LGI Homes Operating Margin vs. Shares Outstanding
| LG1 Stock | EUR 103.00 1.00 0.96% |
For LGI Homes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LGI Homes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LGI Homes utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LGI Homes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LGI Homes over time as well as its relative position and ranking within its peers.
LGI |
LGI Homes Shares Outstanding vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LGI Homes's current stock value. Our valuation model uses many indicators to compare LGI Homes value to that of its competitors to determine the firm's financial worth. LGI Homes is currently regarded as number one stock in operating margin category among its peers. It also is currently regarded as number one stock in shares outstanding category among its peers creating about 135,262,914 of Shares Outstanding per Operating Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the LGI Homes' earnings, one of the primary drivers of an investment's value.LGI Shares Outstanding vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
LGI Homes |
| = | 0.17 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
LGI Homes |
| = | 23.31 M |
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
LGI Shares Outstanding Comparison
LGI Homes is currently under evaluation in shares outstanding category among its peers.
LGI Homes Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in LGI Homes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LGI Homes will eventually generate negative long term returns. The profitability progress is the general direction of LGI Homes' change in net profit over the period of time. It can combine multiple indicators of LGI Homes, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
LGI Homes, Inc. engages in the design, construction, and sale of new homes in Texas, Arizona, Florida, Georgia, New Mexico, North Carolina, South Carolina, Colorado, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, and West Virginia. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. LGI HOMES operates under Residential Construction classification in Germany and is traded on Frankfurt Stock Exchange. It employs 857 people.
LGI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LGI Homes. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of LGI Homes position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the LGI Homes' important profitability drivers and their relationship over time.
Use LGI Homes in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if LGI Homes position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LGI Homes will appreciate offsetting losses from the drop in the long position's value.LGI Homes Pair Trading
LGI Homes Pair Trading Analysis
The ability to find closely correlated positions to LGI Homes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LGI Homes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back LGI Homes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling LGI Homes to buy it.
The correlation of LGI Homes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as LGI Homes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LGI Homes moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for LGI Homes can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your LGI Homes position
In addition to having LGI Homes in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Municipals ETFs theme has 111 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Municipals ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in LGI Stock
When determining whether LGI Homes offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LGI Homes' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lgi Homes Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lgi Homes Stock:Check out Correlation Analysis. 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
To fully project LGI Homes' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LGI Homes at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include LGI Homes' income statement, its balance sheet, and the statement of cash flows.