53.86 USD
+3.66 (+7.29%)
At close: Feb 3, 2026
53.86 USD
0 (0%)
After Hours: 2/3/2026, 8:28:59 PM
We assign a fundamental rating of 3 out of 10 to LGIH. LGIH was compared to 60 industry peers in the Household Durables industry. Both the profitability and financial health of LGIH have multiple concerns. LGIH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
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.
- In multiple years LGIH reported negative operating cash flow during the last 5 years.
1.2 Ratios
- LGIH has a Return On Assets of 2.65%. This is comparable to the rest of the industry: LGIH outperforms 43.33% of its industry peers.
- Looking at the Return On Equity, with a value of 5.15%, LGIH is in line with its industry, outperforming 41.67% of the companies in the same industry.
- With a Return On Invested Capital value of 2.10%, LGIH is not doing good in the industry: 68.33% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for LGIH is below the industry average of 9.41%.
- The 3 year average ROIC (6.70%) for LGIH is well above the current ROIC(2.10%). The reason for the recent decline needs to be investigated.
| 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.
- LGIH's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 5.99%, LGIH perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of LGIH has declined.
- LGIH's Gross Margin of 22.19% is on the low side compared to the rest of the industry. LGIH is outperformed by 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.
- The number of shares outstanding for LGIH has been reduced compared to 1 year ago.
- LGIH has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, LGIH has a worse debt to assets ratio.
2.2 Solvency
- LGIH has an Altman-Z score of 2.68. 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 2.68. This is comparable to the rest of the industry: LGIH outperforms 45.00% of its industry peers.
- A Debt/Equity ratio of 0.85 indicates that LGIH is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.85, LGIH is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.68 |
ROIC/WACC0.22
WACC9.75%
2.3 Liquidity
- A Current Ratio of 21.56 indicates that LGIH has no problem at all paying its short term obligations.
- LGIH has a better Current ratio (21.56) 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.
- Looking at the Quick ratio, with a value of 0.48, LGIH is doing worse than 81.67% of the companies in the same industry.
| 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.
- Looking at the last year, LGIH shows a very negative growth in Revenue. The Revenue has decreased by -20.62% in the last year.
- 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
- The Earnings Per Share is expected to decrease by -13.79% on average over the next years. This is quite bad
- LGIH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.85% yearly.
EPS Next Y-58.91%
EPS Next 2Y-25.37%
EPS Next 3Y-13.79%
EPS Next 5YN/A
Revenue Next Year-22.83%
Revenue Next 2Y-4.33%
Revenue Next 3Y6.85%
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 10.99, which indicates a very decent valuation of LGIH.
- 75.00% 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 (28.18), we can say LGIH is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.65, the valuation of LGIH can be described as very reasonable.
- LGIH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LGIH is cheaper than 76.67% of the companies in the same industry.
- LGIH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LGIH is valued a bit more expensive than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.77 |
4.3 Compensation for Growth
- A cheap valuation may be justified as LGIH's earnings are expected to decrease with -13.79% in the coming years.
PEG (NY)N/A
PEG (5Y)3.17
EPS Next 2Y-25.37%
EPS Next 3Y-13.79%
5. Dividend
5.1 Amount
- No dividends for LGIH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
53.86
+3.66 (+7.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-17 2026-02-17/bmo
Inst Owners90.74%
Inst Owner Change-2.32%
Ins Owners12.52%
Ins Owner Change0.5%
Market Cap1.24B
Revenue(TTM)1.79B
Net Income(TTM)106.99M
Analysts73.33
Price Target76.5 (42.03%)
Short Float %N/A
Short RatioN/A
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)2.74%
PT rev (3m)0.4%
EPS NQ rev (1m)-7.79%
EPS NQ rev (3m)-18.63%
EPS NY rev (1m)-2.44%
EPS NY rev (3m)-9.75%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)4.94%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 11.65 | ||
| P/S | 0.69 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.6 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 25.77 |
EPS(TTM)4.9
EY9.1%
EPS(NY)4.62
Fwd EY8.58%
FCF(TTM)-7.43
FCFYN/A
OCF(TTM)-7.37
OCFYN/A
SpS77.51
BVpS90.12
TBVpS89.6
PEG (NY)N/A
PEG (5Y)3.17
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 | 2.68 |
F-Score3
WACC9.75%
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-58.91%
EPS Next 2Y-25.37%
EPS Next 3Y-13.79%
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-22.83%
Revenue Next 2Y-4.33%
Revenue Next 3Y6.85%
Revenue Next 5YN/A
EBIT growth 1Y-52.6%
EBIT growth 3Y-27.12%
EBIT growth 5Y-1.41%
EBIT Next Year-42.48%
EBIT Next 3Y-5.38%
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 -58.91% 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%.