LGI Homes, Inc. (LGIH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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PulteGroup, Inc.

NVR, Inc.

Frontdoor, Inc.

Taylor Morrison Home Corp.

KB Home

Meritage Homes Corp.

Tri Pointe Homes, Inc.

LGI Homes, Inc.

Why is LGI Homes, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -9.29% of over the last 5 years

With a fall in EPS of -30.1%, the company declared Very Negative results in Jun 25

ROCE(HY) Lowest at 7.84%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.45 times
PRE-TAX PROFIT(Q) At USD 42.04 MM has Fallen at -30.38%

With ROCE of 5.36%, it has a very expensive valuation with a 0.79 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -53.70%, its profits have fallen by -3.3%

Below par performance in long term as well as near term

Along with generating -53.70% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is LGI Homes, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

LGI Homes, Inc.

-53.64%

-0.81

55.26%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.19%

EBIT Growth (5y)

-9.29%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

3.92

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.68

Tax Ratio

24.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

14.73%

ROE (avg)

19.25%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.62

EV to EBIT

14.70

EV to EBITDA

14.45

EV to Capital Employed

0.79

EV to Sales

1.32

PEG Ratio

Dividend Yield

ROCE (Latest)

5.36%

ROE (Latest)

8.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-20What is not working for the Company

ROCE(HY)

Lowest at 7.84%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.45 times

PRE-TAX PROFIT(Q)

At USD 42.04 MM has Fallen at -30.38%

NET PROFIT(Q)

At USD 31.53 MM has Fallen at -31.08%

RAW MATERIAL COST(Y)

Grown by 8.99% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 82.01 %

NET SALES(Q)

At USD 483.49 MM has Fallen at -10.6%

Here's what is working for LGI Homes, Inc.

Depreciation

Highest at USD 1.01 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for LGI Homes, Inc.

Pre-Tax Profit

At USD 42.04 MM has Fallen at -30.38%

over average net sales of the previous four periods of USD 60.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 31.53 MM has Fallen at -31.08%

over average net sales of the previous four periods of USD 45.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 0.45 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

At USD 483.49 MM has Fallen at -10.6%

over average net sales of the previous four periods of USD 540.79 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Debt-Equity Ratio

Highest at 82.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 8.99% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales