LGI HOMES INC (LGIH) Fundamental Analysis & Valuation

NASDAQ:LGIH • US50187T1060

Current stock price

41.25 USD
+0.22 (+0.54%)
At close:
41.25 USD
0 (0%)
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.
  • LGIH had a negative operating cash flow in the past year.
  • Each year in the past 5 years LGIH has been profitable.
  • LGIH had negative operating cash flow in 4 of the past 5 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M

1.2 Ratios

  • LGIH has a Return On Assets of 1.85%. This is in the lower half of the industry: LGIH underperforms 61.67% of its industry peers.
  • The Return On Equity of LGIH (3.46%) is worse than 63.33% of its industry peers.
  • 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 9.06%.
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

  • LGIH has a Profit Margin of 4.25%. This is comparable to the rest of the industry: LGIH outperforms 55.00% of its industry peers.
  • In the last couple of years the Profit Margin of LGIH has declined.
  • LGIH has a worse Operating Margin (4.68%) than 61.67% of its industry peers.
  • LGIH's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 20.73%, LGIH is doing worse than 71.67% of the companies in the same industry.
  • 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

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3

2. LGIH Health Analysis

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.
  • 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 2.64. 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 2.64, LGIH is in line with its industry, outperforming 41.67% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.79, LGIH is doing worse than 68.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF N/A
Altman-Z 2.64
ROIC/WACC0.17
WACC9.49%
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.
  • Looking at the Current ratio, with a value of 25.19, LGIH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • A Quick Ratio of 0.65 indicates that LGIH may have some problems paying its short term obligations.
  • LGIH has a worse Quick ratio (0.65) than 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

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

3

3. LGIH Growth Analysis

3.1 Past

  • The earnings per share for LGIH have decreased strongly by -55.18% in the last year.
  • The earnings per share for LGIH have been decreasing by -20.44% on average. This is quite bad
  • The Revenue for LGIH has decreased by -22.57% in the past year. This is quite bad
  • Measured over the past years, LGIH shows a decrease in Revenue. The Revenue has been decreasing by -6.35% on average per year.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

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3

4. LGIH Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.09, the valuation of LGIH can be described as very reasonable.
  • 65.00% of the companies in the same industry are more expensive than LGIH, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of LGIH to the average of the S&P500 Index (25.70), we can say LGIH is valued rather cheaply.
  • LGIH is valuated correctly with a Price/Forward Earnings ratio of 15.99.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LGIH is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of LGIH to the average of the S&P500 Index (23.84), we can say LGIH is valued slightly cheaper.
Industry RankSector Rank
PE 11.09
Fwd PE 15.99
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

  • 78.33% of the companies in the same industry are cheaper than LGIH, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 30.41
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%

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LGIH Fundamentals: All Metrics, Ratios and Statistics

LGI HOMES INC

NASDAQ:LGIH (3/13/2026, 8:00:02 PM)

After market: 41.25 0 (0%)

41.25

+0.22 (+0.54%)

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 Cap954.11M
Revenue(TTM)1.71B
Net Income(TTM)72.55M
Analysts76
Price Target86.02 (108.53%)
Short Float %13.29%
Short Ratio6.73
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)-13.29%
Revenue NY rev (3m)-13.66%
Valuation
Industry RankSector Rank
PE 11.09
Fwd PE 15.99
P/S 0.56
P/FCF N/A
P/OCF N/A
P/B 0.46
P/tB 0.46
EV/EBITDA 30.41
EPS(TTM)3.72
EY9.02%
EPS(NY)2.58
Fwd EY6.25%
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 2.64
F-Score3
WACC9.49%
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%.