# LGI Homes (LGIH.US)

Canonical: https://gigainvestors.com/s/LGIH

Analysis as of: 2026-10-16T07:29:48.872Z. Financial observations: FY2011–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $44.08 per share; close as of 2026-10-15.

Estimated value: low $73.00 per share, central $82.90 per share, high $96.09 per share. Buy at or below the central value $82.90 per share. Valuation as of 2026-10-16T07:29:48.872Z; scenarios are not confidence intervals.

Expected annual return: 16.7% at the stated quote. About 16.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.38×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.13×

- FY2019: 0.12×

- FY2020: 0.15×

- FY2021: 0.18×

- FY2022: 0.17×

- FY2023: 0.10×

- FY2024: 0.10×

- FY2025: 0.05×

- LTM to Jun 2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.0%

- ROIC, second-lowest year: 1.6%

- Typical minus recent gross margin: 5.3 pp

- Typical gross margin (annual median): 24.7%

- Recent gross margin (lower of latest and 3-year median): 19.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.1%

- ROIC including acquisitions, ten-year median: 10.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 12.7%

- FY2018: 11.8%

- FY2019: 9.8%

- FY2020: 16.7%

- FY2021: 20.3%

- FY2022: 10.1%

- FY2023: 5.5%

- FY2024: 4.6%

- FY2025: 1.6%

- LTM to Jun 2026: 1.4%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: $1.2B

- Return on incremental invested capital: 0.2%

- Working capital / revenue, annual change: 12.1 pp

- Working capital / revenue, change between three-year averages: 82.5 pp

- Working capital / revenue, final three-year average: 164.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.01×

- FY2025: 1.05×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 11.8% vs 4.6%

- Per-share earnings: 3.41 to 8.30 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.7%

- Ordinary dilution, 5-year annual growth: -1.7%

- Market cap gain: $382M

- Cumulative retained earnings: $2.0B

- Diluted shares, 10-year annual growth: 0.7%

- Diluted shares, 5-year annual growth: -1.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.8%

- Per-share value change: $4.90

- Per-share value, starting three-year median: $3.41

- Per-share value, ending three-year median: $8.30

- Buybacks concentrated in cheaper years (correlation): -0.03

- Average buyback yield: 2.6%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: $25M

- Cumulative net income, 10 years: $2.1B

- ROIC, first three-year median: 11.8%

- ROIC, last three-year median: 4.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.41

- FY2017: $4.73

- FY2018: $6.24

- FY2019: $7.02

- FY2020: $12.76

- FY2021: $17.25

- FY2022: $13.76

- FY2023: $8.42

- FY2024: $8.30

- FY2025: $3.12

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 5.4%

- Receivables to sales index (DSRI): 1.46×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -1.93×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 22.5%

- FY2017: 16.8%

- FY2018: 19.5%

- FY2019: 13.2%

- FY2020: 6.7%

- FY2021: 17.3%

- FY2022: 22.3%

- FY2023: 7.5%

- FY2024: 9.0%

- FY2025: 5.4%

## Holders

## Price story

Down 71% since Dec 2021 · "LGI Homes Faces Margin Pressure Amid Lower Sales Volume, Mortgage Rate Buydowns, Wedbush Says" (finance.yahoo.com, Jul 2025) · sales +0.1%

Story as of 2026-10-16T09:59:03.951Z; price observation 2026-10-15.

Price needs cash profits to shrink 7.2% a year for ten years

- 2025-05-13: LGIH Q1 Earnings Call: Lower Volumes and Margins Prompt Cautious Guidance Amid Affordability Pressures ([finance.yahoo.com](https://finance.yahoo.com/news/lgih-q1-earnings-call-lower-104452739.html))

- 2025-07-07: LGI Homes Faces Margin Pressure Amid Lower Sales Volume, Mortgage Rate Buydowns, Wedbush Says ([finance.yahoo.com](https://finance.yahoo.com/news/lgi-homes-faces-margin-pressure-191930593.html))

- 2025-11-05: LGIH Q3 Deep Dive: Orders and Backlog Climb as Incentives Offset Challenged Market ([finance.yahoo.com](https://finance.yahoo.com/news/lgih-q3-deep-dive-orders-053107598.html))

- 2026-04-28: LGI Homes, Inc. Reports First Quarter 2026 Results and Raises Full Year Margin Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/lgi-homes-inc-reports-first-110000546.html))

### Sales · FY2025–2026

sales +0.1%; source https://www.sec.gov/Archives/edgar/data/1580670/000158067026000019/lgih-20251231.htm; observed 2026-02-20.

- FY2017: $1.3B 

- FY2018: $1.5B 

- FY2019: $1.8B 

- FY2020: $2.4B 

- FY2021: $3.1B 

- FY2022: $2.3B 

- FY2023: $2.4B 

- FY2024: $2.2B 

- FY2025: $1.7B 

- FY2026: $1.7B 

### Gross margin · FY2026

gross margin 19.4%; source https://www.sec.gov/Archives/edgar/data/1580670/000158067026000019/lgih-20251231.htm; observed 2026-02-20.

- FY2017: 25.5% 

- FY2018: 25.3% 

- FY2019: 23.7% 

- FY2020: 25.5% 

- FY2021: 26.8% 

- FY2022: 28.1% 

- FY2023: 23.0% 

- FY2024: 24.2% 

- FY2025: 20.7% 

- FY2026: 19.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in residential construction; annual sales are USD 1.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1580670/000158067026000019/lgih-20251231.htm (filed 2026-02-20); FY2025: revenue 1705504000; grossProfit 353546000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); LGIH.US: 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.

### Why customers stay

Margins ranged from 20.7% to 24.2% during 2023–25; it earns 10% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 23%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 24.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1580670/000158067026000019/lgih-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 20.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2017,0.12676618331256737],[2018,0.11830183709125196],[2019,0.0984037120045626],[2020,0.1667224310285352],[2021,0.20259033767438075],[2022,0.10142223059863793],[2023,0.054504798374745374],[2024,0.04595389308043898],[2025,0.015970545304266916],[2026,0.013549192871876352]]; median 0.09991297130160026. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 3 of 10 years; bought back USD 23.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 722000; cash acquisitions 0; owner earnings 75398000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 518000; owner earnings 113579000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 475000; owner earnings 155522000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 91000; upkeep 643000; owner earnings 178608000. Growth capex / owner earnings = 0.0005094956552897966.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 745539.0588997854; upkeep 1946460.9411002146; owner earnings 322658539.05889976. Growth capex / owner earnings = 0.002310613136333859.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 575000; upkeep 1154000; owner earnings 429645000. Growth capex / owner earnings = 0.0013383141896216645.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 1187000; cash acquisitions 4781000; owner earnings 326956000. Growth capex plus acquisitions / owner earnings = 0.014622762695897918.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 1443000; cash acquisitions 12205000; owner earnings 200192000. Growth capex plus acquisitions / owner earnings = 0.06096647218670077.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 1952000; cash acquisitions 7869000; owner earnings 197227000. Growth capex plus acquisitions / owner earnings = 0.03989818838191526.

- Source: https://www.sec.gov/Archives/edgar/data/1580670/000158067026000019/lgih-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 924000; cash acquisitions 0; owner earnings 75950000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,0],[2017,0],[2018,612717000],[2019,0],[2020,377064000],[2021,1239818000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1580670/000158067026000019/lgih-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 23639000 USD.

### Are managers owners

Insiders own 12.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); LGIH.US SharesStats.PercentInsiders = 12.598999999999998 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits shrink 7.2% yearly over ten years; actual growth was 3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate -0.11403973597667999. Price 44.08; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.43000243000243 → FY2025 3.2660211885005954. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $29.76 per share

- 2016-11: $32.65 per share

- 2016-12: $28.73 per share

- 2017-01: $31.06 per share

- 2017-02: $29.01 per share

- 2017-03: $33.91 per share

- 2017-04: $31.83 per share

- 2017-05: $32.40 per share

- 2017-06: $40.18 per share

- 2017-07: $44.30 per share

- 2017-08: $42.54 per share

- 2017-09: $48.57 per share

- 2017-10: $60.33 per share

- 2017-11: $70.21 per share

- 2017-12: $75.03 per share

- 2018-01: $67.68 per share

- 2018-02: $56.59 per share

- 2018-03: $70.57 per share

- 2018-04: $69.20 per share

- 2018-05: $60.91 per share

- 2018-06: $57.73 per share

- 2018-07: $51.69 per share

- 2018-08: $57.60 per share

- 2018-09: $47.44 per share

- 2018-10: $42.79 per share

- 2018-11: $46.16 per share

- 2018-12: $45.22 per share

- 2019-01: $59.30 per share

- 2019-02: $59.10 per share

- 2019-03: $60.24 per share

- 2019-04: $69.31 per share

- 2019-05: $68.20 per share

- 2019-06: $71.43 per share

- 2019-07: $70.29 per share

- 2019-08: $81.51 per share

- 2019-09: $83.32 per share

- 2019-10: $78.48 per share

- 2019-11: $72.27 per share

- 2019-12: $70.65 per share

- 2020-01: $79.74 per share

- 2020-02: $75.35 per share

- 2020-03: $45.15 per share

- 2020-04: $60.58 per share

- 2020-05: $83.42 per share

- 2020-06: $88.03 per share

- 2020-07: $114.11 per share

- 2020-08: $111.86 per share

- 2020-09: $116.17 per share

- 2020-10: $106.88 per share

- 2020-11: $108.05 per share

- 2020-12: $105.85 per share

- 2021-01: $106.71 per share

- 2021-02: $109.25 per share

- 2021-03: $149.31 per share

- 2021-04: $165.78 per share

- 2021-05: $180.81 per share

- 2021-06: $161.94 per share

- 2021-07: $170.90 per share

- 2021-08: $160.33 per share

- 2021-09: $141.91 per share

- 2021-10: $149.30 per share

- 2021-11: $143.66 per share

- 2021-12: $154.48 per share

- 2022-01: $124.51 per share

- 2022-02: $126.13 per share

- 2022-03: $97.68 per share

- 2022-04: $93.71 per share

- 2022-05: $97.99 per share

- 2022-06: $86.90 per share

- 2022-07: $112.80 per share

- 2022-08: $94.91 per share

- 2022-09: $81.37 per share

- 2022-10: $92.05 per share

- 2022-11: $99.34 per share

- 2022-12: $92.60 per share

- 2023-01: $113.85 per share

- 2023-02: $104.31 per share

- 2023-03: $114.03 per share

- 2023-04: $118.80 per share

- 2023-05: $113.77 per share

- 2023-06: $134.89 per share

- 2023-07: $138.75 per share

- 2023-08: $123.10 per share

- 2023-09: $99.49 per share

- 2023-10: $94.51 per share

- 2023-11: $118.07 per share

- 2023-12: $133.16 per share

- 2024-01: $118.01 per share

- 2024-02: $114.09 per share

- 2024-03: $116.37 per share

- 2024-04: $89.93 per share

- 2024-05: $96.00 per share

- 2024-06: $89.49 per share

- 2024-07: $115.07 per share

- 2024-08: $107.88 per share

- 2024-09: $118.52 per share

- 2024-10: $101.56 per share

- 2024-11: $109.49 per share

- 2024-12: $89.40 per share

- 2025-01: $89.28 per share

- 2025-02: $73.43 per share

- 2025-03: $66.47 per share

- 2025-04: $54.61 per share

- 2025-05: $50.10 per share

- 2025-06: $51.52 per share

- 2025-07: $53.27 per share

- 2025-08: $61.91 per share

- 2025-09: $51.71 per share

- 2025-10: $40.81 per share

- 2025-11: $52.02 per share

- 2025-12: $42.96 per share

- 2026-01: $50.11 per share

- 2026-02: $51.90 per share

- 2026-03: $39.53 per share

- 2026-04: $48.97 per share

- 2026-05: $47.81 per share

- 2026-06: $63.68 per share

- 2026-07: $54.57 per share

- 2026-08: $55.94 per share

- 2026-09: $46.64 per share

- 2026-10: $44.08 per share

## Annual estimated value (USD per share)

- FY2016: low $38.91 per share, central $44.07 per share, high $50.93 per share

- FY2017: low $53.44 per share, central $60.57 per share, high $70.05 per share

- FY2018: low $60.08 per share, central $68.27 per share, high $79.17 per share

- FY2019: low $71.39 per share, central $81.23 per share, high $94.32 per share

- FY2020: low $99.09 per share, central $112.75 per share, high $130.94 per share

- FY2021: low $172.10 per share, central $245.84 per share, high $288.79 per share

- FY2022: low $179.89 per share, central $256.98 per share, high $301.87 per share

- FY2023: low $148.62 per share, central $169.10 per share, high $196.36 per share

- FY2024: low $139.33 per share, central $158.49 per share, high $183.99 per share

- FY2025: low $72.95 per share, central $82.84 per share, high $96.02 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1580670/000158067026000019/lgih-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.