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LGI Homes
(NASDAQ:LGIH)
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Rating:54Neutral
Price Target:
$46.00
▼(-20.99% Downside)
Action:Reiterated
Date:10/15/26
Overall score reflects pressured financial performance (material margin/ROE compression and historically volatile cash flow) and weak technicals (below key moving averages with negative momentum). These are partly offset by a positive earnings-call backdrop with raised margin/ASP guidance, stronger backlog, and continued deleveraging, while valuation appears broadly moderate (P/E ~15.8).
Positive Factors
Expanded liquidity flexibility
The amended credit facility extends most lender commitments to 2030 and adds $175 million of incremental capacity. Longer maturities and greater revolving access improve funding flexibility for land, construction, and other capital needs through the housing cycle.
Negative Factors
Profitability compression
The sharp decline in net margin and return on equity shows that the existing business is generating substantially less profit from revenue and invested capital than in earlier periods. This weaker earnings power can constrain reinvestment and reduce resilience if conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Expanded liquidity flexibility
The amended credit facility extends most lender commitments to 2030 and adds $175 million of incremental capacity. Longer maturities and greater revolving access improve funding flexibility for land, construction, and other capital needs through the housing cycle.
Read all positive factors
LGI Homes (LGIH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$987.35M
Dividend YieldN/A
Average Volume (3M)361.95K
Price to Earnings (P/E)14.8
Beta (1Y)0.93
Revenue Growth-16.52%
EPS Growth-57.00%
CountryUS
Employees1,056
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)2.86
Shares Outstanding23,248,272
10 Day Avg. Volume446,935
30 Day Avg. Volume361,952
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.48
Price to Sales (P/S)0.58
P/FCF Ratio-7.07
Enterprise Value/Market Cap3.05
Enterprise Value/Revenue1.76
Enterprise Value/Gross Profit9.09
Enterprise Value/Ebitda31.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.94
Revenue Forecast (FY)$1.81B
LGI Homes Business Overview & Revenue Model
Company Description
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 ...
How the Company Makes Money
LGI Homes primarily makes money by selling newly constructed homes to individual homebuyers. Revenue is recognized from home sales, which generally include the base home price plus revenue from selected upgrades/options and, in some cases, homes s...
LGI Homes Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed multiple operational and financial positives: delivery and revenue growth, a materially stronger backlog, margin outperformance and raised gross margin and ASP guidance, continued deleveraging and liquidity, and productive community-level results. These positives were tempered by softer order entry, a sharply higher cancellation rate, and demand headwinds tied to affordability and mortgage rates. On balance, the upbeat execution, improved backlog and margin guidance, and stronger balance sheet position outweigh the demand-related challenges.Positive Updates
Quarterly Home Deliveries and Revenue Growth
Delivered 1.44k homes in Q2, up 9% year-over-year; 1.36k of those drove homebuilding revenue of $502M, up 4% year-over-year. Additional 75 closings (leased/currently leased homes) contributed to other income.
Negative Updates
Order Entry Weakness
Net orders for the quarter were roughly ~1.04k (down ~4.8% year-over-year), reflecting softer demand amid affordability pressure and higher mortgage rates.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Home Deliveries and Revenue Growth
Delivered 1.44k homes in Q2, up 9% year-over-year; 1.36k of those drove homebuilding revenue of $502M, up 4% year-over-year. Additional 75 closings (leased/currently leased homes) contributed to other income.
Read all positive updates
Company Guidance
Management raised full‑year guidance and reiterated targets: they expect annual closings of 4,600–5,400 homes and 150–160 active communities by year‑end; they raised average selling price guidance by $5,000 at both ends to $360,000–$370,000; SG&A is expected to be 15–16% of revenue; homebuilding gross margin guidance was increased by 50 basis points to 19–21% and adjusted homebuilding gross margin was raised by 50 basis points to 22.5–24.5% (the second consecutive quarter of margin upgrades). They also reported 25 July closings pending verification (bringing year‑to‑date closings to ~2,780), saying the company is on track to meet these full‑year targets.LGI Homes Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.71B | 2.20B | 2.36B | 2.30B | 3.05B |
| Gross Profit | 330.85M | 353.55M | 533.29M | 542.19M | 646.60M | 818.03M |
| EBITDA | 96.60M | 102.81M | 262.02M | 264.16M | 419.69M | 543.93M |
| Net Income | 66.17M | 72.55M | 196.07M | 199.23M | 326.57M | 429.64M |
Balance Sheet | ||||||
| Total Assets | 3.92B | 3.93B | 3.76B | 3.41B | 3.12B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 61.08M | 61.25M | 53.20M | 48.98M | 32.00M | 50.51M |
| Total Debt | 1.59B | 1.66B | 1.52B | 1.46B | 1.41B | 810.57M |
| Total Liabilities | 1.79B | 1.83B | 1.72B | 1.55B | 1.48B | 956.02M |
| Stockholders Equity | 2.13B | 2.10B | 2.04B | 1.86B | 1.64B | 1.40B |
Cash Flow | ||||||
| Free Cash Flow | 131.01M | -140.90M | -145.69M | -58.41M | -371.64M | 19.97M |
| Operating Cash Flow | 132.56M | -139.97M | -143.74M | -56.97M | -370.45M | 21.70M |
| Investing Cash Flow | 51.39M | 27.94M | 15.62M | -13.65M | -5.97M | -70.39M |
| Financing Cash Flow | -182.43M | 120.08M | 132.34M | 87.60M | 357.90M | 63.26M |
LGI Homes Technical Analysis
Negative
58.22
Price Trends
50.14
Negative
53.87
Negative
50.46
Negative
Market Momentum
-2.34
Negative
41.47
Neutral
39.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGIH, the sentiment is Negative. The current price of 58.22 is above the 20-day moving average (MA) of 44.67, above the 50-day MA of 50.14, and above the 200-day MA of 50.46, indicating a bearish trend. The MACD of -2.34 indicates Negative momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 39.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LGIH.
LGI Homes Risk Analysis
LGI Homes disclosed 53 risk factors in its most recent earnings report. LGI Homes reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LGI Homes Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $4.18B | 13.37 | 6.38% | 2.91% | -13.27% | -45.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $1.65B | 12.65 | 5.21% | 2.16% | -8.37% | -45.09% | |
54 Neutral | $987.35M | 14.83 | 3.15% | ― | -16.52% | -57.00% | |
52 Neutral | $2.86B | 12.96 | 5.93% | 2.13% | -20.80% | -50.30% | |
51 Neutral | $927.98M | 6.49 | 9.41% | ― | -12.20% | -54.76% |
* Consumer Cyclical Sector Average
LGIH
LGI Homes
42.47
-3.09
-6.78%
KBH
KB Home
47.05
-14.97
-24.13%
MTH
Meritage
64.19
-5.27
-7.58%
CCS
Century Communities
57.92
-4.11
-6.63%
DFH
Dream Finders Homes
10.25
-12.94
-55.80%
LGI Homes Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
LGI Homes Expands Credit Facility, Enhances Liquidity Flexibility
Positive
Oct 14, 2026
On October 9, 2026, LGI Homes, Inc. executed a Seventh Amendment to its Fifth Amended and Restated Credit Agreement with a syndicate of lenders and Wells Fargo Bank as administrative agent, extending the maturity of certain lender commitments to O...
Business Operations and StrategyFinancial Disclosures
LGI Homes Raises Outlook After Strong Second Quarter
Positive
Aug 4, 2026
LGI Homes reported strong second-quarter 2026 results on August 4, 2026, underscoring momentum in its U.S. homebuilding operations despite a dynamic market. The company delivered 1,440 homes in the quarter, up 8.8% year over year, with homebuildin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.