LGI HOMES INC (LGIH) Fundamental Analysis & Valuation

NASDAQ:LGIH • US50187T1060

Current stock price

39.34 USD
+1.99 (+5.33%)
At close:
40.01 USD
+0.67 (+1.7%)
After Hours:

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

  • In the past year LGIH was profitable.
  • In the past year LGIH has reported a negative cash flow from operations.
  • LGIH had positive earnings in each of the past 5 years.
  • In the past 5 years LGIH reported 4 times negative operating cash flow.
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

  • LGIH has a worse Return On Assets (1.85%) than 61.67% of its industry peers.
  • Looking at the Return On Equity, with a value of 3.46%, LGIH is doing worse than 63.33% of the companies in the same industry.
  • LGIH has a worse Return On Invested Capital (1.57%) than 71.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital 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

  • With a Profit Margin value of 4.25%, LGIH perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LGIH has declined.
  • The Operating Margin of LGIH (4.68%) is worse than 61.67% of its industry peers.
  • LGIH's Operating Margin has declined in the last couple of years.
  • LGIH has a Gross Margin of 20.73%. This is in the lower half of the industry: LGIH underperforms 71.67% of its industry peers.
  • LGIH's Gross Margin has declined in the last couple of years.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. LGIH Health Analysis

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.
  • 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.
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

  • LGIH has an Altman-Z score of 2.61. 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.
  • Looking at the Altman-Z score, with a value of 2.61, 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 Debt to Equity ratio of 0.79. This is in the lower half of the industry: LGIH underperforms 68.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF N/A
Altman-Z 2.61
ROIC/WACC0.17
WACC9.41%
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

  • LGIH has a Current Ratio of 25.19. This indicates that LGIH is financially healthy and has no problem in meeting its short term obligations.
  • LGIH has a Current ratio of 25.19. This is amongst the best in the industry. LGIH outperforms 100.00% of its industry peers.
  • A Quick Ratio of 0.65 indicates that LGIH may have some problems paying its short term obligations.
  • LGIH has a Quick ratio of 0.65. This is in the lower half of the industry: LGIH underperforms 70.00% of its industry peers.
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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. LGIH Growth Analysis

3.1 Past

  • LGIH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.18%.
  • 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

  • The Earnings Per Share is expected to decrease by -4.27% on average over the next years.
  • The Revenue is expected to grow by 8.80% on average over the next years. This is quite good.
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.
  • 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.
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

More info and screens

Find the best growth stocksShow best growing peers

3

4. LGIH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.58, the valuation of LGIH can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of LGIH indicates a somewhat cheap valuation: LGIH is cheaper than 71.67% of the companies listed in the same industry.
  • LGIH is valuated cheaply when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 15.25, the valuation of LGIH can be described as correct.
  • LGIH's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of LGIH to the average of the S&P500 Index (22.79), we can say LGIH is valued slightly cheaper.
Industry RankSector Rank
PE 10.58
Fwd PE 15.25
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

  • LGIH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LGIH is more expensive than 76.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 29.34
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

  • A cheap valuation may be justified as LGIH's earnings are expected to decrease with -4.27% in the coming years.
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

  • LGIH does not give a dividend.
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 (3/25/2026, 8:00:02 PM)

After market: 40.01 +0.67 (+1.7%)

39.34

+1.99 (+5.33%)

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 Cap909.93M
Revenue(TTM)1.71B
Net Income(TTM)72.55M
Analysts76
Price Target86.02 (118.66%)
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 10.58
Fwd PE 15.25
P/S 0.53
P/FCF N/A
P/OCF N/A
P/B 0.43
P/tB 0.44
EV/EBITDA 29.34
EPS(TTM)3.72
EY9.46%
EPS(NY)2.58
Fwd EY6.56%
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 2.61
F-Score3
WACC9.41%
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%.