Is LGI Homes Stock a Good Investment?
LGI Homes Investment Advice | LGIH |
- Examine LGI Homes' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research LGI Homes' leadership team and their track record. Good management can help LGI Homes navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Household Durables space and any emerging trends that could impact LGI Homes' business and its evolving consumer preferences.
- Compare LGI Homes' performance and market position to its competitors. Analyze how LGI Homes is positioned in terms of product offerings, innovation, and market share.
- Check if LGI Homes pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about LGI Homes' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in LGI Homes stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if LGI Homes is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine LGI Homes Stock
Researching LGI Homes' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 12.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.06. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. LGI Homes has Price/Earnings To Growth (PEG) ratio of 0.69. The entity recorded earning per share (EPS) of 8.36. The firm had not issued any dividends in recent years.
To determine if LGI Homes is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding LGI Homes' research are outlined below:
| LGI Homes generated a negative expected return over the last 90 days | |
| LGI Homes currently holds about 41.97 M in cash with (56.97 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.8. | |
| Over 88.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: LGI Homes Upgraded by Seaport Res Ptn to Hold Rating - MarketBeat |
LGI Homes Quarterly Long Term Debt |
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LGI Homes uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in LGI Homes. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to LGI Homes' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact LGI Homes' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises LGI Homes' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2014-05-16 | 2014-03-31 | 0.17 | 0.25 | 0.08 | 47 | ||
2016-08-09 | 2016-06-30 | 0.87 | 0.96 | 0.09 | 10 | ||
2014-08-12 | 2014-06-30 | 0.33 | 0.43 | 0.1 | 30 | ||
2017-08-08 | 2017-06-30 | 1.26 | 1.39 | 0.13 | 10 | ||
2019-05-07 | 2019-03-31 | 0.88 | 0.73 | -0.15 | 17 | ||
2019-08-06 | 2019-06-30 | 1.63 | 1.82 | 0.19 | 11 | ||
2014-03-31 | 2013-12-31 | 0.15 | 0.34 | 0.19 | 126 | ||
2018-08-07 | 2018-06-30 | 1.68 | 1.9 | 0.22 | 13 |
LGI Homes Target Price Consensus
LGI target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. LGI Homes' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 6 | Hold |
Most LGI analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand LGI stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of LGI Homes, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationLGI Homes Target Price Projection
LGI Homes' current and average target prices are 92.92 and 110.50, respectively. The current price of LGI Homes is the price at which LGI Homes is currently trading. On the other hand, LGI Homes' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
LGI Homes Market Quote on 30th of January 2025
Target Price
Analyst Consensus On LGI Homes Target Price
LGI Homes Analyst Ratings
LGI Homes' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about LGI Homes stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of LGI Homes' financials, market performance, and future outlook by experienced professionals. LGI Homes' historical ratings below, therefore, can serve as a valuable tool for investors.Know LGI Homes' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as LGI Homes is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading LGI Homes backward and forwards among themselves. LGI Homes' institutional investor refers to the entity that pools money to purchase LGI Homes' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Charles Schwab Investment Management Inc | 2024-09-30 | 349.1 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 345.7 K | Anomaly Capital Management, Lp | 2024-09-30 | 335.4 K | Fmr Inc | 2024-09-30 | 298 K | Gilder Gagnon Howe & Co Llc | 2024-09-30 | 221.5 K | Northern Trust Corp | 2024-09-30 | 196.9 K | Tributary Capital Management, Llc | 2024-09-30 | 187.6 K | Goldman Sachs Group Inc | 2024-09-30 | 184.7 K | D. E. Shaw & Co Lp | 2024-09-30 | 160.5 K | Blackrock Inc | 2024-09-30 | 3.4 M | Vanguard Group Inc | 2024-09-30 | 2.2 M |
LGI Homes' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 2.11 B.Market Cap |
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LGI Homes' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.13 | |
| Return On Capital Employed | 0.08 | 0.08 | |
| Return On Assets | 0.07 | 0.13 | |
| Return On Equity | 0.11 | 0.12 |
Determining LGI Homes' profitability involves analyzing its financial statements and using various financial metrics to determine if LGI Homes is a good buy. For example, gross profit margin measures LGI Homes' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of LGI Homes' profitability and make more informed investment decisions.
Evaluate LGI Homes' management efficiency
LGI Homes has return on total asset (ROA) of 0.0402 % which means that it generated a profit of $0.0402 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1039 %, meaning that it created $0.1039 on every $100 dollars invested by stockholders. LGI Homes' management efficiency ratios could be used to measure how well LGI Homes manages its routine affairs as well as how well it operates its assets and liabilities. As of now, LGI Homes' Return On Tangible Assets are decreasing as compared to previous years. The LGI Homes' current Return On Assets is estimated to increase to 0.13, while Return On Capital Employed is projected to decrease to 0.08. As of now, LGI Homes' Total Current Assets are increasing as compared to previous years. The LGI Homes' current Net Tangible Assets is estimated to increase to about 2 B, while Other Assets are projected to decrease to 1.09.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 71.06 | 74.61 | |
| Tangible Book Value Per Share | 70.60 | 74.13 | |
| Enterprise Value Over EBITDA | 21.66 | 12.58 | |
| Price Book Value Ratio | 1.94 | 2.86 | |
| Enterprise Value Multiple | 21.66 | 12.58 | |
| Price Fair Value | 1.94 | 2.86 | |
| Enterprise Value | 4 B | 4.2 B |
The operational strategies employed by LGI Homes management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Beta 1.978 |
Basic technical analysis of LGI Stock
As of the 30th of January, LGI Homes secures the risk adjusted performance of (0.07), and Mean Deviation of 1.67. In connection with fundamental indicators, the technical analysis model lets you check helpful technical drivers of LGI Homes, as well as the relationship between them.LGI Homes' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific LGI Homes insiders, such as employees or executives, is commonly permitted as long as it does not rely on LGI Homes' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases LGI Homes insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
LGI Homes' Outstanding Corporate Bonds
LGI Homes issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. LGI Homes uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most LGI bonds can be classified according to their maturity, which is the date when LGI Homes has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US50187TAF30 Corp BondUS50187TAF30 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand LGI Homes' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing LGI Homes' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.07) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 1.67 | |||
| Coefficient Of Variation | (1,134) | |||
| Standard Deviation | 2.26 | |||
| Variance | 5.13 | |||
| Information Ratio | (0.13) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.41) | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 11.51 | |||
| Value At Risk | (3.54) | |||
| Potential Upside | 3.92 | |||
| Skewness | 0.944 | |||
| Kurtosis | 1.57 |
| Risk Adjusted Performance | (0.07) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 1.67 | |||
| Coefficient Of Variation | (1,134) | |||
| Standard Deviation | 2.26 | |||
| Variance | 5.13 | |||
| Information Ratio | (0.13) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.41) | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 11.51 | |||
| Value At Risk | (3.54) | |||
| Potential Upside | 3.92 | |||
| Skewness | 0.944 | |||
| Kurtosis | 1.57 |
Consider LGI Homes' intraday indicators
LGI Homes intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of LGI Homes stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 7654.84 | |||
| Daily Balance Of Power | 0.7239 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 91.6 | |||
| Day Typical Price | 92.04 | |||
| Price Action Indicator | 2.89 | |||
| Period Momentum Indicator | 3.12 |
LGI Homes Corporate Filings
F4 | 19th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 15th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
LGI Stock media impact
Far too much social signal, news, headlines, and media speculation about LGI Homes that are available to investors today. That information is available publicly through LGI media outlets and privately through word of mouth or via LGI internal channels. However, regardless of the origin, that massive amount of LGI data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of LGI Homes news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of LGI Homes relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to LGI Homes' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive LGI Homes alpha.
LGI Homes Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards LGI Homes can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
LGI Homes Historical Investor Sentiment
Investor biases related to LGI Homes' public news can be used to forecast risks associated with an investment in LGI. The trend in average sentiment can be used to explain how an investor holding LGI can time the market purely based on public headlines and social activities around LGI Homes. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
LGI Homes' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for LGI Homes and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average LGI Homes news discussions. The higher the estimate score, the more favorable the investor's outlook on LGI Homes.
LGI Homes Corporate Executives
Elected by the shareholders, the LGI Homes' board of directors comprises two types of representatives: LGI Homes inside directors who are chosen from within the company, and outside directors, selected externally and held independent of LGI. The board's role is to monitor LGI Homes' management team and ensure that shareholders' interests are well served. LGI Homes' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, LGI Homes' outside directors are responsible for providing unbiased perspectives on the board's policies.
| Charles CPA | CFO Treasurer | Profile | |
| Charles Merdian | CFO, Treasurer and Secretary | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LGI Homes. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more detail on how to invest in LGI Stock please use our How to Invest in LGI Homes guide.You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LGI Homes. If investors know LGI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LGI Homes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.039 | Earnings Share 8.36 | Revenue Per Share | Quarterly Revenue Growth 0.056 | Return On Assets |
The market value of LGI Homes is measured differently than its book value, which is the value of LGI that is recorded on the company's balance sheet. Investors also form their own opinion of LGI Homes' value that differs from its market value or its book value, called intrinsic value, which is LGI Homes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LGI Homes' market value can be influenced by many factors that don't directly affect LGI Homes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between LGI Homes' value and its price, as these two are different measures arrived at by various means. Investors typically determine if LGI Homes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LGI Homes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.