LGI Homes, Inc. (LGIH) Stock

LGI Homes, Inc. (LGIH) is a Industrials stock trading at $53.45 (as of 2026-09-02), with a market capitalization of $1.24B and a trailing P/E of 17.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

LGI Homes, Inc. designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to companies looking to acquire single-family rental properties. As of December 31, 2021, it owned 101 communities. The company serves customers in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, and Pennsylvania. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

Understand LGI Homes, Inc.: how it makes money

LGI Homes builds and sells entry-level, active-adult, and luxury single-family homes under two brands, plus a wholesale arm supplying rental-property buyers. Revenue is volume-driven across 144 active Sun Belt communities, where closings per site and cancellation rates determine whether the model earns or loses money.

Profit is the spread between land plus construction cost and the sale price, captured only on homes that actually close; with the cancellation rate up 16.7 points year over year, the builder must continuously refill its pipeline with new orders just to sustain the closings that generate the 19% gross margin.

Business quality (Weak): Operating margin sits at roughly breakeven (-0.2%) on declining revenue, yet management has raised gross-margin guidance two quarters in a row and is deleveraging, so the quality picture is improving from a low base but has not yet demonstrated durability.

Valuation: At 24× earnings, LGIH trades in line with the Construction average (23×).

Bull case

Margin trajectory inflecting up: Management raised gross-margin guidance for the second consecutive quarter, and the company is now running a 19% gross margin on roughly $300M of quarterly revenue, suggesting unit economics are improving even in a soft market.
Backlog locks in future closings: Management cited backlog growth as providing substantial forward-closing visibility, with full-year guidance of 4,600 to 5,400 homes across 150 to 160 communities, giving investors a narrowed range of expected revenue.
Balance sheet gaining flexibility: Deleveraging has improved balance-sheet flexibility and reduced leverage, which matters for a capital-intensive builder that must fund land and construction before collecting on closings.

Bear case

Cancellations threatening the pipeline: The cancellation rate rose 16.7 percentage points year over year, meaning a growing share of committed buyers are walking away. That directly undermines the backlog that supports the 4,600 to 5,400 home closing guidance.
Mortgage rates capping affordability: Higher mortgage rates remain a direct sales headwind, consistent with the 9% year-over-year revenue decline to $300M in the quarter and with orders falling even as customer interest in homeownership persists.
Land gap stretches to 2028: Improved land opportunities primarily affect community growth from 2028 onward, leaving the current base of roughly 144 communities to absorb any volume expansion before the next wave of sites is ready.

Valuation — source: SEC EDGAR (first-party)
Price	$53.45
Market Cap	$1.24B
P/E Ratio	17.6
EV / EBITDA	14.2
Price / Book	0.59
Price / Sales	0.74
FCF Yield	-11.3%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.71B
Net Margin	4.3%
Revenue Growth (YoY)	-9.0%
EPS Growth (YoY)	-47.1%
FCF Growth (YoY)	-56.1%

Valuation vs Sector & Industry
Stock P/E	17.6
Sector P/E (Industrials)	25.7
Industry P/E (Construction)	22.8
vs Sector	-31.7%
vs Industry	-23.0%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($135.84M)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Industrials
Industry	Construction
CEO	Eric Thomas Lipar
Employees	1,000
Country	US
IPO Date	2013-11-07

Related Companies (Construction; 8 comparable construction companies)

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.