📊 LGIH Key Takeaways
Is LGI Homes, Inc. (LGIH) a Good Investment?
LGI Homes is experiencing severe operational distress with 22.6% YoY revenue decline and 63% YoY net income collapse, coupled with critically negative operating cash flow of -140M. The company cannot self-fund operations, faces liquidity constraints with only 61.2M cash against 1.7B debt, and operates in a cyclically weak homebuilding sector with thin 4.3% net margins.
Fundamentals have weakened materially: revenue fell 22.6% YoY and net income declined 63%, compressing margins and returns. Cash generation is negative and leverage is meaningful relative to cash, raising sensitivity to further demand or rate pressure. That said, the company remains profitable and carries a sizable equity base, providing runway to stabilize through the cycle.
Why Buy LGI Homes, Inc. Stock? LGIH Key Strengths
- Moderate debt-to-equity ratio of 0.79x provides some financial flexibility relative to peer highly leveraged homebuilders
- Established asset base of 3.9B and stockholders equity of 2.1B provides some balance sheet cushion
- Continued insider activity with 5 Form 4 filings in last 90 days
- Remains profitable with positive net income and operating income
- Moderate leverage (0.79x D/E) supported by $2.10B equity base
- Large asset base to support operations and potential cycle recovery
LGIH Stock Risks: LGI Homes, Inc. Investment Risks
- Negative operating cash flow of -140M indicates business cannot fund operations internally and faces sustainability crisis
- Catastrophic 63% YoY net income decline coupled with 22.6% revenue contraction signals severe market deterioration in homebuilding sector
- Critical liquidity risk with only 61.2M cash position against 1.7B long-term debt and negative free cash flow of -140.9M
- Profitability collapse with net margin at 4.3% and ROE/ROA at 3.5%/1.8% indicating poor capital allocation and returns
- Sharp revenue and EPS declines indicate demand softness and margin pressure
- Negative operating and free cash flow with low cash relative to debt
- Exposure to higher interest rates could further compress margins and liquidity
Key Metrics to Watch
- Operating cash flow trajectory - must return to positive to signal operational stability
- Revenue stabilization and housing market demand indicators
- Cash position adequacy and need for external financing or asset sales
- Debt refinancing ability and covenant compliance given negative cash generation
- Gross margin trajectory
- Operating cash flow and inventory working capital
LGI Homes, Inc. (LGIH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LGIH Profit Margin, ROE & Profitability Analysis
LGIH vs Market Sector: How LGI Homes, Inc. Compares
How LGI Homes, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LGI Homes, Inc. Stock Overvalued? LGIH Valuation Analysis 2026
Based on fundamental analysis, LGI Homes, Inc. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LGI Homes, Inc. Balance Sheet: LGIH Debt, Cash & Liquidity
LGIH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: LGI Homes, Inc.'s revenue has declined by 23% over the 5-year period, indicating business contraction. The most recent EPS of $8.42 reflects profitable operations.
LGIH Revenue Growth, EPS Growth & YoY Performance
LGIH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $396.6M | $4.0M | $0.85 |
| Q2 2025 | $483.5M | $4.0M | $1.36 |
| Q1 2025 | $351.4M | $4.0M | $0.17 |
| Q3 2024 | $617.5M | $17.1M | $2.84 |
| Q2 2024 | $602.5M | $17.1M | $2.25 |
| Q1 2024 | $390.9M | $17.1M | $0.72 |
| Q3 2023 | $547.1M | $27.0M | $2.84 |
| Q2 2023 | $645.3M | $27.0M | $2.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LGI Homes, Inc. Dividends, Buybacks & Capital Allocation
LGIH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for LGI Homes, Inc. (CIK: 0001580670)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LGIH
What is the AI rating for LGIH?
LGI Homes, Inc. (LGIH) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LGIH's key strengths?
Claude: Moderate debt-to-equity ratio of 0.79x provides some financial flexibility relative to peer highly leveraged homebuilders. Established asset base of 3.9B and stockholders equity of 2.1B provides some balance sheet cushion. ChatGPT: Remains profitable with positive net income and operating income. Moderate leverage (0.79x D/E) supported by $2.10B equity base.
What are the risks of investing in LGIH?
Claude: Negative operating cash flow of -140M indicates business cannot fund operations internally and faces sustainability crisis. Catastrophic 63% YoY net income decline coupled with 22.6% revenue contraction signals severe market deterioration in homebuilding sector. ChatGPT: Sharp revenue and EPS declines indicate demand softness and margin pressure. Negative operating and free cash flow with low cash relative to debt.
What is LGIH's revenue and growth?
LGI Homes, Inc. reported revenue of $1.7B.
Does LGIH pay dividends?
LGI Homes, Inc. does not currently pay dividends.
Where can I find LGIH SEC filings?
Official SEC filings for LGI Homes, Inc. (CIK: 0001580670) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LGIH's EPS?
LGI Homes, Inc. has a diluted EPS of $3.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LGIH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, LGI Homes, Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LGIH stock overvalued or undervalued?
Valuation metrics for LGIH: ROE of 3.5% (sector avg: 15%), net margin of 4.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LGIH stock in 2026?
Our dual AI analysis gives LGI Homes, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LGIH's free cash flow?
LGI Homes, Inc.'s operating cash flow is $-140.0M, with capital expenditures of $924.0K. FCF margin is -8.3%.
How does LGIH compare to other Market stocks?
Vs Default sector averages: Net margin 4.3% (avg: 12%), ROE 3.5% (avg: 15%), current ratio N/A (avg: 1.8).