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LGI Homes

LGIH
40
Residential Construction · Consumer Cyclical
Also trades as: 0JSI.L GBP 0.42 (-0.86%)
Price
$42.47
-0.30 (-0.70%)
Market Cap
$987.4M
Exchange
NASDAQ
Winston Score
40
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 25, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Weak
5/30
Growth
Weak
1/20
Cash Flow
Strong
8/10
Stability
Strong
8/10
Valuation
Good
6/10
Ownership
Good
10/15
Dividends
Not counted
n/a

38 of 95 counted points = Winston Score 40. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count falling — buybacks

−6.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 24.9M (2021) → 23.3M (2025)

§Winston Score History

The full picture

LGI Homes is a homebuilder that focuses on selling affordable, entry-level homes to first-time buyers across the United States. The company builds communities of single-family houses in suburban and exurban areas, targeting renters who want to become homeowners. It is one of the larger entry-level focused homebuilders in the country, known for its direct marketing approach that converts renters into buyers.

LGI makes money by building and selling homes, with revenue tied directly to how many homes it closes each quarter. The company operates in more than 20 states, primarily in the Sun Belt region including Texas, Florida, and the Southeast, with a market cap around $1.3 billion. Its competitive edge comes from a streamlined, high-volume building process and a sales model targeting a large pool of underserved first-time buyers — but rising mortgage rates remain a significant risk, as higher borrowing costs directly reduce affordability for the budget-conscious customers LGI depends on.

Politician Trades

9 trades / 12mo

6 Congressional buys and 3 sells on LGIH in the last 12 months.

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Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
19.7%
Thin — 19.7% gross margin
Profit after running costs
Operating Margin
5.6%
Thin — 5.6% operating margin
Return on the money invested
ROCE
1.8%
Weak — 1.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
-16.5%
Shrinking sales (-16.5% YoY)
Profit growth
EPS YoY
-56.9%
Earnings shrinking (-56.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
200%
Turns 200% of profit into real cash
Spare cash per sale
FCF Margin
7.7%
Modest free cash flow (7.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.74
Moderate — manageable debt (0.74)
Covers its interest
Interest Cover
100.00x
—
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
14.8x
Attractive valuation — P/E 14.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+1.0
GROWING
Earnings roughly flat

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Dividends

Not applicable for this business.
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