LGIH Stock Analysis: LGI Homes | NASDAQ
Residential Construction | NASDAQ, USA | Market Cap: 1.441m USD | 12M Return: 14.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 22.0M
EPS Trend: -81.6%
Qual. Beats: -1
Rev. Trend: -83.2%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
LGI Homes, Inc. (NASDAQ: LGIH) is a U.S.-based homebuilder founded in 2003 and headquartered in The Woodlands, Texas. The company designs, constructs, and sells new homes across 21 states, with a core focus on entry-level attached and detached housing marketed under the LGI Homes brand, active adult communities, and luxury homes offered through its Terrata Homes brand. In addition to its retail homebuilding operations, LGI Homes runs a wholesale segment that builds and sells homes in bulk to institutional buyers for use as single-family rental properties.
As a small-cap member of the Consumer Discretionary sector classified within the GICS Homebuilding sub-industry, LGI Homes operates in a cyclical industry highly sensitive to mortgage rates, consumer confidence, and land/labor costs. Its emphasis on affordable entry-level product positions the company to serve first-time and move-up buyers, while its bulk-sale channel reflects the broader institutional growth of the single-family rental asset class in the U.S. housing market.
- Mortgage rates ease, boosting entry-level housing demand
- Wholesale single-family rental sales lift institutional revenue mix
- Community count expansion supports sustained closing volume growth
| Net Income: 70.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA 2.73 > 1.0 |
| NWC/Revenue: 215.6% < 20% (prev 161.5%; Δ 54.05% < -1%) |
| CFO/TA -0.02 > 3% & CFO -68.4m > Net Income 70.7m |
| Net Debt (1.66b) to EBITDA (101.7m): 16.30 < 3 |
| Current Ratio: 94.55 > 1.5 & < 3 |
| Outstanding Shares: last quarter (23.2m) vs 12m ago -1.05% < -2% |
| Gross Margin: 20.30% > 18% (prev 23.84%; Δ -3.54% > 0.5%) |
| Asset Turnover: 42.38% > 50% (prev 55.63%; Δ -13.25% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.90 (Total Current Assets 3.65b - Total Current Liabilities 38.6m) / Total Assets 4.01b |
| B: 0.54 (Retained Earnings 2.16b / Total Assets 4.01b) |
| C: 0.02 (EBIT TTM 97.1m / Avg Total Assets 3.95b) |
| D: 1.10 (Book Value of Equity 2.10b / Total Liabilities 1.91b) |
| Altman-Z'' = 8.98 = AAA |
| DSRI: 2.68 (Receivables 45.0m/21.7m, Revenue 1.67b/2.16b) |
| GMI: 1.17 (GM 23.84% / 20.30%) |
| AQI: 1.20 (AQ_t 0.06 / AQ_t-1 0.05) |
| SGI: 0.77 (Revenue 1.67b / 2.16b) |
| TATA: 0.03 (NI 70.7m - CFO -68.4m) / TA 4.01b) |
| Beneish M = -1.53 (Cap -4..+1) = CCC |
As of July 07, 2026, the stock is trading at USD 59.74 with a total of 204,773 shares traded. Over the past week, the price has changed by -9.27%, over one month by +18.08%, over three months by +53.76% and over the past year by +14.52%.
Current recommended Stop Loss: 53.70 (which is 10.1% or 1.9 ATR below the current price).
LGI Homes has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold LGIH.
- StrongBuy: 0
- Buy: 1
- Hold: 4
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 93 | 55.7% |
P/E Trailing = 20.4046
P/E Forward = 18.797
P/S = 0.861
P/B = 0.6859
P/EG = 0.69
Revenue TTM = 1.67b USD
EBIT TTM = 97.1m USD
EBITDA TTM = 101.7m USD
Long Term Debt = 1.71b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 1.72b USD (corrected: LT Debt 1.71b + ST Debt none) + Leases 5.05m
Net Debt = 1.66b USD (calculated: Debt 1.72b - CCE 60.9m)
Enterprise Value = 3.10b USD (1.44b + Debt 1.72b - CCE 60.9m)
Interest Coverage Ratio = unknown (Ebit TTM 97.1m / Interest Expense TTM 0.0)
EV/FCF = -44.81x (Enterprise Value 3.10b / FCF TTM -69.2m)
FCF Yield = -2.23% (FCF TTM -69.2m / Enterprise Value 3.10b)
FCF Margin = -4.13% (FCF TTM -69.2m / Revenue TTM 1.67b)
Net Margin = 4.22% (Net Income TTM 70.7m / Revenue TTM 1.67b)
Gross Margin = 20.30% ((Revenue TTM 1.67b - Cost of Revenue TTM 1.33b) / Revenue TTM)
Gross Margin QoQ = 18.74% (prev 17.54%)
Tobins Q-Ratio = 0.77 (Enterprise Value 3.10b / Total Assets 4.01b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 1.72b)
Taxrate = 27.16% (26.4m / 97.1m)
NOPAT = 70.7m (EBIT 97.1m * (1 - 27.16%))
Current Ratio = 94.55 (Total Current Assets 3.65b / Total Current Liabilities 38.6m)
Debt / Equity = 0.82 (Debt 1.72b / totalStockholderEquity, last quarter 2.10b)
Debt / EBITDA = 16.30 (Net Debt 1.66b / EBITDA 101.7m)
Debt / FCF = -23.97 (negative FCF - burning cash) (Net Debt 1.66b / FCF TTM -69.2m)
Total Stockholder Equity = 2.08b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.79% (Net Income 70.7m / Total Assets 4.01b)
RoE = 3.39% (Net Income TTM 70.7m / Total Stockholder Equity 2.08b)
RoCE = 2.56% (EBIT 97.1m / Capital Employed (Equity 2.08b + L.T.Debt 1.71b))
RoIC = 1.81% (NOPAT 70.7m / Invested Capital 3.91b)
WACC = 4.65% (E(1.44b)/V(3.16b) * Re(10.19%) + D(1.72b)/V(3.16b) * Rd(0.0%) * (1-Tc(0.27)))
Discount Rate = 10.19% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -73.33 | Cagr: -0.81%
[DCF] Fair Price = unknown (Cash Flow -69.2m)
EPS Correlation: -81.64 | EPS CAGR: -27.70% | SUE: -0.89 | # QB: -1
Revenue Correlation: -83.20 | Revenue CAGR: -10.38% | SUE: -0.23 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.19 | Chg30d=+17.82% | Revisions=+25% | Analysts=1
EPS next Quarter (2026-09-30): EPS=1.01 | Chg30d=+16.09% | Revisions=+25% | Analysts=1
EPS current Year (2026-12-31): EPS=3.40 | Chg30d=+11.84% | Revisions=+25% | GrowthEPS=+1.8% | GrowthRev=+5.7%
EPS next Year (2027-12-31): EPS=3.98 | Chg30d=-1.49% | Revisions=-25% | GrowthEPS=+17.1% | GrowthRev=+12.2%