LGIH
Consumer CyclicalLGI Homes, Inc. · Residential Construction · $1B
What is LGI Homes, Inc.?
LGI Homes is a homebuilder focused on making homeownership accessible to first-time buyers across a broad footprint of U.S. markets. The company operates under two distinct brands targeting different buyer segments.
LGI Homes designs, constructs, and sells residential properties — primarily entry-level attached and detached homes marketed to first-time buyers, alongside an active adult community line. The company also operates a wholesale channel, building and selling homes directly to institutional buyers seeking single-family rental properties. Revenue is generated through home closings across communities in roughly twenty U.S. states, with a concentration in the Sun Belt and Southeast regions.
Founded in 2003 and headquartered in The Woodlands, Texas, LGI Homes has grown into a recognized name in the entry-level new-home market.
- Entry-level attached and detached homes under the LGI Homes brand
- Active adult communities for age-qualified buyers
- Luxury series homes under the Terrata Homes brand
- Wholesale home sales to single-family rental operators
Is LGIH a Good Stock to Buy?
UQS Score rates LGIH as Poor overall, reflecting broad weakness across most of the five scoring pillars.
Among the five pillars, Risk registers as the lone area of relative stability, suggesting the company's balance sheet and operational exposure are not at an extreme level compared to peers. This provides a modest floor in an otherwise challenged profile.
Quality, Moat, and Growth all carry Weak ratings, pointing to thin competitive differentiation and limited earnings durability. The Valuation pillar reads as Elevated, meaning the market price does not appear to offer a clear margin of safety given the underlying fundamentals.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does LGIH pay dividends?
No — LGI Homes, Inc. does not currently pay a dividend.
LGI Homes does not currently pay a dividend. As a growth-oriented homebuilder, the company has historically directed available capital toward land acquisition, community development, and expanding its geographic footprint rather than returning cash to shareholders through distributions. Income-focused investors should factor this into their evaluation.
When does LGIH report earnings?
LGI Homes reports earnings on a quarterly cadence, consistent with standard practice for U.S.-listed equities.
Results tend to be sensitive to housing demand cycles, mortgage rate movements, and regional construction costs. Investors should monitor community count trends and closing volumes as leading indicators of revenue direction.
For the most recent quarter's results and guidance commentary, visit LGI Homes' investor relations page directly.
LGIH Price History
-75.0% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in LGI Homes, Inc.?
Based on LGI Homes, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
LGIH Long-term Outlook
The UQS Growth pillar for LGIH carries a Weak rating, suggesting the near-term fundamental trajectory faces headwinds rather than tailwinds. Elevated valuation relative to the underlying quality profile creates an unfavorable setup if housing demand softens further. The Neutral Risk rating provides some reassurance that near-term financial stress is not the primary concern, but sustained improvement across Quality and Moat pillars would be needed to shift the overall outlook.
Growth drivers
- Continued demand for affordable entry-level housing in Sun Belt and Southeast markets
- Expansion of the wholesale single-family rental channel as institutional demand persists
- Geographic diversification into new states reducing regional concentration risk
Key risks
- Elevated valuation leaving limited cushion if closing volumes disappoint
- Weak moat profile making it difficult to defend margins against larger, better-capitalized builders
- Mortgage rate sensitivity disproportionately affecting the entry-level buyer segment LGI targets
LGIH vs Peers
LGI Homes competes in the production homebuilding space alongside several other builders targeting similar price points and geographies.
Dream Finders operates an asset-light land model that reduces capital intensity compared to traditional builders like LGI.
Beazer targets a broader buyer spectrum including move-up buyers, giving it a somewhat different demand profile than LGI's entry-level focus.
Hovnanian has a longer operating history and serves multiple buyer segments across more markets, though it carries a more complex capital structure.
Frequently Asked Questions
What does LGI Homes do?
LGI Homes designs, builds, and sells residential homes across roughly twenty U.S. states. The company focuses primarily on entry-level buyers through its LGI Homes brand, offers luxury homes under the Terrata Homes brand, and sells homes wholesale to institutional single-family rental operators.
Does LGIH pay dividends?
No, LGI Homes does not currently pay a dividend. The company has prioritized reinvesting capital into land, community development, and geographic expansion. Investors seeking regular income distributions should note this absence when evaluating LGIH.
When does LGIH report earnings?
LGI Homes follows a standard quarterly reporting cadence. Specific dates are not covered by our data source — check the company's investor relations page or a financial calendar for the most current schedule.
Is LGIH a good stock to buy?
UQS Score rates LGIH as Poor, driven by Weak readings across Quality, Moat, and Growth pillars alongside an Elevated Valuation. That combination warrants careful scrutiny. The full pillar breakdown, available to Pro members, provides a more detailed view of where the risks are concentrated.
Is LGIH overvalued?
The UQS Valuation pillar for LGIH is rated Elevated, suggesting the current market price is not well-supported by the underlying fundamental profile. When Valuation is Elevated alongside Weak Quality and Growth ratings, the risk-reward balance tends to be unfavorable.
How does LGIH compare to its competitors?
Among the homebuilders in its peer group — including Dream Finders Homes, Beazer Homes, and Hovnanian Enterprises — LGIH's UQS profile currently sits at the lower end. Each competitor carries its own capital structure and buyer-segment mix. The UQS comparison tool on each ticker's page shows side-by-side pillar ratings.
What is LGIH's market cap bracket?
LGI Homes is classified as a small-cap company. This places it below the large national builders in terms of scale, which can mean less pricing power and greater sensitivity to regional housing market swings.
Who founded LGI Homes?
LGI Homes was founded in 2003. Founding and leadership history is publicly available through the company's official website and SEC filings for those seeking detailed background on its origins.
Is LGIH a long-term quality indicator?
From a long-term quality standpoint, LGIH's current UQS profile — with Weak ratings on Quality, Moat, and Growth — suggests the business has not yet demonstrated the durable competitive advantages typically associated with strong long-term compounders. Monitoring pillar improvement over time is a more useful frame than short-term price movement.
What is the main competitive advantage of LGI Homes?
LGI Homes has built its business around a streamlined, high-volume approach to entry-level homebuilding, targeting buyers who may not have considered new construction. However, the UQS Moat pillar rates this advantage as Weak, indicating limited structural differentiation relative to peers in the sector.
What sector does LGIH belong to?
LGI Homes is classified under the Consumer Cyclical sector, specifically within the residential construction industry. This means its business performance is closely tied to broader economic conditions, consumer confidence, and mortgage rate environments.
Is LGIH a growth stock or value stock?
Based on UQS pillar ratings, LGIH does not fit neatly into either category. The Growth pillar is rated Weak, limiting its growth stock credentials, while the Valuation pillar is Elevated — making a value framing equally difficult to support at current levels.
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Pro Analysis
LGIH — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 28.8 | 13.2 | 16.0 | 29.7 | 40.0 | 63.9 | -1.0 |
| May 10, 2026 | 29.8 | 5.2 | 16.0 | 29.7 | 36.9 | 86.7 | -0.1 |
| May 8, 2026 | 29.9 | 5.2 | 16.0 | 29.7 | 36.9 | 87.2 | +1.1 |
| May 7, 2026 | 28.8 | 13.3 | 16.0 | 29.7 | 40.3 | 63.5 | +0.2 |
| May 6, 2026 | 28.6 | 13.3 | 16.0 | 29.7 | 40.3 | 62.0 | 0.0 |
| May 3, 2026 | 28.6 | 13.3 | 16.0 | 29.7 | 40.3 | 62.1 | -0.4 |
| May 2, 2026 | 29.0 | 13.3 | 16.0 | 29.7 | 40.3 | 64.7 | +1.4 |
| May 1, 2026 | 27.6 | 13.3 | 16.0 | 26.3 | 40.3 | 60.0 | +5.8 |
| Apr 26, 2026 | 21.8 | 13.3 | 16.0 | 20.8 | 40.3 | 28.5 | -0.2 |
| Apr 19, 2026 | 22.0 | 13.3 | 16.0 | 20.8 | 40.3 | 29.8 | -0.5 |
LGIH — Pillar Breakdown
Quality
— 13.2/100 (25%)LGI Homes, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 29.7/100 (20%)LGI Homes, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 40.0/100 (15%)LGI Homes, Inc. has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 64.1/100 (15%)LGI Homes, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 16/100 (25%)LGI Homes, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for LGIH.
Score Composition
Financial Data
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How is the LGIH UQS Score Calculated?
The UQS (Unified Quality Score) for LGI Homes, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses LGI Homes, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether LGI Homes, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.