46.77 USD
+3.62 (+8.39%)
48.25 USD
+1.48 (+3.16%)
Taking everything into account, LGIH scores 3 out of 10 in our fundamental rating. LGIH was compared to 60 industry peers in the Household Durables industry. LGIH has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
The Return On Assets of LGIH (2.65%) is comparable to the rest of the industry.
LGIH has a Return On Equity of 5.15%. This is comparable to the rest of the industry: LGIH outperforms 45.00% of its industry peers.
LGIH's Return On Invested Capital of 2.10% is on the low side compared to the rest of the industry. LGIH is outperformed by 68.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LGIH is below the industry average of 9.69%.
The last Return On Invested Capital (2.10%) for LGIH is well below the 3 year average (6.70%), which needs to be investigated, but indicates that LGIH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 5.15% | ||
| ROIC | 2.1% |
ROA(3y)7.17%
ROA(5y)11.5%
ROE(3y)13.41%
ROE(5y)19.89%
ROIC(3y)6.7%
ROIC(5y)11.06%
1.3 Margins
LGIH has a Profit Margin of 5.98%. This is in the better half of the industry: LGIH outperforms 63.33% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
LGIH has a Operating Margin (5.99%) which is comparable to the rest of the industry.
LGIH's Operating Margin has declined in the last couple of years.
LGIH has a worse Gross Margin (22.19%) than 70.00% of its industry peers.
LGIH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 5.98% | ||
| GM | 22.19% |
OM growth 3Y-18.77%
OM growth 5Y-4.91%
PM growth 3Y-14.19%
PM growth 5Y-1.74%
GM growth 3Y-3.35%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LGIH 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.
LGIH has a worse debt/assets ratio than last year.
2.2 Solvency
LGIH has an Altman-Z score of 2.66. 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 has a Altman-Z score of 2.66. This is in the lower half of the industry: LGIH underperforms 60.00% of its industry peers.
LGIH has a Debt/Equity ratio of 0.85. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
The Debt to Equity ratio of LGIH (0.85) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC0.22
WACC9.37%
2.3 Liquidity
LGIH has a Current Ratio of 21.56. This indicates that LGIH is financially healthy and has no problem in meeting its short term obligations.
LGIH has a Current ratio of 21.56. This is amongst the best in the industry. LGIH outperforms 100.00% of its industry peers.
A Quick Ratio of 0.48 indicates that LGIH may have some problems paying its short term obligations.
The Quick ratio of LGIH (0.48) is worse than 78.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.56 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for LGIH have decreased strongly by -41.25% 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.
The Revenue for LGIH has decreased by -20.62% in the past year. This is quite bad
The Revenue has been growing slightly by 3.68% on average over the past years.
EPS 1Y (TTM)-41.25%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-71.19%
Revenue 1Y (TTM)-20.62%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-39.15%
3.2 Future
Based on estimates for the next years, LGIH will show a decrease in Earnings Per Share. The EPS will decrease by -4.06% on average per year.
The Revenue is expected to grow by 6.93% on average over the next years.
EPS Next Y-57.88%
EPS Next 2Y-26.23%
EPS Next 3Y-4.06%
EPS Next 5YN/A
Revenue Next Year-22.65%
Revenue Next 2Y-4.24%
Revenue Next 3Y6.93%
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 9.54, which indicates a very decent valuation of LGIH.
Based on the Price/Earnings ratio, LGIH is valued a bit cheaper than 71.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.00. LGIH is valued rather cheaply when compared to this.
LGIH is valuated reasonably with a Price/Forward Earnings ratio of 10.35.
78.33% of the companies in the same industry are more expensive than LGIH, based on the Price/Forward Earnings ratio.
LGIH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
76.67% of the companies in the same industry are cheaper than LGIH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.06 |
4.3 Compensation for Growth
A cheap valuation may be justified as LGIH's earnings are expected to decrease with -4.06% in the coming years.
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y-26.23%
EPS Next 3Y-4.06%
5. Dividend
5.1 Amount
No dividends for LGIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
46.77
+3.62 (+8.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners90.74%
Inst Owner Change0%
Ins Owners12.52%
Ins Owner Change0.5%
Market Cap1.08B
Revenue(TTM)1.79B
Net Income(TTM)106.99M
Analysts73.33
Price Target74.46 (59.2%)
Short Float %14.59%
Short Ratio8.13
Dividend
| Industry Rank | Sector 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)-7.04%
Min EPS beat(2)-10.33%
Max EPS beat(2)-3.76%
EPS beat(4)0
Avg EPS beat(4)-8.36%
Min EPS beat(4)-16.15%
Max EPS beat(4)-3.19%
EPS beat(8)2
Avg EPS beat(8)-7.08%
EPS beat(12)4
Avg EPS beat(12)-2.91%
EPS beat(16)8
Avg EPS beat(16)0.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-3.48%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-0.07%
Revenue beat(8)0
Avg Revenue beat(8)-4.2%
Revenue beat(12)1
Avg Revenue beat(12)-3.71%
Revenue beat(16)3
Avg Revenue beat(16)-3.14%
PT rev (1m)-2.28%
PT rev (3m)-10.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.41%
EPS NY rev (1m)-1.44%
EPS NY rev (3m)-11.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 10.35 | ||
| P/S | 0.6 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 25.06 |
EPS(TTM)4.9
EY10.48%
EPS(NY)4.52
Fwd EY9.66%
FCF(TTM)-7.43
FCFYN/A
OCF(TTM)-7.37
OCFYN/A
SpS77.51
BVpS90.12
TBVpS89.6
PEG (NY)N/A
PEG (5Y)2.75
Graham Number99.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 5.15% | ||
| ROCE | 2.77% | ||
| ROIC | 2.1% | ||
| ROICexc | 2.13% | ||
| ROICexgc | 2.23% | ||
| OM | 5.99% | ||
| PM (TTM) | 5.98% | ||
| GM | 22.19% | ||
| FCFM | N/A |
ROA(3y)7.17%
ROA(5y)11.5%
ROE(3y)13.41%
ROE(5y)19.89%
ROIC(3y)6.7%
ROIC(5y)11.06%
ROICexc(3y)6.79%
ROICexc(5y)11.27%
ROICexgc(3y)7.07%
ROICexgc(5y)11.71%
ROCE(3y)8.84%
ROCE(5y)14.59%
ROICexgc growth 3Y-37.83%
ROICexgc growth 5Y-16.08%
ROICexc growth 3Y-38.06%
ROICexc growth 5Y-16.7%
OM growth 3Y-18.77%
OM growth 5Y-4.91%
PM growth 3Y-14.19%
PM growth 5Y-1.74%
GM growth 3Y-3.35%
GM growth 5Y0.39%
F-Score3
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 15.89 | ||
| Cap/Depr | 39.18% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 0.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 21.56 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 2.66 |
F-Score3
WACC9.37%
ROIC/WACC0.22
Cap/Depr(3y)65.82%
Cap/Depr(5y)144.97%
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)-41.25%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-71.19%
EPS Next Y-57.88%
EPS Next 2Y-26.23%
EPS Next 3Y-4.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.62%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-39.15%
Revenue Next Year-22.65%
Revenue Next 2Y-4.24%
Revenue Next 3Y6.93%
Revenue Next 5YN/A
EBIT growth 1Y-52.6%
EBIT growth 3Y-27.12%
EBIT growth 5Y-1.41%
EBIT Next Year-42.2%
EBIT Next 3Y-5.22%
EBIT Next 5YN/A
FCF growth 1Y-397.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-405.95%
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.
What is the valuation status for LGIH stock?
ChartMill assigns a valuation rating of 4 / 10 to LGI HOMES INC (LGIH). This can be considered as Fairly Valued.
Can you provide the profitability details for LGI HOMES INC?
LGI HOMES INC (LGIH) has a profitability rating of 3 / 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 -57.88% 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%.