LGI Homes, Inc. engages in the design, construction, and sale of homes in the United States. It markets and sells attached and detached entry-level homes and active adult offerings under the LGI Homes brand; and luxury homes under the Terrata Homes brand. The company also engages in the wholesale business, which includes building and selling homes to large institutions interested in acquiring single-family rental properties. It operates 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. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.
Market Headwinds | LGI Homes grapples with high interest rates and affordability issues, impacting sales and financial performance in the lower-income homebuyer segment |
Valuation Discrepancy | Despite challenges, LGIH stock shows resilience, trading at 0.75 times book value, potentially undervalued compared to peers in the small and mid-cap space |
Strategic Pivot | Explore LGI Homes' shift towards inventory management and community count growth, aiming to align operations with market realities and position for future opportunities |
Analyst Outlook | Price targets range from $75 to $140, with projections of improved ROE to 15% by 2026, reflecting varied views on LGIH's recovery potential and long-term prospects |
Metrics to compare | LGIH | Sector Sector - Average of metrics from a broad group of related Consumer Cyclicals sector companies | Relationship RelationshipLGIHPeersSector | |
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P/E Ratio | 6.6x | 9.6x | 11.1x | |
PEG Ratio | −0.34 | 0.31 | 0.02 | |
Price/Book | 0.5x | 1.0x | 1.4x | |
Price / LTM Sales | 0.5x | 1.4x | 1.0x | |
Upside (Analyst Target) | 89.9% | 44.3% | 21.3% | |
Fair Value Upside | Unlock | 6.4% | 8.6% | Unlock |