LGI Homes Inc. Common Stock (LGIH)

FairStock Score: 36/100 — MIXED

Key Financials

Concerns

• Revenue declining at 15.0% year-over-year signals potential demand weakness or market share loss

AI Analysis

LGI Homes Inc. Common Stock is a micro-cap consumer cyclical company valued at $1.1 billion. The business generates $1.7 billion in annual revenue with a 1.0% net margin. From a quality standpoint, LGI shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.3 in the grey zone. On valuation, the stock is attractively valued at 14.5x earnings, with offers a 43% margin of safety vs Graham Number of $80. Growth dynamics show revenue growing at -15.0% and profit growth of -66.0%. Our composite FairStock Score of 36/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer