53.28 USD
+6.51 (+13.92%)
53.28 USD
0 (0%)
LGIH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. LGIH may be in some trouble as it scores bad on both profitability and health. LGIH has a valuation in line with the averages, 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.
In the past 5 years LGIH has always been profitable.
In multiple years LGIH reported negative operating cash flow during the last 5 years.
1.2 Ratios
LGIH has a Return On Assets (2.65%) which is in line with its industry peers.
LGIH's Return On Equity of 5.15% is in line compared to the rest of the industry. LGIH outperforms 43.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.10%, LGIH is doing worse than 68.33% of the companies in the same industry.
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's Profit Margin of 5.98% is fine compared to the rest of the industry. LGIH outperforms 63.33% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
Looking at the Operating Margin, with a value of 5.99%, LGIH is in line with its industry, outperforming 41.67% of the companies in the same industry.
LGIH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 22.19%, LGIH is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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 | 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
LGIH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LGIH has less shares outstanding
LGIH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LGIH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.70 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
LGIH's Altman-Z score of 2.70 is in line compared to the rest of the industry. LGIH outperforms 41.67% 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.
LGIH's Debt to Equity ratio of 0.85 is on the low side compared to the rest of the industry. LGIH is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.7 |
ROIC/WACC0.22
WACC9.38%
2.3 Liquidity
A Current Ratio of 21.56 indicates that LGIH has no problem at all paying its short term obligations.
The Current ratio of LGIH (21.56) is better than 100.00% of its industry peers.
A Quick Ratio of 0.48 indicates that LGIH may have some problems paying its short term obligations.
LGIH has a worse Quick ratio (0.48) than 78.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.56 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
LGIH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.25%.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
LGIH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.62%.
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)-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
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.87, the valuation of LGIH can be described as very reasonable.
66.67% 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 27.19.
Based on the Price/Forward Earnings ratio of 11.80, the valuation of LGIH can be described as reasonable.
LGIH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LGIH is cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LGIH to the average of the S&P500 Index (23.88), we can say LGIH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 11.8 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.41 |
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)3.14
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% |
53.28
+6.51 (+13.92%)
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 Cap1.23B
Revenue(TTM)1.79B
Net Income(TTM)106.99M
Analysts73.33
Price Target74.46 (39.75%)
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)0%
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 | 10.87 | ||
| Fwd PE | 11.8 | ||
| P/S | 0.69 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.59 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 26.41 |
EPS(TTM)4.9
EY9.2%
EPS(NY)4.52
Fwd EY8.48%
FCF(TTM)-7.43
FCFYN/A
OCF(TTM)-7.37
OCFYN/A
SpS77.51
BVpS90.12
TBVpS89.6
PEG (NY)N/A
PEG (5Y)3.14
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 | 2.7 |
F-Score3
WACC9.38%
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%.