LGI HOMES INC (LGIH) Stock Fundamental Analysis
NASDAQ:LGIH - Nasdaq - US50187T1060 - Common Stock - Currency: USD
Taking everything into account, LGIH scores 3 out of 10 in our fundamental rating. LGIH was compared to 63 industry peers in the Household Durables industry. Both the profitability and financial health of LGIH have multiple concerns. 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.
LGIH had a negative operating cash flow in the past year.
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
With a Return On Assets value of 4.71%, LGIH perfoms like the industry average, outperforming 53.97% of the companies in the same industry.
LGIH has a Return On Equity (8.96%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.96%, LGIH is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for LGIH is below the industry average of 10.55%.
| 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
The Profit Margin of LGIH (8.46%) is better than 68.25% 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 8.95%, LGIH is in line with its industry, outperforming 53.97% of the companies in the same industry.
In the last couple of years the Operating Margin of LGIH has declined.
With a Gross Margin value of 23.84%, LGIH perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
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.
LGIH has less shares outstanding than it did 1 year ago.
LGIH has less shares outstanding than it did 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 2.93. 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.
LGIH's Altman-Z score of 2.93 is in line compared to the rest of the industry. LGIH outperforms 52.38% of its industry peers.
LGIH has a Debt/Equity ratio of 0.81. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, LGIH is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.93 |
ROIC/WACC0.44
WACC8.99%
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.
Looking at the Current ratio, with a value of 20.34, LGIH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LGIH has a Quick Ratio of 20.34. 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 0.45, LGIH is not doing good in the industry: 79.37% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
Looking at the last year, LGIH shows a decrease in Revenue. The Revenue has decreased by -4.37% 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)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
Based on estimates for the next years, LGIH will show a small growth in Earnings Per Share. The EPS will grow by 2.94% on average per year.
LGIH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.62% yearly.
EPS Next Y-31.12%
EPS Next 2Y2.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.06%
Revenue Next 2Y12.62%
Revenue Next 3YN/A
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 stable.
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 6.49.
85.71% 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 27.30. LGIH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.99, which indicates a rather cheap valuation of LGIH.
Based on the Price/Forward Earnings ratio, LGIH is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
LGIH is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 5.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LGIH is valued a bit more expensive than the industry average as 65.08% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.87
EPS Next 2Y2.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LGIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.71
+0.55 (+1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.21%
Inst Owner Change0%
Ins Owners12.27%
Ins Owner Change-0.08%
Market Cap1.23B
Analysts51.67
Price Target95.37 (80.93%)
Short Float %15.66%
Short Ratio9.69
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)-13.69%
PT rev (3m)-17.5%
EPS NQ rev (1m)-3.52%
EPS NQ rev (3m)-32.65%
EPS NY rev (1m)-6.95%
EPS NY rev (3m)-27.55%
Revenue NQ rev (1m)-1.73%
Revenue NQ rev (3m)-17.27%
Revenue NY rev (1m)-3.17%
Revenue NY rev (3m)-8.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 5.99 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.6 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 14.37 |
EPS(TTM)8.12
EY15.41%
EPS(NY)8.8
Fwd EY16.69%
FCF(TTM)-7.4
FCFYN/A
OCF(TTM)-7.32
OCFYN/A
SpS92.44
BVpS87.29
TBVpS86.77
PEG (NY)N/A
PEG (5Y)1.87
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 | 2.93 |
F-Score4
WACC8.99%
ROIC/WACC0.44
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-31.12%
EPS Next 2Y2.94%
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-2.06%
Revenue Next 2Y12.62%
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