ScoreWhy 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
With a fall in Net Sales of -32.54%, the company declared Very Negative results in Mar 26
- The company has declared negative results for the last 5 consecutive quarters
- ROCE(HY) Lowest at 3.41%
- INVENTORY TURNOVER RATIO(HY) Lowest at 0.38 times
- RAW MATERIAL COST(Y) Grown by 11.21% (YoY)
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 13.28%, its profits have fallen by -63%
Real-Time Research ReportHow 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.
20.99%
-0.65
61.19%
S&P 500
20.78%
1.67
13.28%
Quality
Management Risk
Growth
Capital StructureQuality 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%
ValuationValuation Key Factors 
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%
TechnicalsTechnical 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
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD -68.37 MM
CASH AND EQV(HY)
Highest at USD 122.11 MM
-32What is not working for the Company
ROCE(HY)
Lowest at 3.41%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.38 times
RAW MATERIAL COST(Y)
Grown by 11.21% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 50.16 times
NET SALES(Q)
Lowest at USD 319.74 MM
OPERATING PROFIT(Q)
Lowest at USD 0.61 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.19 %
PRE-TAX PROFIT(Q)
Lowest at USD 4.32 MM
NET PROFIT(Q)
Lowest at USD 2.16 MM
EPS(Q)
Lowest at USD 0.09
Here's what is working for LGI Homes, Inc.
Operating Cash Flow
Highest at USD -68.37 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Cash and Eqv
Highest at USD 122.11 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for LGI Homes, Inc.
Net Sales
At USD 319.74 MM has Fallen at -25.01%
over average net sales of the previous four periods of USD 426.38 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (USD MM)
Pre-Tax Profit
At USD 4.32 MM has Fallen at -82.46%
over average net sales of the previous four periods of USD 24.62 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 2.16 MM has Fallen at -88.09%
over average net sales of the previous four periods of USD 18.14 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Inventory Turnover Ratio
Lowest at 0.38 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Sales
Lowest at USD 319.74 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit
Lowest at USD 0.61 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 0.19 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 4.32 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 2.16 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.09
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 50.16 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 11.21% (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
Non Operating Income
Highest at USD 1.13 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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