Bedrijfsoverzicht
LGI Homes, Inc. is a prominent player in the United States residential construction market, focusing on the design, construction, and sale of new housing units across the country. The company operates within the Consumer Cyclical sector, specifically targeting the Residential Construction industry, which links its performance directly to broader economic cycles and housing demand. This entity employs a workforce of 1,056 individuals and holds a market capitalization of $919.54M, reflecting its position as a mid-sized public company in the housing space. With annual revenue reaching $1.71B, the company's scale indicates a significant operational footprint, though the valuation suggests a modest market premium relative to its sales volume. The specific focus on entry-level, attached, and detached homes alongside luxury offerings under the Terrata Homes brand demonstrates a diversified product strategy within a single-industry framework.
Financiële gezondheid
The company reported a total revenue of $1.71B over the trailing twelve months, generating a net income of $72.55M and an EBITDA of $87.56M. The substantial gap between the $1.71B revenue and the $72.55M net income reveals a cost structure where operating expenses, including construction costs and overhead, consume a significant portion of gross receipts, leaving a compressed profit layer. Free cash flow stands at -$131,216,128, which indicates a period of negative liquidity generation where cash outflows for operations or capital expenditures exceed cash inflows, potentially limiting immediate financial flexibility for expansion or debt reduction. Despite this cash burn, the company maintains a cash balance of $61.25M, though this is heavily offset by total debt of $1.66B, resulting in a debt-to-equity ratio of 79.28%. This high leverage ratio signifies a heavily leveraged balance sheet where the company relies significantly on borrowed capital to fund its operations and asset base. Profitability is further contextualized by a gross margin of 20.9%, an operating margin of 4.0%, and a profit margin of 4.3%, all of which indicate that the company retains only a small fraction of revenue after covering the direct costs of construction and general administrative expenses. Liquidity is supported by a current ratio of 51.00, suggesting that the company possesses ample short-term assets relative to its current liabilities to meet obligations. However, return on equity stands at 3.5% and return on assets at 1.4%, metrics that reveal management effectiveness is currently constrained by the high capital base and low profitability margins typical of the heavy construction model.
Waarderingsbeoordeling
Valuation metrics show a trailing P/E ratio of 12.74 compared to a forward P/E of 11.56, implying that the market expects earnings to expand in the future to justify the current share price, although the drop from trailing to forward multiples suggests anticipated improvements in profitability. The price-to-book ratio is recorded at 0.44, indicating that the stock trades at a significant discount to its book value, which often reflects market caution regarding the asset quality or future earnings stability in the construction sector. Alternative valuation measures include a price-to-sales ratio of 0.54 and an EV/EBITDA of 28.78, suggesting that investors are pricing the company based on conservative revenue multiples while maintaining a high multiple on earnings before interest, taxes, and depreciation. The stock has traded between a 52-week high of $69.50 and a 52-week low of $33.55, meaning the current share price sits somewhere within this wide range, reflecting significant volatility over the past year. The beta value of 1.86 indicates that the stock is nearly twice as volatile as the broader market, exposing investors to amplified price swings during periods of economic uncertainty or sector-specific shifts.
Growth & Income
Growth dynamics are characterized by a revenue growth rate of -15.0% year-over-year and an earnings growth rate of -65.1% year-over-year, showing that earnings are contracting at a much faster pace than revenue, which implies rising operational inefficiencies or margin compression. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning all available earnings are retained within the business rather than distributed to shareholders. This retention strategy suggests the company prioritizes internal reinvestment into its construction projects or debt management over immediate income distribution to investors. Overall, the growth and income profile presents a challenging environment with declining revenues and no dividend support, requiring investors to rely solely on potential capital appreciation or future margin recovery for returns.