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Upturn AI SWOT - About
LGIH 
LGI Homes (LGIH)
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Upturn Advisory Summary
03/27/2025: LGIH (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 1.58% | Avg. Invested days 38 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.54B USD | Price to earnings Ratio 7.92 | 1Y Target Price 106.67 |
Price to earnings Ratio 7.92 | 1Y Target Price 106.67 | ||
Volume (30-day avg) 316798 | Beta 2.14 | 52 Weeks Range 65.31 - 125.83 | Updated Date 03/30/2025 |
52 Weeks Range 65.31 - 125.83 | Updated Date 03/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 8.3 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.9% | Operating Margin (TTM) 8.34% |
Management Effectiveness
Return on Assets (TTM) 3.77% | Return on Equity (TTM) 10.07% |
Valuation
Trailing PE 7.92 | Forward PE 10.05 | Enterprise Value 3008684674 | Price to Sales(TTM) 0.7 |
Enterprise Value 3008684674 | Price to Sales(TTM) 0.7 | ||
Enterprise Value to Revenue 1.37 | Enterprise Value to EBITDA 13.98 | Shares Outstanding 23397100 | Shares Floating 20463081 |
Shares Outstanding 23397100 | Shares Floating 20463081 | ||
Percent Insiders 12.28 | Percent Institutions 86.81 |
Analyst Ratings
Rating 2.67 | Target Price 110.5 | Buy 1 | Strong Buy - |
Buy 1 | Strong Buy - | ||
Hold 3 | Sell 1 | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
LGI Homes
Company Overview
History and Background
LGI Homes was founded in 2003 and is based in The Woodlands, Texas. It focuses on entry-level buyers and designs, constructs, and sells homes in the U.S. They have grown through strategic land acquisitions and efficient building processes.
Core Business Areas
- Homebuilding: LGI Homes focuses on constructing and selling single-family detached homes. Their strategy centers on affordability and first-time homebuyers. They offer a variety of floor plans and home designs in targeted communities.
Leadership and Structure
The CEO of LGI Homes is Eric Lipar. The company operates with a regional structure, allowing for localized decision-making and responsiveness to market conditions. Their management team is focused on growth and efficiency.
Top Products and Market Share
Key Offerings
- Entry-Level Homes: LGI Homes' primary offering consists of affordable, single-family homes targeted at first-time homebuyers. They focus on delivering value and simplifying the home buying process. Their market share is concentrated in specific geographic regions where they operate. Competitors include D.R. Horton (DHI), Lennar (LEN), and PulteGroup (PHM).
Market Dynamics
Industry Overview
The homebuilding industry is cyclical and highly dependent on economic conditions, interest rates, and consumer confidence. Demand is influenced by demographic trends, population growth, and housing affordability.
Positioning
LGI Homes is positioned as a value-driven homebuilder catering to entry-level buyers. Their competitive advantage lies in their focus on affordability, efficient construction practices, and targeted marketing.
Total Addressable Market (TAM)
The TAM for new home sales in the US is estimated to be hundreds of billions of dollars annually. LGI Homes targets a specific segment of this market, focusing on affordable housing. They are positioned to capture a share of this growing segment as demand increases, though rising interest rates and economic uncertainty can impact the TAM.
Upturn SWOT Analysis
Strengths
- Focus on entry-level homebuyers
- Efficient construction processes
- Strategic land acquisitions
- Strong marketing capabilities
- Vertical integration
Weaknesses
- Geographic concentration
- Dependence on first-time homebuyers
- Vulnerability to interest rate fluctuations
- Limited brand recognition compared to larger builders
- Reliance on external suppliers
Opportunities
- Expansion into new markets
- Increased demand for affordable housing
- Technological advancements in construction
- Partnerships with financial institutions
- Government incentives for homebuyers
Threats
- Economic downturns
- Rising interest rates
- Increased competition
- Land scarcity
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- DHI
- LEN
- PHM
- NVR
- TOL
Competitive Landscape
LGI Homes competes with larger, more established homebuilders like D.R. Horton and Lennar. Their advantage lies in their focus on affordability, while their disadvantage is smaller brand recognition.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: LGI Homes has experienced significant growth in revenue and home closings over the past decade.
Future Projections: Analyst estimates suggest continued growth for LGI Homes, but it is dependent on the economic climate.
Recent Initiatives: LGI Homes has focused on expanding its geographic footprint and improving operational efficiency.
Summary
LGI Homes targets the entry-level market with efficient construction practices, a growth focused model, and strategic land acquisitions. The rising rates and economic downturn may impact revenue. LGIH does not pay dividends which may turn away some investors. The business model seems reasonable to sustain long term.
Similar Companies
- DHI
- LEN
- PHM
- NVR
- TOL
Sources and Disclaimers
Data Sources:
- LGI Homes Investor Relations
- SEC Filings
- Industry Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market conditions are constantly changing.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About LGI Homes
Exchange NASDAQ | Headquaters The Woodlands, TX, United States | ||
IPO Launch date 2013-11-07 | Chairman & CEO Mr. Eric Thomas Lipar | ||
Sector Consumer Cyclical | Industry Residential Construction | Full time employees 1170 | Website https://www.lgihomes.com |
Full time employees 1170 | Website https://www.lgihomes.com | ||
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.
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