Download PDF

1. Company Snapshot

1.a. Company Description

LGI Homes, Inc.designs, constructs, and sells homes.It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name.


The company also engages in the wholesale business, which include building and selling homes to companies looking to acquire single-family rental properties.As of December 31, 2021, it owned 101 communities.The company serves customers in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, and Pennsylvania.


LGI Homes, Inc.was founded in 2003 and is headquartered in The Woodlands, Texas.

Show Full description

1.b. Last Insights on LGIH

Breaking News: LGI Homes Inc. has been in the news recently due to insider activity. Representative Tim Moore, a North Carolina Republican, bought shares of LGI Homes on November 4th, acquiring between $15,001 and $50,000 worth of stock. However, he also sold shares of the company on November 5th, unloading between $50,001 and $100,000. There is no recent earnings release available for LGI Homes. No analyst recommendation is available based on the provided data.

1.c. Company Highlights

2. LGI Homes' Q3 2025 Earnings: Margin Stability and Growth Prospects

LGI Homes reported third-quarter 2025 results in line with guidance, with 1,107 homes closed and revenue of $397 million. The company's gross margin was 21.5%, and adjusted gross margin was 24.5%. Earnings per share (EPS) came in at $0.85, slightly below estimates of $0.94. Despite operating in a challenging market, LGI Homes maintained its margins due to a thoughtful approach to financing incentives, competitive pricing, and avoiding sacrifices to institutional land bankers.

Publication Date: Nov -15

📋 Highlights
  • Margin Stability Amid Challenges: Maintained gross margin at 21.5% and adjusted gross margin at 24.5% despite market pressures.
  • Order Growth Acceleration: Net orders surged 44% sequentially (8% YoY) driven by sales initiatives and inventory discounts.
  • Land Cost Advantage: Owned 62,564 lots at an average finished cost of $70,000, supporting margin resilience and long-term supply (10 years).
  • Strong Liquidity Position: Total liquidity of $429.9 million, including $367.9 million under credit facility, with 45.7% debt-to-capital ratio.

Operational Highlights

The top markets for LGI Homes were Charlotte, Las Vegas, Raleigh, Greenville, and Denver, with closings per community per month ranging from 3.5% to 5.7%. Net orders increased 8% year-over-year and 44% sequentially, driven by improved sales trends and initiatives such as a forward rate buy-down commitment and price discounts on select older inventory. The company's backlog was up 20% year-over-year and 62% sequentially, indicating a strong foundation for future growth.

Land Position and Capital Structure

LGI Homes' land position consists of 62,564 owned and controlled lots, with an average finished lot cost of approximately $70,000. This low basis provides a competitive advantage and supports margin stability. The company's capital position is strong, with $1.75 billion of debt outstanding and a debt-to-capital ratio of 45.7%. Total liquidity was $429.9 million, including $62 million of cash and $367.9 million available under the credit facility.

Outlook and Valuation

LGI Homes expects to close between 1,300 and 1,500 homes in the fourth quarter, with an average sales price ranging from $365,000 to $375,000. Gross margin is expected to range between 21% and 22%, and adjusted gross margin between 24% and 25%. With a current P/E Ratio of 10.68 and an estimated revenue growth rate of 17.1% for next year, the company's valuation appears reasonable. Additionally, the P/S Ratio is 2.02, and EV/EBITDA is 24.3, indicating that the market is pricing in a moderate growth trajectory.

Growth Prospects and SG&A

LGI Homes expects 10% to 15% community count growth, primarily driven by Florida, Texas, and California, with the growth spread equally throughout 2026. The company has been averaging around $30 million in quarterly SG&A expenses since the beginning of 2024 and expects incremental dollars for installing information centers, hiring new staff, and office managers as they bring in new community counts. However, this is expected to be similar to the expected revenue percentage, indicating a stable SG&A-to-revenue ratio.

3. NewsRoom

Card image cap

Hyster-Yale (NYSE:HY) Shares Acquired Rep. Tim Moore

Dec -04

Source: defenseworld.net

Card image cap

Rep. Tim Moore Purchases Shares of Genprex (NASDAQ:GNPX)

Dec -04

Source: defenseworld.net

Card image cap

Rep. Tim Moore Sells Off Shares of Harley-Davidson, Inc. (NYSE:HOG)

Dec -04

Source: defenseworld.net

Card image cap

Harley-Davidson (NYSE:HOG) Shares Acquired Rep. Tim Moore

Dec -04

Source: defenseworld.net

Card image cap

LGI Homes (NASDAQ:LGIH) Shares Unloaded Rep. Tim Moore

Dec -04

Source: defenseworld.net

Card image cap

Rep. Tim Moore Sells Off Shares of Verizon Communications Inc. (NYSE:VZ)

Dec -04

Source: defenseworld.net

Card image cap

Rep. Tim Moore Sells Off Shares of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)

Dec -04

Source: defenseworld.net

Card image cap

Rep. Tim Moore Purchases Shares of Hyster-Yale, Inc. (NYSE:HY)

Dec -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.44%)

6. Segments

Retail Home

Expected Growth: 8.5%

LGI Homes' Retail Home segment growth of 8.5% is driven by increasing demand for affordable housing, strategic expansion into new markets, and a focus on customer service. Additionally, the company's efficient construction process and cost-effective land acquisition strategy contribute to its growth. Furthermore, the segment benefits from a strong brand reputation and a wide range of floor plans and pricing options.

Wholesale Home

Expected Growth: 7.77%

LGI Homes' Wholesale Home segment growth of 7.77% is driven by increasing demand for affordable housing, strategic partnerships with national homebuilders, and expansion into new markets. Additionally, the company's focus on providing high-quality homes at competitive prices, coupled with its efficient construction process, has enabled it to capitalize on the growing trend of institutional investors entering the single-family rental market.

7. Detailed Products

New Home Construction

LGI Homes, Inc. builds and sells new single-family homes in various communities across the United States.

Entry-Level Homes

LGI Homes, Inc. offers affordable, entry-level homes designed for first-time homebuyers and those on a budget.

Move-Up Homes

LGI Homes, Inc. builds and sells larger, more luxurious homes for growing families or those looking to upgrade.

Active Adult Communities

LGI Homes, Inc. develops and sells homes in age-restricted communities designed for active adults aged 55 and older.

Land Acquisition and Development

LGI Homes, Inc. acquires and develops land for future home construction, ensuring a steady supply of new homes.

8. LGI Homes, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LGI Homes, Inc. is medium due to the presence of alternative housing options such as apartments and condominiums. However, the company's focus on affordable and quality homes reduces the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the homebuying market. LGI Homes, Inc. has a strong brand presence and a wide range of home designs, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large suppliers of building materials. However, LGI Homes, Inc. has established relationships with its suppliers, reducing the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the homebuilding industry. LGI Homes, Inc. has a strong brand presence and established relationships with suppliers, making it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established homebuilders in the market. LGI Homes, Inc. competes with other homebuilders on factors such as price, quality, and location, increasing the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.25%
Debt Cost 8.48%
Equity Weight 57.75%
Equity Cost 13.27%
WACC 11.25%
Leverage 73.15%

11. Quality Control: LGI Homes, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
The Cheesecake Factory

A-Score: 6.0/10

Value: 5.3

Growth: 5.0

Quality: 6.6

Yield: 4.0

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Legacy Housing

A-Score: 5.3/10

Value: 6.0

Growth: 5.9

Quality: 7.8

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Hovnanian

A-Score: 3.8/10

Value: 8.6

Growth: 4.6

Quality: 5.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Beazer Homes USA

A-Score: 3.7/10

Value: 7.8

Growth: 3.9

Quality: 3.8

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
LGI Homes

A-Score: 3.4/10

Value: 8.1

Growth: 3.7

Quality: 4.6

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
United Homes

A-Score: 2.5/10

Value: 6.8

Growth: 2.7

Quality: 3.5

Yield: 0.0

Momentum: 1.5

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.38$

Current Price

50.38$

Potential

-0.00%

Expected Cash-Flows