LGI Homes (LGIH) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
LGI Homes stock (LGIH) is currently trading at $39.34. LGI Homes PE ratio is 10.97. LGI Homes PS ratio (Price-to-Sales) is 0.46. Analyst consensus price target for LGIH is $65.50. WallStSmart rates LGIH as Underperform.
- LGIH PE ratio analysis and historical PE chart
- LGIH PS ratio (Price-to-Sales) history and trend
- LGIH intrinsic value — DCF, Graham Number, EPV models
- LGIH stock price prediction 2025 2026 2027 2028 2029 2030
- LGIH fair value vs current price
- LGIH insider transactions and insider buying
- Is LGIH undervalued or overvalued?
- LGI Homes financial analysis — revenue, earnings, cash flow
- LGIH Piotroski F-Score and Altman Z-Score
- LGIH analyst price target and Smart Rating
LGI Homes
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LGIH Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · LGI Homes (LGIH)
LGIH trades 187% above its Graham fair value of $21.22, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
LGI Homes (LGIH) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around return on equity and operating margin. Fundamentals are solid but monitor weak areas for improvement.
LGI Homes (LGIH) Key Strengths (4)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
Trading below book value, meaning the market prices it less than net assets
88.86% of shares held by major funds and institutions
Supporting Valuation Data
LGI Homes (LGIH) Areas to Watch (6)
Revenue declining -15.00%, a shrinking business
Earnings declining -65.10%, profits shrinking
Very low returns on shareholder equity
Near-zero operating margins, business under pressure
Very thin margins, barely profitable
Small-cap company with higher risk but more growth potential
LGI Homes (LGIH) Detailed Analysis Report
Overall Assessment
This company scores 50/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 10.0/10) while 6 fall into concern territory (avg 1.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, Price/Book. Valuation metrics including PEG Ratio (0.69), Price/Sales (0.46), Price/Book (0.38) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Return on Equity. Growth concerns include Revenue Growth at -15.00%, EPS Growth at -65.10%, which may limit upside. Profitability pressure is visible in Return on Equity at 3.51%, Operating Margin at 4.03%, Profit Margin at 4.25%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 3.51% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -15.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Price/Sales) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
LGIH Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
LGIH's Price-to-Sales ratio of 0.46x trades at a deep discount to its historical average of 1.21x (1th percentile). The current valuation is 92% below its historical high of 5.49x set in Dec 2013, and 8% above its historical low of 0.43x in Oct 2025. Over the past 12 months, the PS ratio has compressed from ~0.7x as trailing revenue scaled faster than the stock price.
Compare LGIH with Competitors
Top RESIDENTIAL CONSTRUCTION stocks by market cap
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Data-driven financial summary for LGI Homes (LGIH) · CONSUMER CYCLICAL › RESIDENTIAL CONSTRUCTION
The Big Picture
LGI Homes faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 1.7B with 15% decline year-over-year. Profit margins are strong at 425.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 351.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 425.0% and operating margin of 403.0% demonstrate strong pricing power and operational efficiency.
Revenue contracted 15% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Volatility is elevated with a beta of 1.79, so expect amplified moves relative to the broader market.
Debt management: total debt of 1.7B is significantly higher than cash (61M). Monitor refinancing risk.
Sector dynamics: monitor RESIDENTIAL CONSTRUCTION industry trends, competitive moves, and regulatory changes that could impact LGI Homes.
Bottom Line
LGI Homes faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About LGI Homes(LGIH)
NASDAQ
CONSUMER CYCLICAL
RESIDENTIAL CONSTRUCTION
USA
LGI Homes, Inc. designs, builds and sells homes in the United States. The company is headquartered in The Woodlands, Texas.