Latest Ratios: P/E Ratio 15.4x · EV/EBITDA 32.3x · ROE 3.5%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.1B | $999M | $2.1B | $3.1B | $2.2B | $3.8B | $2.7B | $1.8B | $1.1B | $1.8B | $633M |
| Enterprise Value | $2.7B | $2.6B | $3.6B | $4.6B | $3.6B | $4.6B | $3.5B | $2.5B | $1.7B | $2.2B | $984M |
| P/E Ratio → | 15.43 | 13.77 | 10.77 | 15.81 | 6.73 | 8.96 | 8.30 | 10.06 | 7.25 | 15.86 | 8.43 |
| P/S Ratio | 0.66 | 0.59 | 0.96 | 1.34 | 0.95 | 1.26 | 1.13 | 0.98 | 0.75 | 1.43 | 0.75 |
| P/B Ratio | 0.53 | 0.48 | 1.04 | 1.70 | 1.34 | 2.76 | 2.36 | 2.13 | 1.72 | 3.67 | 1.78 |
| P/FCF | — | — | — | — | — | 192.68 | 13.47 | — | — | — | — |
| P/OCF | — | — | — | — | — | 177.32 | 13.29 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.52 | 1.63 | 1.93 | 1.55 | 1.51 | 1.47 | 1.34 | 1.15 | 1.75 | 1.17 |
| EV / EBITDA | 32.27 | 30.85 | 16.64 | 19.36 | 9.12 | 8.40 | 9.55 | 10.76 | 8.63 | 12.92 | 8.74 |
| EV / EBIT | 34.02 | 26.34 | 13.83 | 17.43 | 8.54 | 8.49 | 9.45 | 10.63 | 8.60 | 12.96 | 8.79 |
| EV / FCF | — | — | — | — | — | 230.73 | 17.50 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 20.7% | 20.7% | 24.2% | 23.0% | 28.1% | 26.8% | 25.5% | 23.7% | 25.3% | 25.5% | 26.4% |
| Operating Margin | 4.7% | 4.7% | 9.6% | 9.9% | 16.9% | 18.0% | 15.4% | 12.4% | 13.3% | 13.5% | 13.3% |
| Net Profit Margin | 4.3% | 4.3% | 8.9% | 8.4% | 14.2% | 14.1% | 13.7% | 9.7% | 10.3% | 9.0% | 9.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.5% | 3.5% | 10.1% | 11.4% | 21.5% | 33.9% | 32.6% | 23.8% | 27.1% | 26.8% | 24.9% |
| ROA | 1.9% | 1.9% | 5.5% | 6.1% | 11.9% | 20.6% | 18.5% | 11.7% | 12.5% | 12.0% | 10.4% |
| ROIC | 1.7% | 1.7% | 4.7% | 5.6% | 11.3% | 20.0% | 15.9% | 12.3% | 13.9% | 15.9% | 13.7% |
| ROCE | 2.1% | 2.1% | 6.2% | 7.5% | 14.9% | 27.3% | 24.1% | 17.6% | 17.6% | 19.7% | 17.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.79 | 0.79 | 0.75 | 0.79 | 0.86 | 0.58 | 0.74 | 0.82 | 1.00 | 0.97 | 1.13 |
| Debt / EBITDA | 19.70 | 19.70 | 7.08 | 6.20 | 3.59 | 1.48 | 2.30 | 3.05 | 3.26 | 2.79 | 3.56 |
| Net Debt / Equity | — | 0.76 | 0.72 | 0.76 | 0.84 | 0.54 | 0.71 | 0.78 | 0.93 | 0.83 | 0.99 |
| Net Debt / EBITDA | 18.97 | 18.97 | 6.83 | 6.00 | 3.51 | 1.38 | 2.20 | 2.88 | 3.02 | 2.39 | 3.12 |
| Debt / FCF | — | — | — | — | — | 38.06 | 4.03 | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 223.39 | 223.39 | 25.16 | 24.41 | 18.84 | 26.80 | 21.34 | 4.15 | 15.36 | 8.98 | 13.37 |
| Quick Ratio | 5.79 | 5.79 | 0.59 | 0.69 | 0.36 | 1.32 | 1.88 | 0.25 | 1.04 | 0.98 | 1.13 |
| Cash Ratio | 3.79 | 3.79 | 0.39 | 0.37 | 0.20 | 0.62 | 0.45 | 0.10 | 0.54 | 0.59 | 0.84 |
| Asset Turnover | — | 0.43 | 0.59 | 0.69 | 0.74 | 1.30 | 1.30 | 1.10 | 1.08 | 1.16 | 1.03 |
| Inventory Turnover | 0.38 | 0.38 | 0.49 | 0.58 | 0.57 | 1.07 | 1.12 | 0.93 | 0.92 | 1.02 | 0.86 |
| Days Sales Outstanding | — | 6.95 | 4.76 | 6.39 | 3.98 | 6.93 | 17.87 | 11.20 | 10.39 | 12.97 | 7.43 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.5% | 7.3% | 9.3% | 6.3% | 14.9% | 11.2% | 12.1% | 9.9% | 13.8% | 6.3% | 11.9% |
| FCF Yield | — | — | — | — | — | 0.5% | 7.4% | — | — | — | — |
| Buyback Yield | 2.1% | 2.4% | 1.5% | 0.0% | 4.3% | 5.0% | 1.8% | 0.0% | 0.1% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.1% | 2.4% | 1.5% | 0.0% | 4.3% | 5.0% | 1.8% | 0.0% | 0.1% | 0.0% | 0.0% |
| Shares Outstanding | — | $23M | $24M | $24M | $24M | $25M | $25M | $25M | $25M | $24M | $22M |
Includes 30+ ratios · 15 years · Updated daily
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Quick answers to the most common questions about buying LGIH stock.
LGI Homes, Inc.'s current P/E ratio is 15.4x. The historical average is 11.0x. This places it at the 77th percentile of its historical range.
LGI Homes, Inc.'s current EV/EBITDA is 32.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
LGI Homes, Inc.'s return on equity (ROE) is 3.5%. The historical average is 23.4%.
Based on historical data, LGI Homes, Inc. is trading at a P/E of 15.4x. This is at the 77th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
LGI Homes, Inc. has 20.7% gross margin and 4.7% operating margin.
LGI Homes, Inc.'s Debt/EBITDA ratio is 19.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Inventory overhang and margin compression
Metrics are mathematically derived from official filings.
Margin Compression Persists Amid Volume Decline
Gross margin fell to 19.7% in Q2 2026 from 22.9% a year earlier, while operating margin halved to 5.6%, according to the latest quarterly report. This suggests pricing power remains constrained.
The sequential improvement from Q1's operating loss is encouraging, but the year-over-year decline indicates that incentive costs and fixed overhead are absorbing a larger share of revenue. With net margin at 5.2%, the company's earning power is materially below the 9-10% range seen in mid-2024, implying that the current cost structure is not aligned with the reduced demand environment. Investors should monitor whether gross margin can stabilize above 20% as volume recovers, as this is critical for restoring profitability.
Returns on Capital Remain Depressed
ROIC was just 0.6% in Q2 2026, down from 1.5% in Q2 2024, while ROE fell to 1.3% from 3.1%, based on reported figures. This suggests capital efficiency has deteriorated sharply.
The decline in ROIC is driven by both lower margins and a slower asset turnover, as the company's investment in land and inventory has not generated proportional revenue. The asset turnover of 0.13x in Q2 2026 is roughly half the 0.17x seen in mid-2024, indicating that the asset base is growing faster than sales. Unless absorption rates recover and inventory turns improve, returns on capital are likely to remain below the cost of capital, which would justify the current low P/B multiple of 0.67.
Working Capital Cycle Stretched by Inventory
Cash conversion cycle ballooned to 771 days in Q2 2026, up from 658 days a year earlier, as DIO surged to 775 days, according to the latest financials. This indicates a significant inventory overhang.
The extreme DIO reflects the company's spec-heavy model, where homes are built before buyers are secured, and in a slow sales environment, finished inventory sits longer. The CCC is far above the peer average, suggesting that LGIH is tying up more cash in unsold homes than its competitors. This inefficiency not only strains liquidity but also increases the risk of price cuts to clear inventory, which would further compress margins.
Leverage Appears Manageable but Inventory Risk Looms
Debt-to-equity stood at 0.74 in Q2 2026, with interest coverage not reported, but D/EBITDA of 43.3x suggests EBITDA has collapsed, per the balance sheet. This implies debt service may be less comfortable than the D/E suggests.
While the D/E ratio is moderate, the extremely high D/EBITDA indicates that earnings before interest, taxes, depreciation, and amortization have fallen sharply, making interest coverage potentially thin. The company's debt has risen to $1.6B, and with operating margins compressed, the ability to service debt from operations is weakened. However, the current ratio of 18.06 and quick ratio of 0.57 suggest that liquidity is heavily dependent on inventory, which may not be easily converted to cash in a downturn.
Liquidity Relies on Inventory Turnover
Current ratio spiked to 18.06 in Q2 2026, but quick ratio was only 0.57, indicating that most current assets are inventory, as reported in the balance sheet. This suggests liquidity is vulnerable if sales stall.
The high current ratio is misleading because it is driven by a massive build-up of inventory, which is not readily convertible to cash without price concessions. The quick ratio below 1.0 indicates that the company would struggle to meet short-term obligations if inventory sales were to halt. Given the cyclical nature of homebuilding and the current high-rate environment, the liquidity position appears adequate only under normal conditions, but it would be severely tested in a prolonged downturn.
P/E Misleads on Cyclical Earnings
The trailing P/E of 19.24 appears reasonable, but it is based on depressed earnings; forward P/E of 18.44 implies a recovery that may not materialize, according to market data. This multiple obscures the cyclicality of earnings.
For homebuilders, P/E ratios are often misleading because earnings are highly cyclical and can swing from losses to record profits. LGIH's current P/E is elevated relative to peers like DHI (13.06) and PHM (11.95), but this may reflect the market's expectation of an earnings rebound. A more appropriate metric is P/B, which at 0.67 suggests the market is valuing the company below its book value, possibly due to concerns about inventory write-downs. Investors should focus on price-to-tangible book value and normalized earnings power rather than trailing P/E, which is distorted by the cyclical trough.