LGI HOMES INC (LGIH) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:LGIH • US50187T1060

58.45 USD
+4.59 (+8.52%)
At close: Feb 4, 2026
59.85 USD
+1.4 (+2.4%)
After Hours: 2/4/2026, 8:00:03 PM
Fundamental Rating

3

Taking everything into account, LGIH scores 3 out of 10 in our fundamental rating. LGIH was compared to 60 industry peers in the Household Durables industry. LGIH may be in some trouble as it scores bad on both profitability and health. LGIH is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

3

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.
  • 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.
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 0 200M -200M 400M

1.2 Ratios

  • With a Return On Assets value of 2.65%, LGIH perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
  • LGIH has a Return On Equity (5.15%) which is comparable to the rest of the industry.
  • 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.
  • LGIH had an Average Return On Invested Capital over the past 3 years of 6.70%. This is below the industry average of 9.41%.
  • 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 RankSector 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%
LGIH Yearly ROA, ROE, ROICLGIH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.98%, LGIH is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LGIH has declined.
  • LGIH has a Operating Margin (5.99%) which is comparable to the rest of the industry.
  • LGIH's Operating Margin has declined in the last couple of years.
  • 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 RankSector 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%
LGIH Yearly Profit, Operating, Gross MarginsLGIH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LGIH is destroying value.
  • LGIH has less shares outstanding than it did 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 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 1B 2B 3B

2.2 Solvency

  • LGIH has an Altman-Z score of 2.71. 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 (2.71) which is comparable to the rest of the industry.
  • 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 RankSector Rank
Debt/Equity 0.85
Debt/FCF N/A
Altman-Z 2.71
ROIC/WACC0.22
WACC9.73%
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 0 500M 1B 1.5B 2B

2.3 Liquidity

  • LGIH has a Current Ratio of 21.56. This indicates that LGIH is financially healthy and has no problem in meeting 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.
  • 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 RankSector Rank
Current Ratio 21.56
Quick Ratio 0.48
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 1B 2B 3B

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3

3. Growth

3.1 Past

  • The earnings per share for LGIH have decreased strongly by -41.25% in the last year.
  • The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
  • 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.
  • The Revenue is expected to grow by 6.85% on average over the next years.
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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 11.93, which indicates a very decent valuation of LGIH.
  • LGIH's Price/Earnings ratio is a bit cheaper when compared to the industry. LGIH is cheaper than 71.67% of the companies in the same industry.
  • LGIH is valuated cheaply when we compare the Price/Earnings ratio to 28.25, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of LGIH.
  • 73.33% of the companies in the same industry are more expensive than LGIH, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.50, LGIH is valued rather cheaply.
Industry RankSector Rank
PE 11.93
Fwd PE 12.64
LGIH Price Earnings VS Forward Price EarningsLGIH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 78.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.53
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 -13.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.44
EPS Next 2Y-25.37%
EPS Next 3Y-13.79%

More info and screens

0

5. Dividend

5.1 Amount

  • LGIH does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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LGI HOMES INC

NASDAQ:LGIH (2/4/2026, 8:00:03 PM)

After market: 59.85 +1.4 (+2.4%)

58.45

+4.59 (+8.52%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)11-04
Earnings (Next)02-17
Inst Owners90.74%
Inst Owner Change-2.32%
Ins Owners12.52%
Ins Owner Change0.5%
Market Cap1.35B
Revenue(TTM)1.79B
Net Income(TTM)106.99M
Analysts73.33
Price Target76.5 (30.88%)
Short Float %13.38%
Short Ratio7.26
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)-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 RankSector Rank
PE 11.93
Fwd PE 12.64
P/S 0.75
P/FCF N/A
P/OCF N/A
P/B 0.65
P/tB 0.65
EV/EBITDA 26.53
EPS(TTM)4.9
EY8.38%
EPS(NY)4.62
Fwd EY7.91%
FCF(TTM)-7.43
FCFYN/A
OCF(TTM)-7.37
OCFYN/A
SpS77.51
BVpS90.12
TBVpS89.6
PEG (NY)N/A
PEG (5Y)3.44
Graham Number99.68
Profitability
Industry RankSector 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 RankSector 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 2.71
F-Score3
WACC9.73%
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%.