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LGI Homes

Nasdaq:LGIH
Snowflake Description

Undervalued with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LGIH
Nasdaq
$893M
Market Cap
  1. Home
  2. US
  3. Consumer Durables
Company description

LGI Homes, Inc. designs, constructs, and sells homes in the United States. The last earnings update was 38 days ago. More info.


Add to Portfolio Compare Print
  • LGI Homes has significant price volatility in the past 3 months.
LGIH Share Price and Events
7 Day Returns
-26.3%
NasdaqGS:LGIH
-13.1%
US Consumer Durables
-4.1%
US Market
1 Year Returns
-47.5%
NasdaqGS:LGIH
-31.2%
US Consumer Durables
-14.9%
US Market
LGIH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LGI Homes (LGIH) -26.3% -60.2% -50.4% -47.5% 14.1% 104.9%
US Consumer Durables -13.1% -41.1% -41.3% -31.2% -32.9% -30.8%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • LGIH underperformed the Consumer Durables industry which returned -31.2% over the past year.
  • LGIH underperformed the Market in United States of America which returned -14.9% over the past year.
Price Volatility
LGIH
Industry
5yr Volatility vs Market

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.

NasdaqGS:LGIH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

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 NasdaqGS:LGIH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.721 (1 + (1- 21%) (77.99%))
1.11
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.11 * 5.44%)
7.78%

Discounted Cash Flow Calculation for NasdaqGS:LGIH 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.

NasdaqGS:LGIH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.78%)
2020 -52.00 Analyst x1 -48.25
2021 68.00 Analyst x1 58.54
2022 105.50 Est @ 55.15% 84.27
2023 146.79 Est @ 39.13% 108.78
2024 187.76 Est @ 27.91% 129.10
2025 225.42 Est @ 20.06% 143.81
2026 258.25 Est @ 14.56% 152.86
2027 285.93 Est @ 10.72% 157.02
2028 308.87 Est @ 8.02% 157.38
2029 327.84 Est @ 6.14% 154.98
Present value of next 10 years cash flows $1,098.00
NasdaqGS:LGIH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $327.84 × (1 + 1.74%) ÷ (7.78% – 1.74%)
$5,522.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,522.52 ÷ (1 + 7.78%)10
$2,610.77
NasdaqGS:LGIH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,098.00 + $2,610.77
$3,708.77
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,708.77 / 25.34
$146.36
NasdaqGS:LGIH Discount to Share Price
Calculation Result
Value per share (USD) From above. $146.36
Current discount Discount to share price of $35.23
= -1 x ($35.23 - $146.36) / $146.36
75.9%

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

Current Discount
Amount off the current price LGI Homes is available for.
Intrinsic value
>50%
Share price is $35.23 vs Future cash flow value of $146.36
Current Discount Checks
For LGI Homes to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LGI Homes's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LGI Homes's share price is below the future cash flow value, and at a substantial discount (> 40%).
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
NasdaqGS:LGIH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $7.70
NasdaqGS:LGIH Share Price ** NasdaqGS (2020-04-02) in USD $35.23
United States of America Consumer Durables Industry PE Ratio Median Figure of 44 Publicly-Listed Consumer Durables Companies 6.73x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

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

** Primary Listing of LGI Homes.

NasdaqGS:LGIH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 35.23 ÷ 7.70

4.57x

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 US Consumer Durables industry average.
  • LGI Homes is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does LGI Homes's expected growth come at a high price?
Raw Data
NasdaqGS:LGIH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.57x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
12.5%per year
United States of America Consumer Durables Industry PEG Ratio Median Figure of 35 Publicly-Listed Consumer Durables Companies 0.63x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

NasdaqGS:LGIH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.57x ÷ 12.5%

0.37x

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
NasdaqGS:LGIH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $33.33
NasdaqGS:LGIH Share Price * NasdaqGS (2020-04-02) in USD $35.23
United States of America Consumer Durables Industry PB Ratio Median Figure of 69 Publicly-Listed Consumer Durables Companies 0.7x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NasdaqGS:LGIH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 35.23 ÷ 33.33

1.06x

* 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 US 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 5/6, 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 4 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
12.5%
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 1.7%.
Growth vs Market Checks
  • LGI Homes's earnings growth is expected to exceed the United States of America market average.
  • LGI Homes's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LGIH Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LGIH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 12.5%
NasdaqGS:LGIH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 14.3%
United States of America Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
United States of America Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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
NasdaqGS:LGIH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LGIH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,454 -2 230 4
2020-12-31 2,208 -78 207 4
2020-04-03
NasdaqGS:LGIH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,838 -42 179
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LGI Homes's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
  • LGI Homes's revenue is expected to grow by 14.3% 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
NasdaqGS:LGIH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from LGI Homes Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LGIH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 8.69 9.16 8.31 4.00
2020-12-31 7.97 8.23 7.71 4.00
2020-04-03
NasdaqGS:LGIH Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 7.70
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

*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.
  • LGI Homes is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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 (15% vs 31.6%)
  • LGI Homes's earnings growth has exceeded the US Consumer Durables industry average in the past year (15% vs 10%).
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 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LGIH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,838.15 178.61 208.94
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 1,504.40 155.29 179.81
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

*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 US 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 2.3x 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 3 months ago.

NasdaqGS:LGIH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 845.19 690.56 38.35
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
  • LGI Homes's level of debt (81.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (118.4% vs 81.7% 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 3/6, 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
NasdaqGS:LGIH 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 4 Analyst Estimates (S&P Global) See Below
United States of America Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

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

NasdaqGS:LGIH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2020-04-03

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 1.1%) - 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 $4,256,526
AGE 48
TENURE AS CEO 11.3 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 United States of America.
Management Team Tenure

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

8.7
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
11.3 yrs

Mike Snider

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

Charles Merdian

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
49
TENURE
10.3 yrs

Rachel Eaton

TITLE
Chief Marketing Officer
COMPENSATION
$798K
AGE
37
TENURE
6.8 yrs

Jack Lipar

TITLE
Executive Vice President of Acquisitions
COMPENSATION
$861K
AGE
50
TENURE
7.1 yrs

Caitlin Stiles

TITLE
Investor Relations Officer
TENURE
4.3 yrs

Scott Garber

TITLE
General Counsel & Corporate Secretary
AGE
47
TENURE
2 yrs

Chris Kelly

TITLE
Southwest Division President

Tom Lipar

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

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

6.8
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
$220K
AGE
46
TENURE
6.8 yrs

Eric Lipar

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

Steven Smith

TITLE
Independent Director
COMPENSATION
$195K
AGE
63
TENURE
6.8 yrs

Ryan Edone

TITLE
Independent Director
COMPENSATION
$200K
AGE
45
TENURE
5.4 yrs

Rob Vahradian

TITLE
Independent Director
COMPENSATION
$185K
AGE
58
TENURE
6.8 yrs

Duncan Gage

TITLE
Independent Director
COMPENSATION
$185K
AGE
69
TENURE
6.8 yrs

Laura Miller

TITLE
Independent Director
COMPENSATION
$285K
AGE
54
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • LGI Homes individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Mar 20 Sell Eric Lipar Individual 16. Mar 20 16. Mar 20 -49,139 $51.34 $-2,232,239
17. Mar 20 Sell Charles Merdian Individual 16. Mar 20 16. Mar 20 -14,536 $51.34 $-660,324
17. Mar 20 Sell Rachel Eaton Individual 16. Mar 20 16. Mar 20 -4,765 $51.34 $-216,462
17. Mar 20 Sell Jack Lipar Individual 16. Mar 20 16. Mar 20 -4,765 $51.34 $-216,462
17. Mar 20 Sell Michael Snider Individual 16. Mar 20 16. Mar 20 -20,847 $51.34 $-947,019
17. Dec 19 Sell Ryan Edone Individual 16. Dec 19 17. Dec 19 -3,500 $73.47 $-257,115
17. Dec 19 Sell Steven Smith Individual 17. Dec 19 17. Dec 19 -5,750 $73.46 $-422,395
11. Jun 19 Sell Steven Smith Individual 07. Jun 19 07. Jun 19 -2,500 $74.49 $-186,225
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

A Close Look At LGI Homes, Inc.’s (NASDAQ:LGIH) 14% ROCE

And finally, we'll look at how its current liabilities are impacting its ROCE. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for LGI Homes:0.14 = US$190m ÷ (US$1.5b - US$165m) (Based on the trailing twelve months to June 2019.) Therefore, LGI Homes has an ROCE of 14%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Should You Be Happy With LGI Homes, Inc.'s (NASDAQ:LGIH) Performance Lately?

View our latest analysis for LGI Homes Did LGIH's recent earnings growth beat the long-term trend and the industry? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 37%, indicating the rate at which LGIH is growing has slowed down. … You should continue to research LGI Homes to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for LGIH’s future growth?

Simply Wall St -

Should You Be Adding LGI Homes (NASDAQ:LGIH) To Your Watchlist Today?

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in LGI Homes (NASDAQ:LGIH). … You can't deny that LGI Homes has grown its earnings per share at a very impressive rate. … But as a growth investor I always like to check out companies that do have those features.

Simply Wall St -

How Many LGI Homes, Inc. (NASDAQ:LGIH) Shares Have Insiders Sold, In The Last Year?

So shareholders might well want to know whether insiders have been buying or selling shares in LGI Homes, Inc. … Over the last year we saw more insider selling of LGI Homes shares, than buying. … NasdaqGS:LGIH Recent Insider Trading, July 12th 2019 LGI Homes Insiders Are Selling The Stock The last quarter saw substantial insider selling of LGI Homes shares.

Simply Wall St -

A Closer Look At LGI Homes, Inc.'s (NASDAQ:LGIH) Impressive ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for LGI Homes: 22% = US$146m ÷ US$677m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … How Does Debt Impact Return On Equity? … LGI Homes's Debt And Its 22% ROE Although LGI Homes does use debt, its debt to equity ratio of 1.00 is still low.

Simply Wall St -

Is LGI Homes, Inc.'s (NASDAQ:LGIH) Stock Available For A Good Price After Accounting For Growth?

But, to be able to properly assess the value of a high-growth stock such as LGI Homes, we must incorporate its earnings growth in our valuation. … A PE ratio of 11.41x and expected year-on-year earnings growth of 16% give LGI Homes a very low PEG ratio of 0.70x. … This tells us that when we include its growth in our analysis LGI Homes's stock can be considered relatively cheap , based on its fundamentals.

Simply Wall St -

Did You Miss LGI Homes's (NASDAQ:LGIH) Impressive 299% Share Price Gain?

(NASDAQ:LGIH) which saw its share price drive 299% higher over five years. … During five years of share price growth, LGI Homes achieved compound earnings per share (EPS) growth of 71% per year. … If you are thinking of buying or selling LGI Homes stock, you should check out this FREE detailed report on its balance sheet.

Simply Wall St -

What Can We Make Of LGI Homes, Inc.’s (NASDAQ:LGIH) High Return On Capital?

And finally, we'll look at how its current liabilities are impacting its ROCE. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for LGI Homes: 0.15 = US$193m ÷ (US$1.4b - US$152m) (Based on the trailing twelve months to March 2019.) So, LGI Homes has an ROCE of 15%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

What Does LGI Homes, Inc.'s (NASDAQ:LGIH) Balance Sheet Tell Us About It?

LGIH’s Debt (And Cash Flows) Over the past year, LGIH has ramped up its debt from US$572m to US$681m – this includes long-term debt. … With this rise in debt, LGIH currently has US$35m remaining in cash and short-term investments to keep the business going. … Next Steps: LGIH’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Do You Like LGI Homes, Inc. (NASDAQ:LGIH) At This P/E Ratio?

Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. … We'll show how you can use LGI Homes, Inc.'s (NASDAQ:LGIH) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

LGI Homes, Inc. designs, constructs, and sells homes in the United States. It offers entry-level homes, such as detached and attached homes, and move-up homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. As of February 29, 2020, it owned 108 communities. The company serves in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, and Virginia. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

Details
Name: LGI Homes, Inc.
LGIH
Exchange: NasdaqGS
Founded: 2003
$892,707,379
25,339,409
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
953
LGI Homes employees.
Industry
Homebuilding
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 14:07
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/18
Last earnings filing: 2020/02/25
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.