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LGI HOMES INC (LGIH) Stock Fundamental Analysis

NASDAQ:LGIH - Nasdaq - US50187T1060 - Common Stock - Currency: USD

78.36  +2.37 (+3.12%)

Fundamental Rating

4

Overall LGIH gets a fundamental rating of 4 out of 10. We evaluated LGIH against 66 industry peers in the Household Durables industry. LGIH has an average financial health and profitability rating. LGIH is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year LGIH was profitable.
LGIH had a negative operating cash flow in the past year.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

LGIH's Return On Assets of 5.16% is in line compared to the rest of the industry. LGIH outperforms 51.56% of its industry peers.
Looking at the Return On Equity, with a value of 9.88%, LGIH is in line with its industry, outperforming 48.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.84%, LGIH is in line with its industry, outperforming 45.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LGIH is in line with the industry average of 12.03%.
The 3 year average ROIC (11.66%) for LGIH is well above the current ROIC(4.84%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 5.16%
ROE 9.88%
ROIC 4.84%
ROA(3y)11.52%
ROA(5y)12.6%
ROE(3y)20.47%
ROE(5y)22.19%
ROIC(3y)11.66%
ROIC(5y)12.6%
LGIH Yearly ROA, ROE, ROICLGIH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 8.75%, 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.
LGIH's Operating Margin of 10.05% is in line compared to the rest of the industry. LGIH outperforms 59.38% of its industry peers.
In the last couple of years the Operating Margin of LGIH has declined.
LGIH has a Gross Margin (24.33%) which is in line with its industry peers.
In the last couple of years the Gross Margin of LGIH has declined.
Industry RankSector Rank
OM 10.05%
PM (TTM) 8.75%
GM 24.33%
OM growth 3Y-13.73%
OM growth 5Y-5.83%
PM growth 3Y-14.84%
PM growth 5Y-3.93%
GM growth 3Y-3.36%
GM growth 5Y-1.86%
LGIH Yearly Profit, Operating, Gross MarginsLGIH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LGIH is still creating some value.
Compared to 1 year ago, LGIH has more shares outstanding
Compared to 5 years ago, LGIH has more shares outstanding
The debt/assets ratio for LGIH has been reduced compared to a year ago.
LGIH Yearly Shares OutstandingLGIH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M
LGIH Yearly Total Debt VS Total AssetsLGIH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

LGIH has an Altman-Z score of 3.15. This indicates that LGIH is financially healthy and has little risk of bankruptcy at the moment.
LGIH's Altman-Z score of 3.15 is in line compared to the rest of the industry. LGIH outperforms 53.13% of its industry peers.
LGIH has a Debt/Equity ratio of 0.80. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, LGIH is doing worse than 71.88% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF N/A
Altman-Z 3.15
ROIC/WACC0.54
WACC8.92%
LGIH Yearly LT Debt VS Equity VS FCFLGIH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

LGIH has a Current Ratio of 16.16. This indicates that LGIH is financially healthy and has no problem in meeting its short term obligations.
LGIH has a better Current ratio (16.16) than 100.00% of its industry peers.
LGIH has a Quick Ratio of 16.16. 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 (0.51) is worse than 79.69% of its industry peers.
Industry RankSector Rank
Current Ratio 16.16
Quick Ratio 0.51
LGIH Yearly Current Assets VS Current LiabilitesLGIH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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6

3. Growth

3.1 Past

LGIH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.59%, which is quite good.
Measured over the past 5 years, LGIH shows a small growth in Earnings Per Share. The EPS has been growing by 6.18% on average per year.
LGIH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.68%.
LGIH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.41% yearly.
EPS 1Y (TTM)8.59%
EPS 3Y-10.31%
EPS 5Y6.18%
EPS Q2Q%3.87%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y-0.13%
Revenue growth 5Y9.41%
Sales Q2Q%5.56%

3.2 Future

LGIH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.27% yearly.
Based on estimates for the next years, LGIH will show a quite strong growth in Revenue. The Revenue will grow by 9.96% on average per year.
EPS Next Y0.88%
EPS Next 2Y10.89%
EPS Next 3Y14.27%
EPS Next 5YN/A
Revenue Next Year-7.1%
Revenue Next 2Y6.98%
Revenue Next 3Y9.96%
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 stable: in the next years the growth will be about the same than in the last years.
LGIH Yearly Revenue VS EstimatesLGIH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
LGIH Yearly EPS VS EstimatesLGIH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.40 indicates a reasonable valuation of LGIH.
65.63% of the companies in the same industry are more expensive than LGIH, based on the Price/Earnings ratio.
LGIH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.53.
LGIH is valuated cheaply with a Price/Forward Earnings ratio of 7.57.
Based on the Price/Forward Earnings ratio, LGIH is valued a bit cheaper than 78.13% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LGIH to the average of the S&P500 Index (22.65), we can say LGIH is valued rather cheaply.
Industry RankSector Rank
PE 9.4
Fwd PE 7.57
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 60.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.47
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

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LGIH does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as LGIH's earnings are expected to grow with 14.27% in the coming years.
PEG (NY)10.73
PEG (5Y)1.52
EPS Next 2Y10.89%
EPS Next 3Y14.27%

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0

5. Dividend

5.1 Amount

LGIH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LGI HOMES INC

NASDAQ:LGIH (2/25/2025, 9:41:00 AM)

78.36

+2.37 (+3.12%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)02-25 2025-02-25/bmo
Inst Owners86.38%
Inst Owner Change-95.5%
Ins Owners12.42%
Ins Owner Change0.57%
Market Cap1.84B
Analysts50.91
Price Target122.4 (56.2%)
Short Float %10.95%
Short Ratio10.96
Dividend
Industry RankSector 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)2
Avg EPS beat(2)12.85%
Min EPS beat(2)11.77%
Max EPS beat(2)13.94%
EPS beat(4)2
Avg EPS beat(4)-5.8%
Min EPS beat(4)-33.37%
Max EPS beat(4)13.94%
EPS beat(8)4
Avg EPS beat(8)-0.19%
EPS beat(12)8
Avg EPS beat(12)4.03%
EPS beat(16)12
Avg EPS beat(16)8.99%
Revenue beat(2)0
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-5.52%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-8.78%
Max Revenue beat(4)-1.14%
Revenue beat(8)1
Avg Revenue beat(8)-3.83%
Revenue beat(12)3
Avg Revenue beat(12)-3.03%
Revenue beat(16)7
Avg Revenue beat(16)-0.93%
PT rev (1m)6.19%
PT rev (3m)2.13%
EPS NQ rev (1m)-11.71%
EPS NQ rev (3m)-11.71%
EPS NY rev (1m)-1.95%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)-10.42%
Revenue NQ rev (3m)-14.14%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-4.73%
Valuation
Industry RankSector Rank
PE 9.4
Fwd PE 7.57
P/S 0.82
P/FCF N/A
P/OCF N/A
P/B 0.92
P/tB 0.93
EV/EBITDA 14.47
EPS(TTM)8.34
EY10.64%
EPS(NY)10.35
Fwd EY13.21%
FCF(TTM)-10.08
FCFYN/A
OCF(TTM)-10
OCFYN/A
SpS95.86
BVpS84.94
TBVpS84.43
PEG (NY)10.73
PEG (5Y)1.52
Profitability
Industry RankSector Rank
ROA 5.16%
ROE 9.88%
ROCE 6.27%
ROIC 4.84%
ROICexc 4.92%
ROICexgc 5.16%
OM 10.05%
PM (TTM) 8.75%
GM 24.33%
FCFM N/A
ROA(3y)11.52%
ROA(5y)12.6%
ROE(3y)20.47%
ROE(5y)22.19%
ROIC(3y)11.66%
ROIC(5y)12.6%
ROICexc(3y)11.88%
ROICexc(5y)12.86%
ROICexgc(3y)12.36%
ROICexgc(5y)13.29%
ROCE(3y)15.12%
ROCE(5y)16.33%
ROICexcg growth 3Y-30.59%
ROICexcg growth 5Y-13.88%
ROICexc growth 3Y-30.75%
ROICexc growth 5Y-14.17%
OM growth 3Y-13.73%
OM growth 5Y-5.83%
PM growth 3Y-14.84%
PM growth 5Y-3.93%
GM growth 3Y-3.36%
GM growth 5Y-1.86%
F-Score4
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF N/A
Debt/EBITDA 6.94
Cap/Depr 68.84%
Cap/Sales 0.09%
Interest Coverage 2.32
Cash Conversion N/A
Profit Quality N/A
Current Ratio 16.16
Quick Ratio 0.51
Altman-Z 3.15
F-Score4
WACC8.92%
ROIC/WACC0.54
Cap/Depr(3y)92.2%
Cap/Depr(5y)155.79%
Cap/Sales(3y)0.06%
Cap/Sales(5y)0.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.59%
EPS 3Y-10.31%
EPS 5Y6.18%
EPS Q2Q%3.87%
EPS Next Y0.88%
EPS Next 2Y10.89%
EPS Next 3Y14.27%
EPS Next 5YN/A
Revenue 1Y (TTM)0.68%
Revenue growth 3Y-0.13%
Revenue growth 5Y9.41%
Sales Q2Q%5.56%
Revenue Next Year-7.1%
Revenue Next 2Y6.98%
Revenue Next 3Y9.96%
Revenue Next 5YN/A
EBIT growth 1Y5.65%
EBIT growth 3Y-13.84%
EBIT growth 5Y3.03%
EBIT Next Year14.93%
EBIT Next 3Y20.13%
EBIT Next 5YN/A
FCF growth 1Y46.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y46.47%
OCF growth 3YN/A
OCF growth 5YN/A