LGI HOMES INC (LGIH) Stock Fundamental Analysis
NASDAQ:LGIH - Nasdaq - US50187T1060 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to LGIH. LGIH was compared to 64 industry peers in the Household Durables industry. LGIH scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. LGIH has a correct valuation and a medium 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.
LGIH had positive earnings in each of the past 5 years.
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
Looking at the Return On Assets, with a value of 5.22%, LGIH is in line with its industry, outperforming 51.56% of the companies in the same industry.
The Return On Equity of LGIH (9.62%) is comparable to the rest of the industry.
LGIH's Return On Invested Capital of 4.51% is in line compared to the rest of the industry. LGIH outperforms 40.63% 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 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.62% | ||
| ROIC | 4.51% |
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
Looking at the Profit Margin, with a value of 8.90%, LGIH is in the better half of the industry, outperforming 71.88% 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 (9.63%) is comparable to the rest of the industry.
LGIH's Operating Margin has declined in the last couple of years.
LGIH's Gross Margin of 24.21% is in line compared to the rest of the industry. LGIH outperforms 42.19% 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 | 9.63% | ||
| PM (TTM) | 8.9% | ||
| GM | 24.21% |
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.
The number of shares outstanding for LGIH has been reduced compared to 5 years ago.
The debt/assets ratio for LGIH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.03 indicates that LGIH is not in any danger for bankruptcy at the moment.
LGIH's Altman-Z score of 3.03 is in line compared to the rest of the industry. LGIH outperforms 57.81% of its industry peers.
LGIH has a Debt/Equity ratio of 0.75. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
LGIH's Debt to Equity ratio of 0.75 is on the low side compared to the rest of the industry. LGIH is outperformed by 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.03 |
ROIC/WACC0.51
WACC8.92%
2.3 Liquidity
A Current Ratio of 18.30 indicates that LGIH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 18.30, LGIH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LGIH has a Quick Ratio of 18.30. This is a bad value and indicates that LGIH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LGIH (0.44) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 18.3 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
LGIH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.50%.
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 -6.61%.
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)0.5%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-36.11%
Revenue 1Y (TTM)-6.61%
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 quite strong growth in Earnings Per Share. The EPS will grow by 9.00% on average per year.
LGIH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.43% yearly.
EPS Next Y-9.4%
EPS Next 2Y9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.99%
Revenue Next 2Y13.43%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.80, the valuation of LGIH can be described as very cheap.
Based on the Price/Earnings ratio, LGIH is valued a bit cheaper than 73.44% of the companies in the same industry.
LGIH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.98.
The Price/Forward Earnings ratio is 5.54, which indicates a rather cheap valuation of LGIH.
Based on the Price/Forward Earnings ratio, LGIH is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, LGIH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 5.54 |
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 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.96
EPS Next 2Y9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LGIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.64
-4.61 (-7.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change0.19%
Ins Owners12.42%
Ins Owner Change0.49%
Market Cap1.28B
Analysts50.91
Price Target115.6 (111.57%)
Short Float %12.06%
Short Ratio7.26
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)1
Avg EPS beat(2)5.37%
Min EPS beat(2)-3.19%
Max EPS beat(2)13.94%
EPS beat(4)2
Avg EPS beat(4)-2.71%
Min EPS beat(4)-33.37%
Max EPS beat(4)13.94%
EPS beat(8)4
Avg EPS beat(8)1.31%
EPS beat(12)7
Avg EPS beat(12)3.27%
EPS beat(16)11
Avg EPS beat(16)7.38%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-7.15%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-4.5%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-1.14%
Revenue beat(8)1
Avg Revenue beat(8)-3.5%
Revenue beat(12)2
Avg Revenue beat(12)-3.93%
Revenue beat(16)6
Avg Revenue beat(16)-1.56%
PT rev (1m)0%
PT rev (3m)0.29%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-55.15%
EPS NY rev (1m)-4.71%
EPS NY rev (3m)-30.43%
Revenue NQ rev (1m)-3.38%
Revenue NQ rev (3m)-23.39%
Revenue NY rev (1m)-7.28%
Revenue NY rev (3m)-16.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 5.54 | ||
| P/S | 0.58 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.63 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)8.04
EY14.71%
EPS(NY)9.86
Fwd EY18.05%
FCF(TTM)-6.23
FCFYN/A
OCF(TTM)-6.14
OCFYN/A
SpS94.13
BVpS87.06
TBVpS86.55
PEG (NY)N/A
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.62% | ||
| ROCE | 5.94% | ||
| ROIC | 4.51% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 4.83% | ||
| OM | 9.63% | ||
| PM (TTM) | 8.9% | ||
| GM | 24.21% | ||
| 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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.05 | ||
| Cap/Depr | 62.81% | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | 1.88 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 18.3 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.03 |
F-Score4
WACC8.92%
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)0.5%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-36.11%
EPS Next Y-9.4%
EPS Next 2Y9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.61%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-10.09%
Revenue Next Year3.99%
Revenue Next 2Y13.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.08%
EBIT growth 3Y-27.11%
EBIT growth 5Y-1.4%
EBIT Next Year14.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-149.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-152.31%
OCF growth 3YN/A
OCF growth 5YN/A