LGI Homes, Inc.
- Open
- 55.95
- Day high
- 57.24
- Day low
- 55.81
- Prev close
- 57.50
- Volume
- 223K
- Mkt cap
- $1.3B
- P/E (TTM)
- 19.5
- EPS (TTM)
- $2.86
- P/B
- 0.6
- P/S
- 0.8
- Yield
- —
- Per share
- —
LGI Homes, Inc. (LGIH) is a Consumer Cyclical company listed on NASDAQ. The stock is down 6% over the past year. Drillr has 1 published research article covering LGIH.
LGI Homes, Inc. (LGIH) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LGIH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 4, 2026 | $0.98 | $1.16 | +18.7% | $516M | +5.5% |
| Apr 28, 2026 | $0.19 | $0.24 | +26.3% | $320M | -2.6% |
| Feb 17, 2026 | $0.96 | $0.97 | +1.0% | $474M | +32.4% |
| Nov 4, 2025 | $0.94 | $0.85 | -9.6% | $397M | -20.7% |
| Apr 30, 2024 | $1.06 | $0.72 | -32.1% | $690M | +72.6% |
| Feb 20, 2024 | $2.54 | $2.19 | -13.8% | $608M | -7.0% |
| May 2, 2023 | $1.28 | $1.14 | -10.7% | $487M | +4.9% |
| Feb 21, 2023 | $1.73 | $1.45 | -16.2% | $488M | -8.1% |
| Nov 1, 2022 | $3.51 | $3.85 | +9.6% | $547M | -9.7% |
| Aug 2, 2022 | $4.29 | $5.20 | +21.2% | $723M | +0.8% |
| May 3, 2022 | $2.78 | $3.25 | +16.9% | $546M | +2.4% |
| Feb 15, 2022 | $4.20 | $4.53 | +7.9% | $801M | +5.7% |
LGIH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Mar 10, 2026 | Lipar Eric Thomasdirector, 10 percent owner, officer: CEO and Chairman of the Board | Sell | 1,274 | $42.55 |
| Mar 10, 2026 | Lipar Eric Thomasdirector, 10 percent owner, officer: CEO and Chairman of the Board | Sell | 1,878 | $42.40 |
| Mar 10, 2026 | Lipar Eric Thomasdirector, 10 percent owner, officer: CEO and Chairman of the Board | Sell | 17,686 | $41.54 |
| Mar 10, 2026 | Snider Michael Larryofficer: President and COO | Sell | 307 | $42.55 |
| Mar 10, 2026 | Garber Scott Jamesofficer: General Counsel and Secretary | Sell | 323 | $43.41 |
| Mar 10, 2026 | Lipar Eric Thomasdirector, 10 percent owner, officer: CEO and Chairman of the Board | Grant | 35,622 | — |
| Mar 10, 2026 | Merdian Charles Michaelofficer: CFO and Treasurer | Sell | 1,720 | $43.41 |
| Mar 10, 2026 | Snider Michael Larryofficer: President and COO | Sell | 1,431 | $43.41 |
| Mar 10, 2026 | Merdian Charles Michaelofficer: CFO and Treasurer | Grant | 11,218 | — |
| Mar 10, 2026 | Garber Scott Jamesofficer: General Counsel and Secretary | Sell | 961 | $41.54 |
| Mar 10, 2026 | Snider Michael Larryofficer: President and COO | Grant | 12,128 | — |
| Mar 10, 2026 | Garber Scott Jamesofficer: General Counsel and Secretary | Sell | 69 | $42.55 |
| Mar 10, 2026 | Garber Scott Jamesofficer: General Counsel and Secretary | Grant | 4,545 | — |
| Mar 10, 2026 | Merdian Charles Michaelofficer: CFO and Treasurer | Sell | 5,122 | $41.54 |
| Mar 10, 2026 | Snider Michael Larryofficer: President and COO | Sell | 404 | $42.55 |
Source: LGIH SEC Form 4 filings, latest Mar 10, 2026. For informational purposes only — not investment advice.
See the full LGIH insider & 13F page →LGI Homes, Inc. company profile
Overview
LGI Homes, Inc. (NASDAQ:LGIH) is a residential homebuilder founded in 2003 and headquartered in The Woodlands, Texas. The company went public in November 2013 and has grown to become a significant player in the entry-level and affordable housing market across the United States. LGI Homes operates in 36 markets across 21 states, focusing primarily on first-time homebuyers and those seeking affordable housing options. The company has built a reputation for maintaining strong operational efficiency and has never taken an inventory impairment as either a public or private company.
Business
LGI Homes operates in the residential construction industry, specifically focusing on the design, construction, and sale of new homes. The homebuilding industry involves acquiring land, developing residential communities, constructing homes, and selling them to end consumers. This is a capital-intensive business that requires significant upfront investment in land acquisition and development before generating revenue from home sales. The company operates two primary business segments. The LGI Homes brand represents approximately 90% of the business and focuses on entry-level homes targeted at first-time homebuyers. These homes typically range from attached and detached single-family residences to active adult communities, with average selling prices around $360,000-$370,000. The Terrata Homes brand represents the luxury segment, offering higher-end homes for move-up buyers seeking premium features and locations. Additionally, LGI Homes operates a wholesale business that accounts for approximately 9-18% of total closings depending on market conditions. This segment involves building and selling homes in bulk to companies looking to acquire single-family rental properties, providing an alternative revenue stream that helps optimize production capacity and cash flow timing. The company's business model centers on developing entire residential communities rather than just building individual homes. LGI Homes typically acquires raw land, handles the development process including infrastructure and utilities, and then constructs homes within these communities. This vertically integrated approach allows the company to capture both development profits and homebuilding margins, which is a key differentiator in their business strategy.
Revenue model
LGI Homes generates revenue primarily through direct home sales to individual consumers, with the majority of customers being first-time homebuyers seeking affordable housing options. The company's revenue model is based on product sales, where they sell completed homes at fixed prices typically ranging from $360,000 to $370,000 on average. The company's customers are primarily households earning between $60,000 and $100,000 annually, though current market conditions have created affordability challenges that have priced out some potential buyers in this income range. LGI Homes addresses these challenges by offering significant incentives, including mortgage rate buy-downs worth approximately $20,000 per home, closing cost assistance, and other financing incentives to help customers qualify for purchases. Several factors significantly impact LGI Homes' profitability margins. Interest rate fluctuations directly affect customer affordability and demand, with higher mortgage rates requiring increased incentives that compress margins. Land acquisition costs and availability represent a major input cost, as the company must secure developable land in desirable locations at reasonable prices. Construction material costs and labor availability affect build costs, with supply chain disruptions and labor shortages potentially increasing expenses. The company's unique advantage comes from its vertically integrated model where it captures both development and construction profits. By developing entire communities rather than purchasing finished lots, LGI Homes can achieve gross margins in the 23-27% range, significantly higher than many competitors who only focus on homebuilding. However, this model also requires substantial upfront capital investment and carries development risk, as the company must accurately forecast demand and manage the timing of community openings to optimize absorption rates.
Competitive moat
LGI Homes operates in the highly competitive and fragmented homebuilding industry, where establishing a strong moat is challenging due to the cyclical nature of the business and relatively low barriers to entry for competitors with sufficient capital. However, the company has developed several competitive advantages that provide some protection. The company's primary moat stems from its vertically integrated development model and operational expertise in targeting the entry-level market segment. By controlling the entire process from land acquisition through home delivery, LGI Homes can optimize costs and capture developer profits that pure homebuilders cannot access. Their focus on standardized floor plans and efficient construction processes allows for economies of scale and faster build times compared to custom builders. LGI Homes has also built geographic market expertise in its 36 markets across 21 states, developing relationships with local suppliers, contractors, and understanding regional buyer preferences. This local knowledge and established supply chain relationships create some switching costs and operational advantages over new entrants. However, the company's moat is relatively narrow and faces significant competitive pressures. Large national homebuilders like D.R. Horton, Lennar, and PulteGroup have substantially more resources and can compete aggressively on pricing and land acquisition. Local and regional builders often have deep community relationships and can be more nimble in responding to local market conditions. Additionally, the cyclical nature of housing demand means that even well-positioned companies can face significant challenges during economic downturns or periods of rising interest rates. The company's focus on the entry-level market, while providing some insulation from luxury market volatility, also exposes it to economic sensitivity as their target customers are often most affected by job market changes and credit tightening. Overall, LGI Homes operates in a competitive industry with modest defensive characteristics.
Risks & safety
LGI Homes presents a moderate margin of safety profile with some concerning liquidity trends but strong asset backing. • Liquidity concerns: The company has generated negative free cash flow in recent quarters (-$128M in Q1 2025, -$146M for FY 2024), indicating significant cash consumption for land development and inventory buildup • Debt levels: Debt-to-equity ratio of approximately 0.80, which is manageable but elevated for a cyclical business. Total liabilities of $1.8B against $2.0B in equity • Cash position: Relatively low cash balance of $58M against $3.6B in current assets, suggesting potential liquidity pressure if market conditions deteriorate • Asset quality: Strong current ratio of 26.2 driven by substantial inventory holdings ($3.6B in current assets), though this represents illiquid land and work-in-progress inventory • Valuation metrics: Trading at P/E of 97x based on recent low earnings, though this reflects cyclical trough conditions. Price-to-book ratio of 0.76 suggests trading below book value • Operational risks: High sensitivity to interest rate changes and housing market cycles, with significant fixed costs in land development and community infrastructure The company's substantial land inventory provides asset backing but represents illiquid investments that could face impairment in a severe downturn.
Recent development
Over the past few years, LGI Homes has pursued an aggressive expansion strategy focused on geographic diversification and community count growth. The company has significantly expanded its footprint from operating in fewer markets to reaching 36 markets across 21 states, with recent additions including Salt Lake City, Utah. This geographic expansion strategy aims to reduce dependence on any single regional market and capture growth opportunities in diverse economic conditions. The most significant strategic initiative has been the dramatic increase in active communities, growing from 117 communities at the end of 2023 to 151 communities by the end of 2024, representing a 29% year-over-year increase. The company plans to continue this expansion with expectations of reaching 160-170 active communities in 2025, representing another 10-20% growth rate. This expansion requires substantial capital investment in land acquisition and development but is intended to drive long-term volume growth. LGI Homes has also made significant investments in human capital, particularly in sales force expansion and training. The company hired 60 new salespeople in a single training class in July 2024 and has focused heavily on developing sales team capabilities to support the growing community count. This investment in personnel reflects the company's recognition that successful community absorption requires experienced local sales teams. In response to challenging market conditions with high mortgage rates and affordability constraints, LGI Homes has adapted its product strategy by introducing smaller square footage homes to improve affordability while maintaining quality standards. The company has also significantly increased customer incentives, offering mortgage rate buy-downs worth approximately $20,000 per home and various closing cost assistance programs to help customers qualify for purchases. The company has maintained its focus on the entry-level market while continuing to develop its Terrata luxury brand, though the primary emphasis remains on affordable housing for first-time homebuyers. LGI Homes has also strategically utilized its wholesale business as a flexibility mechanism, adjusting the proportion of bulk sales to rental companies based on market conditions and cash flow needs.
LGIH company profile · for informational purposes only — not investment advice.
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