49.88 USD
-0.26 (-0.52%)
49.88 USD
0 (0%)
Overall LGIH gets a fundamental rating of 3 out of 10. We evaluated LGIH against 60 industry peers in the Household Durables industry. LGIH has a bad profitability rating. Also its financial health evaluation is rather negative. 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
- The Return On Assets of LGIH (2.65%) is comparable to the rest of the industry.
- With a Return On Equity value of 5.15%, LGIH perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for LGIH is below the industry average of 9.70%.
- 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 better Profit Margin (5.98%) than 63.33% of its industry peers.
- LGIH's Profit Margin has declined in the last couple of years.
- 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.
- 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.
- 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.
- LGIH has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LGIH has less shares outstanding
- The debt/assets ratio for LGIH is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.68 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- LGIH has a Altman-Z score (2.68) which is comparable to the rest of the industry.
- 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 | 2.68 |
ROIC/WACC0.22
WACC9.55%
2.3 Liquidity
- A Current Ratio of 21.56 indicates that LGIH has no problem at all paying its short term obligations.
- LGIH's Current ratio of 21.56 is amongst the best of the industry. LGIH outperforms 100.00% of its industry peers.
- LGIH has a Quick Ratio of 21.56. This is a bad value and indicates that LGIH is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.48, LGIH is doing worse than 78.33% of the companies in the same industry.
| 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 very negative growth in Earnings Per Share. The EPS will decrease by -13.79% on average per year.
- Based on estimates for the next years, LGIH will show a small growth in Revenue. The Revenue will grow by 6.85% on average per year.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- LGIH is valuated reasonably with a Price/Earnings ratio of 10.18.
- Compared to the rest of the industry, the Price/Earnings ratio of LGIH indicates a somewhat cheap valuation: LGIH is cheaper than 75.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of LGIH to the average of the S&P500 Index (28.60), we can say LGIH is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.79, the valuation of LGIH can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, LGIH is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. LGIH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 10.79 |
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 | 25.7 |
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)2.94
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% |
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%.