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LGI Homes (LGIH) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

LGI Homes
NasdaqGS•Consumer Cyclical•Residential Construction
$55.00+0.53(0.01%)Pre-market
Market Cap
$1.14B
P/E
17.2x
P/S
0.7x
P/B
0.5x

LGI Homes, Inc. engages in the design, construction, and sale of new homes in the United States. It markets and sells attached and detached entry-level homes and active adult offerings under the LGI Homes brand; and luxury homes under the Terrata Homes brand. The company also engages in the wholesale business, which includes building and selling homes to large institutions interested in acquiring single-family rental properties through bulk sales agreements. It operates in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland, and Utah. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

D

How this company scores

WeakMetricSide Score: 36/100

Strongest: Balance Sheet & Red Flags (16/25); weakest: Growth (3/25).

Profitability7/25
Growth3/25
Balance Sheet & Red Flags16/25
Cash & Earnings Quality10/25
Strengths
Improving leverageImproving marginsNo share dilution

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 17.2x5y range 4.7x – 17.2x
P/E 17.2x · above its 20-quarter median

Currently above its 20-quarter median.

P/S · 0.7x5y range 0.5x – 1.4x
P/S 0.7x · below its 20-quarter median

Currently below its 20-quarter median.

P/B · 0.5x5y range 0.4x – 2.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 48.7% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Red Flag

Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.

Price & Volume
Market Cap $1.14B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$1.71B
17%
Q. Revenue
$516.05M
7%
TTM EBITDA
$75.55M
7Q
TTM Op. Income
$68.39M
7Q
Q. Op. Income
$28.98M
27%
TTM Net Income
$66.17M
7Q
Q. Net Income
$26.98M
14%
EPS
$1.16
15%
Shares Out.
$23.20M
3Q
$1.71B in TTM revenue declined 16.5% YoY, reaching $516.05M last quarter. TTM EBITDA of $75.55M and TTM operating income of $68.39M show growth is flowing through to the bottom line. TTM net income of $66.17M means revenue is converting into profit. Over the past year, TTM revenue is down 17% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
19.7%
2Q
EBITDA Margin
5.9%
30%
Op. Margin
5.6%
31%
Net Margin
5.2%
20%
Op. margin of 5.6% is down 2.6% YoY — costs are rising relative to revenue. Net margin at 5.2% and gross margin of 19.7% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 31% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
17.2x
125%
P/S Ratio
0.7x
14%
P/B Ratio
0.5x
8%
At 17.2x P/E, the stock trades within typical market levels. P/S of 0.7x and P/B of 0.5x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 125% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$3.92B
2%
Cash
$61.08M
3%
Long-Term Debt
$1.58B
9%
Book Value
$2.13B
7Q
D/E Ratio
0.7
12%
Debt/EBITDA
52.2
22%
With $3.92B in assets and $1.58B in long-term debt, D/E is 0.7and book value is $2.13B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 12% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$114.56M
233%
TTM Free Cash Flow
$131.01M
4Q
FCF Margin
7.7%
3Q
FCF / Net Income
2.0
2Q
TTM FCF of $131.01M on $114.56M in operating cash flow. The FCF / Net Income ratio of 2.0x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 4 consecutive quarters — an improving trend.

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P/B 0.5x
· below its 20-quarter median

Currently below its 20-quarter median.

Revenue Decline

Red Flag

TTM revenue has contracted 20.6% — significant decline indicating deteriorating demand.

Cash Burn

Watch

5 of the last 8 quarters had negative FCF — inconsistent cash generation raises sustainability concerns.