LGI Homes, Inc. (LGIH) 10-Year Financial Performance & Capital Metrics

LGIH • • Industrial / General

Consumer CyclicalHomebuildersTraditional Site-Built HomebuildersEntry-Level & First-Time Buyer Specialists

AboutLGI Homes, Inc. designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to companies looking to acquire single-family rental properties. As of December 31, 2021, it owned 101 communities. The company serves customers in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, and Pennsylvania. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.Show more

Revenue $2.2B -6.6%
EBITDA $215M -8.7%
Net Income $196M -1.6%
EPS (Diluted) 8.30 -1.4%
Gross Margin 24.21% +5.3%
EBITDA Margin 9.77% -2.2%
Operating Margin 9.63% -2.6%
Net Margin 8.9% +5.4%
ROE 10.07% -11.6%
ROIC 4.7% -15.7%
Debt/Equity 0.75 -5.0%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Healthy 5Y average net margin of 11.9%
✓Trading at only 0.6x book value

✗Weaknesses

✗Negative free cash flow
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y19.11%

5Y3.68%

3Y-10.28%

TTM-20.62%

Profit (Net Income) CAGR

10Y21.39%

5Y1.88%

3Y-23.01%

TTM-46.22%

EPS CAGR

10Y20.09%

5Y3.41%

3Y-21.64%

TTM-45.68%

ROCE

10Y Avg16.84%

5Y Avg15.98%

3Y Avg9.51%

Latest6.15%

Peer Comparison

Entry-Level & First-Time Buyer Specialists

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MTHMeritage Homes Corporation	5.51B	78.25	7.30	4.18%	8.97%	10.24%		0.27
CCSCentury Communities, Inc.	2.03B	69.13	6.65	19.12%	5.16%	8.32%	4.27%	0.56
LGIHLGI Homes, Inc.	1.25B	54.27	6.54	-6.61%	5.93%	5.1%		0.75
DFHDream Finders Homes, Inc.	711.08M	20.30	6.32	18.75%	6.16%	18.53%		0.92

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	630.24M	838.32M	1.26B	1.5B	1.84B	2.37B	3.05B	2.3B	2.36B	2.2B
Revenue Growth %	0.64%	0.33%	0.5%	0.2%	0.22%	0.29%	0.29%	-0.24%	0.02%	-0.07%
Cost of Goods Sold+	463.3M	616.71M	937.54M	1.12B	1.4B	1.76B	2.23B	1.66B	1.82B	1.67B
COGS % of Revenue	0.74%	0.74%	0.75%	0.75%	0.76%	0.75%	0.73%	0.72%	0.77%	0.76%
Gross Profit+	166.93M	221.61M	320.42M	379.92M	436.48M	603.1M	818.03M	646.6M	542.19M	533.29M
Gross Margin %	0.26%	0.26%	0.25%	0.25%	0.24%	0.25%	0.27%	0.28%	0.23%	0.24%
Gross Profit Growth %	0.62%	0.33%	0.45%	0.19%	0.15%	0.38%	0.36%	-0.21%	-0.16%	-0.02%
Operating Expenses+	87.26M	110.14M	150.62M	179.81M	208.94M	238.39M	270.34M	256.49M	308.93M	321.14M
OpEx % of Revenue	0.14%	0.13%	0.12%	0.12%	0.11%	0.1%	0.09%	0.11%	0.13%	0.15%
Selling, General & Admin	87.26M	110.14M	150.62M	179.81M	208.94M	238.39M	270.34M	256.49M	308.93M	321.14M
SG&A % of Revenue	0.14%	0.13%	0.12%	0.12%	0.11%	0.1%	0.09%	0.11%	0.13%	0.15%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	606K	0	0	0	0	0	0	0	0	0
Operating Income+	79.67M	111.47M	169.8M	200.11M	227.54M	364.71M	547.7M	390.11M	233.25M	212.15M
Operating Margin %	0.13%	0.13%	0.13%	0.13%	0.12%	0.15%	0.18%	0.17%	0.1%	0.1%
Operating Income Growth %	0.88%	0.4%	0.52%	0.18%	0.14%	0.6%	0.5%	-0.29%	-0.4%	-0.09%
EBITDA+	80.56M	112.56M	170.59M	200.82M	228.18M	365.42M	548.85M	391.68M	235.66M	215.25M
EBITDA Margin %	0.13%	0.13%	0.14%	0.13%	0.12%	0.15%	0.18%	0.17%	0.1%	0.1%
EBITDA Growth %	0.86%	0.4%	0.52%	0.18%	0.14%	0.6%	0.5%	-0.29%	-0.4%	-0.09%
D&A (Non-Cash Add-back)	883K	1.09M	791K	711K	643K	710K	1.15M	1.58M	2.41M	3.11M
EBIT	81.81M	111.96M	170.05M	201.52M	230.86M	369.58M	547.7M	390.11M	233.25M	258.91M
Net Interest Income+	0	0	0	0	0	0	0	0	0	0
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	606K	2.2M	1.6M	-1.01M	4.29M	3.14M	-4.92M	28.01M	28.5M	46.77M
Pretax Income+	80.28M	113.67M	171.4M	199.1M	231.83M	367.85M	542.77M	418.12M	261.75M	258.91M
Pretax Margin %	0.13%	0.14%	0.14%	0.13%	0.13%	0.16%	0.18%	0.18%	0.11%	0.12%
Income Tax+	27.45M	38.64M	58.1M	43.81M	53.22M	43.95M	113.13M	91.55M	62.53M	62.84M
Effective Tax Rate %	0.66%	0.66%	0.66%	0.78%	0.77%	0.88%	0.79%	0.78%	0.76%	0.76%
Net Income+	52.83M	75.03M	113.31M	155.29M	178.61M	323.89M	429.64M	326.57M	199.23M	196.07M
Net Margin %	0.08%	0.09%	0.09%	0.1%	0.1%	0.14%	0.14%	0.14%	0.08%	0.09%
Net Income Growth %	0.87%	0.42%	0.51%	0.37%	0.15%	0.81%	0.33%	-0.24%	-0.39%	-0.02%
Net Income (Continuing)	52.83M	75.03M	113.31M	155.29M	178.61M	323.89M	429.64M	326.57M	199.23M	196.07M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	2.44	3.41	4.73	6.24	7.02	12.76	17.25	13.76	8.42	8.30
EPS Growth %	0.83%	0.4%	0.39%	0.32%	0.13%	0.82%	0.35%	-0.2%	-0.39%	-0.01%
EPS (Basic)	2.65	3.61	5.24	6.24	7.70	12.89	17.46	13.90	8.48	8.33
Diluted Shares Outstanding	21.74M	22.02M	23.93M	24.89M	25.43M	25.38M	24.91M	23.73M	23.65M	23.61M
Basic Shares Outstanding	19.94M	20.8M	21.6M	24.89M	23.19M	25.14M	24.61M	23.49M	23.51M	23.53M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	586.12M	784.25M	1.03B	1.32B	1.59B	1.72B	2.19B	2.96B	3.2B	3.47B
Cash & Short-Term Investments	37.57M	49.52M	67.57M	46.62M	38.34M	35.94M	50.51M	32M	48.98M	53.2M
Cash Only	37.57M	49.52M	67.57M	46.62M	38.34M	35.94M	50.51M	32M	48.98M	53.2M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	17.32M	17.05M	44.71M	42.84M	56.39M	115.94M	57.91M	25.14M	41.32M	28.72M
Days Sales Outstanding	10.03	7.43	12.97	10.39	11.2	17.87	6.93	3.98	6.39	4.76
Inventory	531.23M	717.68M	918.93M	1.23B	1.5B	1.57B	2.09B	2.9B	3.11B	3.39B
Days Inventory Outstanding	418.51	424.76	357.76	398.68	390.51	324.6	341.09	638.1	624.47	740.76
Other Current Assets	-7M	-3M	-7.5M	-12.1M	-37.24M	0	0	0	0	0
Total Non-Current Assets+	36.21M	30.26M	48.68M	77.76M	71.76M	104.72M	157.54M	169.39M	209.91M	288.77M
Property, Plant & Equipment	2.11M	1.96M	1.67M	1.43M	1.63M	3.62M	16.94M	33M	45.52M	57.04M
Fixed Asset Turnover	298.97x	427.71x	751.47x	1050.56x	1126.32x	654.49x	180.01x	69.84x	51.81x	38.62x
Goodwill	12M	12.02M	12.02M	12.02M	12.02M	12.02M	12.02M	12.02M	12.02M	12.02M
Intangible Assets	234K	0	0	0	0	0	0	0	0	0
Long-Term Investments	-2.58M	-3.45M	18.87M	45.75M	0	0	0	0	0	0
Other Non-Current Assets	21.87M	16.28M	14.2M	15.77M	53.48M	82.09M	122.38M	118.19M	144.2M	210.44M
Total Assets+	622.33M	814.51M	1.08B	1.4B	1.67B	1.83B	2.35B	3.12B	3.41B	3.76B
Asset Turnover	1.01x	1.03x	1.16x	1.08x	1.10x	1.30x	1.30x	0.74x	0.69x	0.59x
Asset Growth %	0.42%	0.31%	0.33%	0.29%	0.19%	0.1%	0.29%	0.33%	0.09%	0.1%
Total Current Liabilities+	64.03M	58.67M	114.85M	85.8M	384.43M	80.65M	81.86M	156.91M	131.03M	137.93M
Accounts Payable	24.02M	12.28M	12.02M	9.24M	48.37M	43.61M	62.83M	25.29M	31.62M	33.27M
Days Payables Outstanding	18.92	7.27	4.68	3	12.59	9.02	10.27	5.57	6.35	7.27
Short-Term Debt	0	0	0	0	296.03M	296.68M	0	141.79M	104.46M	0
Deferred Revenue (Current)	0	0	0	-1000K	0	0	0	0	0	0
Other Current Liabilities	-12.63M	36.94M	48.39M	323.45M	0	-296.68M	0	-141.79M	-104.46M	0
Current Ratio	9.15x	13.37x	8.98x	15.36x	4.15x	21.34x	26.80x	18.84x	24.41x	25.16x
Quick Ratio	0.86x	1.13x	0.98x	1.04x	0.25x	1.88x	1.32x	0.36x	0.69x	0.59x
Cash Conversion Cycle	409.62	424.92	366.05	406.08	389.11	333.45	337.75	636.52	624.52	738.25
Total Non-Current Liabilities+	310.92M	400.65M	475.19M	653.73M	436.49M	606.43M	874.15M	1.33B	1.42B	1.58B
Long-Term Debt	304.56M	400.48M	475.19M	653.73M	394.53M	538.4M	805.24M	1.26B	1.35B	1.52B
Capital Lease Obligations	0	0	0	0	5.64M	5.29M	5.33M	5.18M	4.95M	6.13M
Deferred Tax Liabilities	2.73M	164K	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	43.64M	0	35.09M	0	36.31M	62.75M	63.59M	61.53M	63.06M	59.39M
Total Liabilities	374.94M	459.31M	590.05M	739.53M	820.92M	687.08M	956.02M	1.48B	1.55B	1.72B
Total Debt+	308.19M	400.48M	475.19M	653.73M	696.2M	840.37M	810.57M	1.41B	1.46B	1.52B
Net Debt	270.62M	350.96M	407.62M	607.11M	657.86M	804.42M	760.05M	1.37B	1.41B	1.47B
Debt / Equity	1.25x	1.13x	0.97x	1.00x	0.82x	0.74x	0.58x	0.86x	0.79x	0.75x
Debt / EBITDA	3.83x	3.56x	2.79x	3.26x	3.05x	2.30x	1.48x	3.59x	6.20x	7.08x
Net Debt / EBITDA	3.36x	3.12x	2.39x	3.02x	2.88x	2.20x	1.38x	3.51x	6.00x	6.83x
Interest Coverage	-	-	-	-	-	-	-	-	-	-
Total Equity+	247.39M	355.2M	489.85M	655.94M	845.19M	1.14B	1.4B	1.64B	1.86B	2.04B
Equity Growth %	0.36%	0.44%	0.38%	0.34%	0.29%	0.35%	0.23%	0.18%	0.13%	0.1%
Book Value per Share	11.38	16.13	20.47	26.35	33.23	44.88	56.04	69.21	78.48	86.29
Total Shareholders' Equity	247.39M	355.2M	489.85M	655.94M	845.19M	1.14B	1.4B	1.64B	1.86B	2.04B
Common Stock	213K	223K	228K	237K	264K	267K	269K	272K	275K	276K
Retained Earnings	88.15M	163.18M	276.49M	431.77M	610.38M	934.28M	1.36B	1.69B	1.89B	2.09B
Treasury Stock	-16.55M	-16.55M	-16.55M	-18.06M	-18.06M	-66.14M	-259.92M	-355.02M	-355.02M	-386M
Accumulated OCI	-1.55M	-2.42M	-3.15M	-3.46M	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	-89.16M	-108.18M	-68.47M	-116.72M	-41.93M	202.16M	21.7M	-370.45M	-56.97M	-143.74M
Operating CF Margin %	-0.14%	-0.13%	-0.05%	-0.08%	-0.02%	0.09%	0.01%	-0.16%	-0.02%	-0.07%
Operating CF Growth %	0.49%	-0.21%	0.37%	-0.7%	0.64%	5.82%	-0.89%	-18.07%	0.85%	-1.52%
Net Income	52.83M	75.03M	113.31M	155.29M	178.61M	323.89M	429.64M	326.57M	199.23M	196.07M
Depreciation & Amortization	883K	1.09M	791K	711K	643K	710K	1.15M	1.58M	2.41M	3.11M
Stock-Based Compensation	2.28M	3.4M	4.19M	5.94M	7.54M	13.52M	13.6M	9.19M	8.93M	10.48M
Deferred Taxes	42K	-2.56M	-2.09M	-724K	-1.83M	-2.37M	788K	12K	-1.98M	-1.11M
Other Non-Cash Items	-47K	-137K	13K	3.59M	206K	-4K	13.26M	-10.18M	357K	-12.94M
Working Capital Changes	-145.14M	-185M	-184.67M	-281.53M	-227.1M	-133.59M	-436.74M	-697.62M	-265.91M	-339.35M
Change in Receivables	-9.96M	270K	-27.65M	1.87M	-13.55M	-59.55M	58.03M	32.77M	-16.18M	12.6M
Change in Inventory	-151.71M	-183.88M	-200.61M	-234.66M	-266.65M	-70.23M	-463.64M	-823.92M	-255.52M	-365.89M
Change in Payables	9.63M	-11.75M	-257K	-2.78M	3.25M	1.18M	-760K	11.12M	6.33M	1.66M
Cash from Investing+	-1.12M	-722K	-518K	-74.94M	-1.79M	-5.65M	-70.39M	-5.97M	-13.65M	15.62M
Capital Expenditures	-1.12M	-722K	-518K	-475K	-734K	-2.69M	-1.73M	-1.19M	-1.44M	-1.95M
CapEx % of Revenue	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	0	0	0	-1.06M	-2.96M	-68.66M	-4.78M	-12.21M	17.57M
Cash from Financing+	96.47M	120.86M	87.04M	170.71M	35.45M	-198.91M	63.26M	357.9M	87.6M	132.34M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-3.72M	25.86M	12.04M	-6.95M	-2.98M	-2.15M	-20.89M	1.38M	-14.32M	-5.98M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	-90.27M	-108.91M	-68.98M	-117.2M	-42.67M	199.47M	19.97M	-371.64M	-58.41M	-145.69M
FCF Margin %	-0.14%	-0.13%	-0.05%	-0.08%	-0.02%	0.08%	0.01%	-0.16%	-0.02%	-0.07%
FCF Growth %	0.48%	-0.21%	0.37%	-0.7%	0.64%	5.67%	-0.9%	-19.61%	0.84%	-1.49%
FCF per Share	-4.15	-4.94	-2.88	-4.71	-1.68	7.86	0.80	-15.66	-2.47	-6.17
FCF Conversion (FCF/Net Income)	-1.69x	-1.44x	-0.60x	-0.75x	-0.23x	0.62x	0.05x	-1.13x	-0.29x	-0.73x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	24.58%	24.9%	26.82%	27.11%	23.8%	32.65%	33.9%	21.5%	11.39%	10.07%
Return on Invested Capital (ROIC)	13.5%	13.66%	15.88%	13.89%	12.34%	15.87%	20.04%	11.31%	5.57%	4.7%
Gross Margin	26.49%	26.44%	25.47%	25.25%	23.75%	25.47%	26.82%	28.06%	22.99%	24.21%
Net Margin	8.38%	8.95%	9.01%	10.32%	9.72%	13.68%	14.09%	14.17%	8.45%	8.9%
Debt / Equity	1.25x	1.13x	0.97x	1.00x	0.82x	0.74x	0.58x	0.86x	0.79x	0.75x
FCF Conversion	-1.69x	-1.44x	-0.60x	-0.75x	-0.23x	0.62x	0.05x	-1.13x	-0.29x	-0.73x
Revenue Growth	64.44%	33.02%	50.06%	19.59%	22.19%	28.82%	28.81%	-24.45%	2.35%	-6.61%

Revenue by Segment

	2017	2018	2019	2020	2021	2022	2023	2024
Retail	-	1.39B	1.71B	2.19B	2.7B	1.96B	2.16B	2.04B
Retail Growth	-	-	22.93%	27.83%	23.25%	-27.29%	9.79%	-5.46%
Wholesale	-	109.92M	123.88M	176.63M	349.28M	340.56M	202.34M	164.08M
Wholesale Growth	-	-	12.69%	42.58%	97.75%	-2.50%	-40.59%	-18.91%
Central Division	532.45M	-	-	-	-	-	-	-
Central Division Growth	-	-	-	-	-	-	-	-
Southwest Division	243.04M	-	-	-	-	-	-	-
Southwest Division Growth	-	-	-	-	-	-	-	-
Florida Division	199.73M	-	-	-	-	-	-	-
Florida Division Growth	-	-	-	-	-	-	-	-
Southeast Division	183.42M	-	-	-	-	-	-	-
Southeast Division Growth	-	-	-	-	-	-	-	-
Northwest Division	98.51M	-	-	-	-	-	-	-
Northwest Division Growth	-	-	-	-	-	-	-	-
Midwest Division	807K	-	-	-	-	-	-	-
Midwest Division Growth	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

LGI Homes, Inc. (LGIH) has a price-to-earnings (P/E) ratio of 6.5x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

LGI Homes, Inc. (LGIH) reported $1.79B in revenue for fiscal year 2024. This represents a 3446% increase from $50.5M in 2011.

LGI Homes, Inc. (LGIH) saw revenue decline by 6.6% over the past year.

Yes, LGI Homes, Inc. (LGIH) is profitable, generating $106.1M in net income for fiscal year 2024 (8.9% net margin).

Dividend & Returns

LGI Homes, Inc. (LGIH) has a return on equity (ROE) of 10.1%. This is reasonable for most industries.

LGI Homes, Inc. (LGIH) had negative free cash flow of $171.3M in fiscal year 2024, likely due to heavy capital investments.

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