LGI HOMES INC (LGIH) Fundamental Analysis & Valuation

NASDAQ:LGIH • US50187T1060

Current stock price

45.77 USD
+2.21 (+5.07%)
Last:

This LGIH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

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 (1.85%) which is comparable to the rest of the industry.
  • LGIH's Return On Equity of 3.46% is on the low side compared to the rest of the industry. LGIH is outperformed by 60.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.57%, LGIH is doing worse than 70.00% of the companies in the same industry.
  • LGIH had an Average Return On Invested Capital over the past 3 years of 3.81%. This is significantly below the industry average of 9.09%.
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

  • The Profit Margin of LGIH (4.25%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of LGIH has declined.
  • Looking at the Operating Margin, with a value of 4.68%, LGIH is doing worse than 61.67% of the companies in the same industry.
  • LGIH's Operating Margin has declined in the last couple of years.
  • LGIH's Gross Margin of 20.73% is on the low side compared to the rest of the industry. LGIH is outperformed by 71.67% of its industry peers.
  • In the last couple of years the Gross Margin of LGIH has declined.
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.
  • 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.
  • The debt/assets ratio for LGIH is higher compared to a year ago.
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

  • An Altman-Z score of 2.66 indicates that LGIH is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of LGIH (2.66) is worse than 60.00% of its industry peers.
  • A Debt/Equity ratio of 0.79 indicates that 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 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF N/A
Altman-Z 2.66
ROIC/WACC0.16
WACC9.61%
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.
  • The Current ratio of LGIH (25.19) is better than 100.00% of its industry peers.
  • A Quick Ratio of 0.65 indicates that LGIH may have some problems paying its short term obligations.
  • LGIH's Quick ratio of 0.65 is on the low side compared to the rest of the industry. LGIH is outperformed by 71.67% 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.
  • LGIH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.44% yearly.
  • The Revenue for LGIH has decreased by -22.57% in the past year. This is quite bad
  • The Revenue has been decreasing by -6.35% on average over the past years.
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

  • Based on estimates for the next years, LGIH will show a decrease in Earnings Per Share. The EPS will decrease by -4.27% on average per year.
  • The Revenue is expected to grow by 8.57% 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 Year-0.06%
Revenue Next 2Y8.57%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • LGIH is valuated correctly with a Price/Earnings ratio of 12.30.
  • 70.00% of the companies in the same industry are more expensive than LGIH, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.89, LGIH is valued rather cheaply.
  • A Price/Forward Earnings ratio of 17.74 indicates a rather expensive valuation of LGIH.
  • LGIH's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of LGIH to the average of the S&P500 Index (38.50), we can say LGIH is valued rather cheaply.
Industry RankSector Rank
PE 12.3
Fwd PE 17.74
LGIH Price Earnings VS Forward Price EarningsLGIH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, LGIH is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 31.05
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

  • LGIH's earnings are expected to decrease with -4.27% in the coming years. This may justify a cheaper valuation.
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

  • No dividends for LGIH!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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LGIH Fundamentals: All Metrics, Ratios and Statistics

LGI HOMES INC

NASDAQ:LGIH (4/20/2026, 12:27:09 PM)

45.77

+2.21 (+5.07%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-17
Earnings (Next)04-28
Inst Owners88.88%
Inst Owner Change-0.25%
Ins Owners12.66%
Ins Owner Change0.66%
Market Cap1.06B
Revenue(TTM)1.71B
Net Income(TTM)72.55M
Analysts76
Price Target86.02 (87.94%)
Short Float %13.53%
Short Ratio5.58
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)0%
PT rev (3m)12.44%
EPS NQ rev (1m)-80.72%
EPS NQ rev (3m)-95.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-42.9%
Revenue NQ rev (1m)-2.49%
Revenue NQ rev (3m)-9.67%
Revenue NY rev (1m)-3.48%
Revenue NY rev (3m)-16.31%
Valuation
Industry RankSector Rank
PE 12.3
Fwd PE 17.74
P/S 0.62
P/FCF N/A
P/OCF N/A
P/B 0.51
P/tB 0.51
EV/EBITDA 31.05
EPS(TTM)3.72
EY8.13%
EPS(NY)2.58
Fwd EY5.64%
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 Number87.0965 (90.29%)
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 2.66
F-Score3
WACC9.61%
ROIC/WACC0.16
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 Year-0.06%
Revenue Next 2Y8.57%
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 3 / 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.


How profitable is LGI HOMES INC (LGIH) stock?

LGI HOMES INC (LGIH) has a profitability rating of 2 / 10.


Can you provide the PE and PB ratios for LGIH stock?

The Price/Earnings (PE) ratio for LGI HOMES INC (LGIH) is 12.3 and the Price/Book (PB) ratio is 0.51.


How financially healthy is LGI HOMES INC?

The financial health rating of LGI HOMES INC (LGIH) is 3 / 10.