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We are engaged in the design, construction and sale of new homes in markets 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. Our management team has been in the residential land development business since the…
$58.48
$2.56 (-4.19%)
EOD Jul 17, 2026
Operating margin is thin at 4.68%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 22.6% YoY. Margins deteriorated 5.0pp alongside, both lines moving the wrong way.
ROIC dropped from 4.50% to 1.48%, capital efficiency is deteriorating. Negative free cash flow of -$141M. The business is consuming cash, not generating it.
19.2x earnings. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.67B
▼ -22.6% YoY
Net Income (TTM)
$71M
▼ -63.0% YoY
Op. Margin
4.72%
▼ -5.0pp YoY
ROIC
1.38%
▼ -3.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$69M
▲ +3.3% YoY
Op. Cash Flow (TTM)
-$68M
▲ +2.6% YoY
Net Debt
$1.65B
Cash & Equiv.
$61M
5Y CAGR: -6.4%
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At a P/E of 19.2, LGI Homes (LGIH)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, LGI Homes scores 19/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full . This is analysis, not investment advice.
LGI Homes scores 19 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 4.7% operating margin and a 1.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. you should weigh LGIH's valuation and scores 19/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.