LGI HOMES INC (LGIH) Stock Fundamental Analysis
USA - NASDAQ:LGIH - US50187T1060 - Common Stock
57.5 USD
-1.42 (-2.41%)
57.5 USD
0 (0%)
Taking everything into account, LGIH scores 3 out of 10 in our fundamental rating. LGIH was compared to 63 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.
LGIH had a negative operating cash flow in the past year.
LGIH had positive earnings in each of the past 5 years.
In multiple years LGIH reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 3.89%, LGIH perfoms like the industry average, outperforming 53.97% of the companies in the same industry.
LGIH has a Return On Equity of 7.58%. This is comparable to the rest of the industry: LGIH outperforms 47.62% of its industry peers.
The Return On Invested Capital of LGIH (3.28%) is worse than 63.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LGIH is below the industry average of 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.58% | ||
| ROIC | 3.28% |
ROA(3y)7.17%
ROA(5y)11.5%
ROE(3y)13.41%
ROE(5y)19.89%
ROIC(3y)6.71%
ROIC(5y)11.08%
1.3 Margins
LGIH's Profit Margin of 7.63% is fine compared to the rest of the industry. LGIH outperforms 65.08% of its industry peers.
In the last couple of years the Profit Margin of LGIH has declined.
LGIH has a Operating Margin (8.10%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LGIH has declined.
Looking at the Gross Margin, with a value of 23.25%, LGIH is doing worse than 65.08% of the companies in the same industry.
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 | 8.1% | ||
| PM (TTM) | 7.63% | ||
| GM | 23.25% |
OM growth 3Y-18.75%
OM growth 5Y-4.9%
PM growth 3Y-14.18%
PM growth 5Y-1.74%
GM growth 3Y-3.35%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LGIH 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 2.86 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
LGIH has a Altman-Z score (2.86) which is in line with its industry peers.
LGIH has a Debt/Equity ratio of 0.86. This is a neutral value indicating LGIH is somewhat dependend on debt financing.
LGIH has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: LGIH underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.86 |
ROIC/WACC0.35
WACC9.32%
2.3 Liquidity
LGIH has a Current Ratio of 21.95. 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 21.95, LGIH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LGIH has a Quick Ratio of 21.95. This is a bad value and indicates that LGIH is not financially healthy enough and could expect problems in meeting its short term obligations.
LGIH has a Quick ratio of 0.55. This is in the lower half of the industry: LGIH underperforms 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.95 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for LGIH have decreased strongly by -14.95% in the last year.
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 decrease in Revenue. The Revenue has decreased by -7.89% in the last year.
LGIH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.68% yearly.
EPS 1Y (TTM)-14.95%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-45.16%
Revenue 1Y (TTM)-7.89%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-19.75%
3.2 Future
LGIH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.71% yearly.
The Revenue is expected to grow by 9.11% on average over the next years. This is quite good.
EPS Next Y-51.85%
EPS Next 2Y-18.99%
EPS Next 3Y-11.71%
EPS Next 5YN/A
Revenue Next Year-21.16%
Revenue Next 2Y-4.65%
Revenue Next 3Y9.11%
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
With a Price/Earnings ratio of 8.21, the valuation of LGIH can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LGIH indicates a rather cheap valuation: LGIH is cheaper than 82.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LGIH to the average of the S&P500 Index (27.20), we can say LGIH is valued rather cheaply.
A Price/Forward Earnings ratio of 10.56 indicates a reasonable valuation of LGIH.
Based on the Price/Forward Earnings ratio, LGIH is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, LGIH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LGIH indicates a slightly more expensive valuation: LGIH is more expensive than 65.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.89 |
4.3 Compensation for Growth
A cheap valuation may be justified as LGIH's earnings are expected to decrease with -11.71% in the coming years.
PEG (NY)N/A
PEG (5Y)2.37
EPS Next 2Y-18.99%
EPS Next 3Y-11.71%
5. Dividend
5.1 Amount
LGIH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.5
-1.42 (-2.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.43%
Inst Owner Change5.46%
Ins Owners12.27%
Ins Owner Change0%
Market Cap1.33B
Analysts50.91
Price Target82.88 (44.14%)
Short Float %14.52%
Short Ratio7.32
Dividend
| Industry Rank | Sector 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)0
Avg EPS beat(2)-9.96%
Min EPS beat(2)-16.15%
Max EPS beat(2)-3.76%
EPS beat(4)1
Avg EPS beat(4)-2.29%
Min EPS beat(4)-16.15%
Max EPS beat(4)13.94%
EPS beat(8)3
Avg EPS beat(8)-2.34%
EPS beat(12)5
Avg EPS beat(12)-1.4%
EPS beat(16)9
Avg EPS beat(16)1.6%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-5.98%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-4.58%
Revenue beat(12)1
Avg Revenue beat(12)-4.59%
Revenue beat(16)4
Avg Revenue beat(16)-3.1%
PT rev (1m)-13.1%
PT rev (3m)-25%
EPS NQ rev (1m)-2.67%
EPS NQ rev (3m)-46.53%
EPS NY rev (1m)-28.21%
EPS NY rev (3m)-34.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-30.13%
Revenue NY rev (1m)-17.73%
Revenue NY rev (3m)-22.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 10.56 | ||
| P/S | 0.65 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 17.89 |
EPS(TTM)7
EY12.17%
EPS(NY)5.45
Fwd EY9.47%
FCF(TTM)-7.63
FCFYN/A
OCF(TTM)-7.56
OCFYN/A
SpS88.65
BVpS89.21
TBVpS88.69
PEG (NY)N/A
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.58% | ||
| ROCE | 4.32% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.44% | ||
| OM | 8.1% | ||
| PM (TTM) | 7.63% | ||
| GM | 23.25% | ||
| FCFM | N/A |
ROA(3y)7.17%
ROA(5y)11.5%
ROE(3y)13.41%
ROE(5y)19.89%
ROIC(3y)6.71%
ROIC(5y)11.08%
ROICexc(3y)6.8%
ROICexc(5y)11.29%
ROICexgc(3y)7.08%
ROICexgc(5y)11.73%
ROCE(3y)8.84%
ROCE(5y)14.59%
ROICexcg growth 3Y-37.81%
ROICexcg growth 5Y-16.06%
ROICexc growth 3Y-38.04%
ROICexc growth 5Y-16.69%
OM growth 3Y-18.75%
OM growth 5Y-4.9%
PM growth 3Y-14.18%
PM growth 5Y-1.74%
GM growth 3Y-3.35%
GM growth 5Y0.39%
F-Score3
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.41 | ||
| Cap/Depr | 44.04% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 21.95 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.86 |
F-Score3
WACC9.32%
ROIC/WACC0.35
Cap/Depr(3y)65.91%
Cap/Depr(5y)145.02%
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)-14.95%
EPS 3Y-21.62%
EPS 5Y3.47%
EPS Q2Q%-45.16%
EPS Next Y-51.85%
EPS Next 2Y-18.99%
EPS Next 3Y-11.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.89%
Revenue growth 3Y-10.28%
Revenue growth 5Y3.68%
Sales Q2Q%-19.75%
Revenue Next Year-21.16%
Revenue Next 2Y-4.65%
Revenue Next 3Y9.11%
Revenue Next 5YN/A
EBIT growth 1Y-27.46%
EBIT growth 3Y-27.11%
EBIT growth 5Y-1.4%
EBIT Next Year-12.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1080.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1110.26%
OCF growth 3YN/A
OCF growth 5YN/A