LGI Homes, Inc. (LGIH) AI Stock Analysis

LGI Homes, Inc. operates in the residential real estate sector, specializing in designing, constructing, and selling homes across the United States. The company serves various market segments under its flagship LGI Homes brand, offering entry-level attached and detached homes, along with active adult lifestyle housing branded as Terrata Homes. LGI Homes also operates a wholesale business building and selling homes to entities acquiring single-family rental properties. Headquartered in The Woodlands, Texas, the company owned and operated 101 communities across states including Texas, Arizona, Florida, and Georgia as of December 31, 2021.

LGI Homes generated revenue of $3.05B in FY2021, which dropped to $2.30B in FY2022 before rising to $2.36B in FY2023. Revenue fell 6.6% in FY2024 to $2.20B and declined another 22.6% in FY2025 to $1.71B, reflecting a 5-year revenue CAGR of -6.4%. Net income contracted from $429.6M in FY2021 to $72.6M in FY2025, as net margin dropped from 14.1% to 4.3%. Operating margin decreased from 18.0% in FY2021 to 4.7% in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue increased 5.7% year-over-year, while quarterly earnings declined 14.6%.

As of June 30, 2026, LGI Homes held $61.1M in cash and short-term investments against total debt of $1.59B, resulting in net debt of $1.52B. Shareholders' equity stood at $2.13B, with a debt-to-equity ratio of 0.74 and a current ratio of 18.06. Free cash flow was -$140.9M in FY2025, alongside operating cash flow of -$140.0M. During FY2025, the company spent $924,000 on capital expenditures and allocated $23.6M to share buybacks, reducing its share count by 5.4% over 5 years.

At a last close of $43.01, LGI Homes has a market capitalization of $999.9M and an enterprise value of $2.65B. The stock trades at a trailing P/E of 15.1x and a forward P/E of 18.8x, compared to medians of 18.0x and 14.1x for its US-listed Consumer Cyclical peers. Its EV to EBITDA ratio is 37.6x compared to the peer median of 11.1x. Over the past year, the stock fell 4.9%, underperforming the S&P 500 (SPY) gain of 16.8%, and is down 69.0% over five years against an 83.0% gain for the index.

LGI Homes has 2 covering analyst ratings, consisting of 1 Buy and 1 Hold. The mean price target is $93.00, representing an upside of 116.2% over the last close of $43.01. For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.78 and revenue of $1.81B. For the next fiscal year, the consensus estimates an EPS of $3.42 on revenue of $2.02B. Over the last 4 quarters, the company beat EPS estimates 1 time. The next earnings date is November 3, 2026.

This page is an AI-written research summary of LGI Homes, Inc. (LGIH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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