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LGI Homes, Inc.

  • Market Cap: Small Cap
  • Industry: Furniture, Home Furnishing
  • ISIN: US50187T1060
  • NASDAQ: LGIH
USD
48.99
0.39 (0.8%)

Sep 24

NAS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
M.D.C. Holdings, Inc.
Skyline Champion Corp.
Frontdoor, Inc.
PulteGroup, Inc.
Toll Brothers, Inc.
NVR, Inc.
LGI Homes, Inc.
Taylor Morrison Home Corp.
Meritage Homes Corp.
KB Home
Tri Pointe Homes, Inc.

Why is LGI Homes, Inc. ?

1
Poor long term growth as Operating profit has grown by an annual rate -26.21% of over the last 5 years
2
Flat results in Jun 26
  • NET PROFIT(9M) At USD 46.47 MM has Grown at -46.22%
  • ROCE(HY) Lowest at 3.16%
  • INVENTORY TURNOVER RATIO(HY) Lowest at 0.38 times
3
With ROCE of 2.16%, it has a very expensive valuation with a 0.70 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 -10.37%, its profits have fallen by -63%
4
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -10.37% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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.
-9.5%
-0.80
59.84%
S&P 500
16.06%
1.20
13.17%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-6.35%
EBIT Growth (5y)
-26.21%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
3.92
Net Debt to Equity (avg)
0.77
Sales to Capital Employed (avg)
0.62
Tax Ratio
24.23%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
14.73%
ROE (avg)
19.25%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.46
EV to EBIT
32.23
EV to EBITDA
30.57
EV to Capital Employed
0.70
EV to Sales
1.51
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.16%
ROE (Latest)
3.46%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

7What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 132.56 MM

NET SALES(Q)

Highest at USD 516.05 MM

PRE-TAX PROFIT(Q)

At USD 36.59 MM has Grown at 50.76%

NET PROFIT(Q)

At USD 26.98 MM has Grown at 52.63%

-9What is not working for the Company
NET PROFIT(9M)

At USD 46.47 MM has Grown at -46.22%

ROCE(HY)

Lowest at 3.16%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.38 times

RAW MATERIAL COST(Y)

Grown by 14.49% (YoY

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

Operating Cash Flow
Highest at USD 132.56 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales
Highest at USD 516.05 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Net Sales
At USD 516.05 MM has Grown at 23.32%
over average net sales of the previous four periods of USD 418.46 MM
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit
At USD 36.59 MM has Grown at 50.76%
over average net sales of the previous four periods of USD 24.27 MM
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit
At USD 26.98 MM has Grown at 52.63%
over average net sales of the previous four periods of USD 17.68 MM
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

Depreciation
Highest at USD 1.33 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.

Inventory Turnover Ratio
Lowest at 0.38 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

Raw Material Cost
Grown by 14.49% (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

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