NasdaqGS:LGIH

Stock Analysis Report

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Executive Summary

LGI Homes, Inc. designs, constructs, and sells homes in the United States.


Snowflake Analysis

Outstanding track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has LGI Homes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LGIH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.8%

LGIH

4.8%

US Consumer Durables

1.1%

US Market


1 Year Return

24.9%

LGIH

1.0%

US Consumer Durables

4.6%

US Market

Return vs Industry: LGIH exceeded the US Consumer Durables industry which returned 0.4% over the past year.

Return vs Market: LGIH exceeded the US Market which returned 4.1% over the past year.


Shareholder returns

LGIHIndustryMarket
7 Day5.8%4.8%1.1%
30 Day61.9%26.4%5.5%
90 Day10.0%-13.7%-4.9%
1 Year24.9%24.9%2.2%1.0%7.0%4.6%
3 Year162.8%162.8%-6.6%-10.6%28.6%20.1%
5 Year358.7%358.7%4.5%-1.6%52.5%35.3%

Price Volatility Vs. Market

How volatile is LGI Homes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LGI Homes undervalued compared to its fair value and its price relative to the market?

9.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LGIH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LGIH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LGIH is good value based on its PE Ratio (9.6x) compared to the Consumer Durables industry average (9.6x).

PE vs Market: LGIH is good value based on its PE Ratio (9.6x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: LGIH is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: LGIH is overvalued based on its PB Ratio (2.4x) compared to the US Consumer Durables industry average (1.2x).


Next Steps

Future Growth

How is LGI Homes forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGIH's forecast earnings growth (2.5% per year) is above the savings rate (2.2%).

Earnings vs Market: LGIH's earnings (2.5% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: LGIH's earnings are forecast to grow, but not significantly.

Revenue vs Market: LGIH's revenue (9.1% per year) is forecast to grow faster than the US market (8.9% per year).

High Growth Revenue: LGIH's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LGIH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has LGI Homes performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGIH has high quality earnings.

Growing Profit Margin: LGIH's current net profit margins (10.1%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: LGIH's earnings have grown significantly by 30.6% per year over the past 5 years.

Accelerating Growth: LGIH's earnings growth over the past year (38.8%) exceeds its 5-year average (30.6% per year).

Earnings vs Industry: LGIH earnings growth over the past year (38.8%) exceeded the Consumer Durables industry 10.1%.


Return on Equity

High ROE: LGIH's Return on Equity (23.6%) is considered high.


Next Steps

Financial Health

How is LGI Homes's financial position?


Financial Position Analysis

Short Term Liabilities: LGIH's short term assets ($1.6B) exceed its short term liabilities ($61.2M).

Long Term Liabilities: LGIH's short term assets ($1.6B) exceed its long term liabilities ($798.3M).


Debt to Equity History and Analysis

Debt Level: LGIH's debt to equity ratio (86.6%) is considered high.

Reducing Debt: LGIH's debt to equity ratio has reduced from 120.5% to 86.6% over the past 5 years.

Debt Coverage: LGIH's debt is not well covered by operating cash flow (6.7%).

Interest Coverage: Insufficient data to determine if LGIH's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is LGI Homes's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LGIH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LGIH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LGIH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LGIH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LGIH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

Eric Lipar (48yo)

11.33yrs

Tenure

US$4,256,526

Compensation

Mr. Eric Thomas Lipar has been the Chairman of LGI Homes, Inc. since July 2013 and has been its Chief Executive Officer since 2009. Mr. Lipar served as the President of LGI Homes, Inc. from 2003 to 2009. M ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD4.26M) is about average for companies of similar size in the US market ($USD4.91M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Lipar
Chairman & CEO11.33yrsUS$4.26m9.04% $193.0m
Michael Snider
President & COO11.33yrsUS$2.48m0.75% $16.0m
Charles Merdian
CFO & Treasurer10.33yrsUS$1.66m0.44% $9.3m
Rachel Eaton
Chief Marketing Officer6.92yrsUS$797.61k0.20% $4.3m
Jack Lipar
Executive Vice President of Acquisitions7.17yrsUS$860.93k0.32% $6.8m
Caitlin Stiles
Investor Relations Officer4.33yrsno datano data
Scott Garber
General Counsel & Corporate Secretary2.08yrsno data0.018% $385.3k
Chris Kelly
Southwest Division Presidentno datano datano data
Thomas Lipar
Managing Member of Certain Predecessor Entities18.33yrsUS$523.65kno data

8.8yrs

Average Tenure

48yo

Average Age

Experienced Management: LGIH's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Lipar
Chairman & CEO11.33yrsUS$4.26m9.04% $193.0m
Duncan Gage
Independent Director6.92yrsUS$185.07k0.21% $4.6m
Robert Vahradian
Independent Director6.92yrsUS$185.07k0.085% $1.8m
Steven Smith
Independent Director6.92yrsUS$195.07k0.13% $2.7m
Bryan Sansbury
Lead Independent Director6.92yrsUS$220.07k0.50% $10.7m
Ryan Edone
Independent Director5.5yrsUS$200.07k0.12% $2.5m
Laura Miller
Independent Director1.33yrsUS$285.11k0.016% $341.8k

6.9yrs

Average Tenure

54yo

Average Age

Experienced Board: LGIH's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LGIH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.


Top Shareholders

Company Information

LGI Homes, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LGI Homes, Inc.
  • Ticker: LGIH
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$2.135b
  • Shares outstanding: 25.07m
  • Website: https://www.lgihomes.com

Number of Employees


Location

  • LGI Homes, Inc.
  • 1450 Lake Robbins Drive
  • Suite 430
  • The Woodlands
  • Texas
  • 77380
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGIHNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDNov 2013
LG1DB (Deutsche Boerse AG)YesNew Common StockDEEURNov 2013
0JSILSE (London Stock Exchange)YesNew Common StockGBUSDNov 2013

Biography

LGI Homes, Inc. designs, constructs, and sells homes in the United States. It offers entry-level homes, such as detached and attached homes, and move-up homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. As of February 29, 2020, it owned 108 communities. The company serves in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, and Virginia. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 14:04
End of Day Share Price2020/05/26 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.