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LGI Homes

DB:LG1
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LG1
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Consumer Durables
Company description

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, West Virginia, and Dallas. The last earnings update was 14 days ago. More info.


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  • LGI Homes has significant price volatility in the past 3 months.
LG1 Share Price and Events
7 Day Returns
-1.6%
DB:LG1
0.5%
DE Consumer Durables
-0.3%
DE Market
1 Year Returns
71.8%
DB:LG1
4%
DE Consumer Durables
10.4%
DE Market
LG1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LGI Homes (LG1) -1.6% -19.6% -11.5% 71.8% 107.4% 392.2%
DE Consumer Durables 0.5% 5.1% 4.1% 4% -3% 13.6%
DE Market -0.3% 4.2% 12.4% 10.4% 13.9% 17.1%
1 Year Return vs Industry and Market
  • LG1 outperformed the Consumer Durables industry which returned 4% over the past year.
  • LG1 outperformed the Market in Germany which returned 10.4% over the past year.
Price Volatility
LG1
Industry
5yr Volatility vs Market
Related Companies

Value

 Is LGI Homes undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LGI Homes to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LGI Homes.

DB:LG1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LG1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.812 (1 + (1- 21%) (46.55%))
1.074
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.074 * 5.96%)
6.63%

Discounted Cash Flow Calculation for DB:LG1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LGI Homes is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:LG1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.63%)
2020 15.00 Analyst x1 14.07
2021 22.15 Est @ 47.67% 19.48
2022 29.56 Est @ 33.44% 24.38
2023 36.50 Est @ 23.48% 28.23
2024 42.52 Est @ 16.5% 30.85
2025 47.46 Est @ 11.62% 32.29
2026 51.36 Est @ 8.2% 32.77
2027 54.34 Est @ 5.81% 32.52
2028 56.59 Est @ 4.14% 31.76
2029 58.26 Est @ 2.96% 30.67
Present value of next 10 years cash flows $277.00
DB:LG1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $58.26 × (1 + 0.23%) ÷ (6.63% – 0.23%)
$912.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $912.39 ÷ (1 + 6.63%)10
$480.24
DB:LG1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $277.00 + $480.24
$757.24
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $757.24 / 22.95
$33
DB:LG1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LG1 represents 0.89652x of NasdaqGS:LGIH
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89652x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 33.00 x 0.89652
€29.58
Value per share (EUR) From above. €29.58
Current discount Discount to share price of €63.50
= -1 x (€63.50 - €29.58) / €29.58
-114.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of LGI Homes is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LGI Homes's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LGI Homes's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LG1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $6.79
NasdaqGS:LGIH Share Price ** NasdaqGS (2019-11-19) in USD $70.83
Germany Consumer Durables Industry PE Ratio Median Figure of 8 Publicly-Listed Consumer Durables Companies 16.53x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 19.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LGI Homes.

DB:LG1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LGIH Share Price ÷ EPS (both in USD)

= 70.83 ÷ 6.79

10.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LGI Homes is good value based on earnings compared to the DE Consumer Durables industry average.
  • LGI Homes is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does LGI Homes's expected growth come at a high price?
Raw Data
DB:LG1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
13.8%per year
Germany Consumer Durables Industry PEG Ratio Median Figure of 5 Publicly-Listed Consumer Durables Companies 1x
Germany Market PEG Ratio Median Figure of 258 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

DB:LG1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.43x ÷ 13.8%

0.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LGI Homes is good value based on expected growth next year.
Price based on value of assets
What value do investors place on LGI Homes's assets?
Raw Data
DB:LG1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $33.86
NasdaqGS:LGIH Share Price * NasdaqGS (2019-11-19) in USD $70.83
Germany Consumer Durables Industry PB Ratio Median Figure of 12 Publicly-Listed Consumer Durables Companies 1.69x
Germany Market PB Ratio Median Figure of 578 Publicly-Listed Companies 1.88x
DB:LG1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LGIH Share Price ÷ Book Value per Share (both in USD)

= 70.83 ÷ 33.86

2.09x

* Primary Listing of LGI Homes.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LGI Homes is overvalued based on assets compared to the DE Consumer Durables industry average.
X
Value checks
We assess LGI Homes's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. LGI Homes has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is LGI Homes expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LGI Homes expected to grow at an attractive rate?
  • LGI Homes's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • LGI Homes's earnings growth is expected to exceed the Germany market average.
  • LGI Homes's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LG1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LG1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 13.8%
DB:LG1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 13%
Germany Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 14%
Germany Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LG1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LG1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,171 213 1
2020-12-31 2,085 -5 198 5
2019-12-31 1,782 -77 170 5
2019-11-19
DB:LG1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 1,658 -119 156
2019-06-30 1,555 -40 145
2019-03-31 1,513 -39 146
2018-12-31 1,504 -117 155
2018-09-30 1,484 -98 148
2018-06-30 1,470 -96 144
2018-03-31 1,374 -132 129
2017-12-31 1,258 -68 113
2017-09-30 1,090 -113 101
2017-06-30 940 -141 87
2017-03-31 839 -145 75
2016-12-31 838 -108 75

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LGI Homes's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
  • LGI Homes's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LG1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from LGI Homes Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LG1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 8.31 8.31 8.31 1.00
2020-12-31 7.68 8.07 7.06 5.00
2019-12-31 6.68 6.81 6.59 5.00
2019-11-19
DB:LG1 Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 6.79
2019-06-30 6.36
2019-03-31 6.45
2018-12-31 6.89
2018-09-30 6.70
2018-06-30 6.54
2018-03-31 5.91
2017-12-31 5.24
2017-09-30 4.70
2017-06-30 4.06
2017-03-31 3.57
2016-12-31 3.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if LGI Homes will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess LGI Homes's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LGI Homes has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has LGI Homes performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LGI Homes's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LGI Homes has delivered over 20% year on year earnings growth in the past 5 years.
  • LGI Homes's 1-year earnings growth is less than its 5-year average (5.5% vs 33.9%)
  • LGI Homes's earnings growth has exceeded the DE Consumer Durables industry average in the past year (5.5% vs -18.6%).
Earnings and Revenue History
LGI Homes's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LGI Homes Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LG1 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 1,657.67 156.39 198.05
2019-06-30 1,554.95 144.77 191.11
2019-03-31 1,512.97 146.32 185.85
2018-12-31 1,504.40 155.29 179.01
2018-09-30 1,484.22 148.27 175.60
2018-06-30 1,469.74 144.24 171.37
2018-03-31 1,374.07 128.83 161.64
2017-12-31 1,257.96 113.31 150.62
2017-09-30 1,089.82 100.87 136.72
2017-06-30 940.22 86.65 122.99
2017-03-31 838.77 75.11 113.47
2016-12-31 838.32 75.03 110.14
2016-09-30 778.25 67.56 103.30
2016-06-30 735.91 63.51 98.53
2016-03-31 672.01 56.83 91.51
2015-12-31 630.24 52.83 87.26
2015-09-30 561.89 44.63 81.45
2015-06-30 480.45 36.26 73.85
2015-03-31 428.04 31.32 67.04
2014-12-31 383.27 28.21 60.42
2014-09-30 340.30 14.59 50.36
2014-06-30 285.83 13.13 42.65
2014-03-31 216.76 9.25 34.63
2013-12-31 162.80 7.11 29.37
2013-09-30 121.15 15.53 22.56
2013-06-30 106.67 13.60 18.57
2013-03-31 85.47 10.82 14.88
2012-12-31 76.22 9.71 13.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • LGI Homes has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • LGI Homes used its assets more efficiently than the DE Consumer Durables industry average last year based on Return on Assets.
  • LGI Homes's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess LGI Homes's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LGI Homes has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is LGI Homes's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LGI Homes's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LGI Homes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LGI Homes's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of LGI Homes's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LGI Homes Company Filings, last reported 1 month ago.

DB:LG1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 777.05 751.36 37.03
2019-06-30 725.24 664.92 37.56
2019-03-31 676.93 676.08 35.08
2018-12-31 655.94 653.73 46.62
2018-09-30 612.42 627.70 37.97
2018-06-30 568.68 554.54 48.89
2018-03-31 518.91 571.72 52.02
2017-12-31 489.85 475.20 67.57
2017-09-30 446.65 464.06 47.97
2017-06-30 406.36 442.95 27.30
2017-03-31 373.24 426.16 31.65
2016-12-31 355.20 400.48 49.52
2016-09-30 330.56 354.93 45.92
2016-06-30 300.93 334.17 49.67
2016-03-31 263.49 323.10 47.57
2015-12-31 247.39 304.56 37.57
2015-09-30 224.22 247.81 36.47
2015-06-30 205.06 239.93 49.75
2015-03-31 190.77 229.98 39.01
2014-12-31 182.50 216.10 31.37
2014-09-30 186.32 160.19 46.16
2014-06-30 179.03 93.93 42.85
2014-03-31 169.74 48.82 25.66
2013-12-31 164.37 35.54 54.07
2013-09-30 52.92 27.44 9.39
2013-06-30 47.28 23.07 15.21
2013-03-31 31.80 16.99 7.69
2012-12-31 25.21 14.97 7.07
  • LGI Homes's level of debt (96%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (86.3% vs 96% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on LGI Homes's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess LGI Homes's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LGI Homes has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is LGI Homes's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from LGI Homes dividends.
If you bought €2,000 of LGI Homes shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate LGI Homes's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate LGI Homes's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LG1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Germany Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LG1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
2019-11-19

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as LGI Homes has not reported any payouts.
  • Unable to verify if LGI Homes's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of LGI Homes's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as LGI Homes has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess LGI Homes's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LGI Homes afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LGI Homes has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of LGI Homes's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Eric Lipar
COMPENSATION $4,189,925
AGE 48
TENURE AS CEO 10.8 years
CEO Bio

Mr. Eric Thomas Lipar has been the Chairman of LGI Homes, Inc. since July 2013 and has been its Chief Executive Officer since 2009. Mr. Lipar served as the President of LGI Homes, Inc. from 2003 to 2009. Mr. Lipar has been in the residential land development business since the mid-1990s and is one of founders. He has overseen land acquisition, development and the sales of over 5,000 homes since inception. Through his in-depth work experience, Mr. Lipar has obtained a broad background in all aspects of residential construction, development, financing, sales and marketing. Mr. Lipar is responsible for overall strategic leadership, working closely with key executives to establish, implement and direct long-range goals, strategies and policies. Mr. Lipar serves on the Residential Neighborhood Development Council for the Urban Land Institute and is a member of Vistage Worldwide. Mr. Lipar’s extensive business knowledge, along with his demonstrated leadership capability throughout the growth of Company makes him highly. He has been a Non-Independent Director of LGI Homes, Inc. since June 2013. Mr. Lipar serves as an Executive Director at LGI Investment Fund II, LP.

CEO Compensation
  • Eric's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Eric's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the LGI Homes management team in years:

8.3
Average Tenure
48
Average Age
  • The average tenure for the LGI Homes management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Eric Lipar

TITLE
Chairman & CEO
COMPENSATION
$4M
AGE
48
TENURE
10.8 yrs

Mike Snider

TITLE
President & COO
COMPENSATION
$2M
AGE
48
TENURE
10.8 yrs

Charles Merdian

TITLE
CFO & Treasurer
COMPENSATION
$1M
AGE
49
TENURE
9.8 yrs

Rachel Eaton

TITLE
Chief Marketing Officer
COMPENSATION
$749K
AGE
37
TENURE
6.4 yrs

Jack Lipar

TITLE
Executive Vice President of Acquisitions
COMPENSATION
$766K
AGE
50
TENURE
6.7 yrs

Caitlin Stiles

TITLE
Investor Relations Officer
TENURE
3.8 yrs

Scott Garber

TITLE
General Counsel & Corporate Secretary
AGE
47
TENURE
1.6 yrs

Chris Kelly

TITLE
Southwest Division President

Tom Lipar

TITLE
Managing Member of Certain Predecessor Entities
COMPENSATION
$524K
AGE
69
TENURE
17.8 yrs
Board of Directors Tenure

Average tenure and age of the LGI Homes board of directors in years:

6.4
Average Tenure
54
Average Age
  • The tenure for the LGI Homes board of directors is about average.
Board of Directors

Bryan Sansbury

TITLE
Lead Independent Director
COMPENSATION
$195K
AGE
46
TENURE
6.4 yrs

Eric Lipar

TITLE
Chairman & CEO
COMPENSATION
$4M
AGE
48
TENURE
6.3 yrs

Steven Smith

TITLE
Independent Director
COMPENSATION
$170K
AGE
63
TENURE
6.4 yrs

Ryan Edone

TITLE
Independent Director
COMPENSATION
$175K
AGE
45
TENURE
5 yrs

Rob Vahradian

TITLE
Independent Director
COMPENSATION
$160K
AGE
58
TENURE
6.4 yrs

Duncan Gage

TITLE
Independent Director
COMPENSATION
$160K
AGE
69
TENURE
6.4 yrs

Laura Miller

TITLE
Independent Director
AGE
54
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
11. Jun 19 Sell Steven Smith Individual 07. Jun 19 07. Jun 19 -2,500 €65.70 €-164,250
25. Mar 19 Sell Robert Vahradian Individual 22. Mar 19 22. Mar 19 -4,000 €49.08 €-196,311
19. Mar 19 Sell Eric Lipar Individual 18. Mar 19 18. Mar 19 -40,478 €50.42 €-2,027,029
19. Mar 19 Sell Michael Snider Individual 15. Mar 19 18. Mar 19 -34,726 €50.75 €-1,744,686
19. Mar 19 Sell Charles Merdian Individual 15. Mar 19 15. Mar 19 -12,000 €50.81 €-606,260
19. Mar 19 Sell Rachel Eaton Individual 15. Mar 19 18. Mar 19 -8,490 €50.75 €-425,813
19. Mar 19 Sell Jack Lipar Individual 15. Mar 19 15. Mar 19 -5,200 €50.81 €-262,713
01. Feb 19 Sell Michael Snider Individual 30. Jan 19 31. Jan 19 -16,670 €52.46 €-873,928
X
Management checks
We assess LGI Homes's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LGI Homes has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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, West Virginia, and Dallas. It offers entry-level homes, such as detached homes and townhomes, and move-up homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. As of June 30, 2019, it owned 93 communities. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

Details
Name: LGI Homes, Inc.
LG1
Exchange: DB
Founded: 2003
$1,467,054,708
22,949,956
Website: http://www.lgihomes.com
Address: LGI Homes, Inc.
1450 Lake Robbins Drive,
Suite 430,
The Woodlands,
Texas, 77380,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LGIH New Common Stock Nasdaq Global Select US USD 07. Nov 2013
DB LG1 New Common Stock Deutsche Boerse AG DE EUR 07. Nov 2013
LSE 0JSI New Common Stock London Stock Exchange GB USD 07. Nov 2013
Number of employees
Current staff
Staff numbers
857
LGI Homes employees.
Industry
Homebuilding
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 21:29
End of day share price update: 2019/11/19 00:00
Last estimates confirmation: 2019/11/06
Last earnings filing: 2019/11/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.