings ratio is 8.73, which indicates a very decent valuation of LGIH.
Based on the Price/Forward Earnings ratio, LGIH is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.99. LGIH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 8.73 |
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 65.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.9
EPS Next 2Y-20.27%
EPS Next 3Y-1.4%
5. Dividend
5.1 Amount
No dividends for LGIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.06
+0.14 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners91.71%
Inst Owner Change0.93%
Ins Owners12.44%
Ins Owner Change0%
Market Cap1.06B
Revenue(TTM)2.04B
Net Income(TTM)155.97M
Analysts50.91
Price Target82.88 (79.94%)
Short Float %15.43%
Short Ratio8.13
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)-10.7%
EPS NQ rev (3m)-51.07%
EPS NY rev (1m)-4.38%
EPS NY rev (3m)-32.11%
Revenue NQ rev (1m)-7.77%
Revenue NQ rev (3m)-34.34%
Revenue NY rev (1m)-2.84%
Revenue NY rev (3m)-20.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.52 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 16.33 |
EPS(TTM)7
EY15.2%
EPS(NY)5.28
Fwd EY11.46%
FCF(TTM)-7.63
FCFYN/A
OCF(TTM)-7.56
OCFYN/A
SpS88.65
BVpS89.21
TBVpS88.69
PEG (NY)N/A
PEG (5Y)1.9
Graham Number118.53
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%
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 Turnover0.51
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 | 2.78 |
F-Score3
WACC9.38%
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-54.47%
EPS Next 2Y-20.27%
EPS Next 3Y-1.4%
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-23.4%
Revenue Next 2Y-5.41%
Revenue Next 3Y5.7%
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
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 5 / 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 6.58 and the Price/Book (PB) ratio is 0.52.
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%.