LGI Homes Current Valuation vs. Shares Owned By Institutions

LGIH Stock  USD 91.20  0.93  1.03%   
Based on LGI Homes' profitability indicators, LGI Homes' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess LGI Homes' ability to earn profits and add value for shareholders. As of now, LGI Homes' Days Sales Outstanding is increasing as compared to previous years. The LGI Homes' current Sales General And Administrative To Revenue is estimated to increase to 0.06, while Price To Sales Ratio is projected to decrease to 1.30. As of now, LGI Homes' Net Income Per E B T is increasing as compared to previous years.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.290.2299
Significantly Up
Pretty Stable
Net Profit Margin0.0880.0845
Sufficiently Up
Slightly volatile
Operating Profit Margin0.10.0989
Fairly Up
Slightly volatile
Pretax Profit Margin0.110.111
Slightly Down
Slightly volatile
Return On Assets0.05550.0585
Notably Down
Slightly volatile
Return On Equity0.10.1073
Significantly Down
Slightly volatile
For LGI Homes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LGI Homes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LGI Homes utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LGI Homes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LGI Homes over time as well as its relative position and ranking within its peers.
  

LGI Homes' Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For more detail on how to invest in LGI Stock please use our How to Invest in LGI Homes guide.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LGI Homes. If investors know LGI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LGI Homes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.039
Earnings Share
8.36
Revenue Per Share
95.936
Quarterly Revenue Growth
0.056
Return On Assets
0.0402
The market value of LGI Homes is measured differently than its book value, which is the value of LGI that is recorded on the company's balance sheet. Investors also form their own opinion of LGI Homes' value that differs from its market value or its book value, called intrinsic value, which is LGI Homes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LGI Homes' market value can be influenced by many factors that don't directly affect LGI Homes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LGI Homes' value and its price as these two are different measures arrived at by different means. Investors typically determine if LGI Homes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LGI Homes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

LGI Homes Shares Owned By Institutions vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LGI Homes's current stock value. Our valuation model uses many indicators to compare LGI Homes value to that of its competitors to determine the firm's financial worth.
LGI Homes is rated fifth overall in current valuation category among its peers. It also is rated fifth overall in shares owned by institutions category among its peers . The ratio of Current Valuation to Shares Owned By Institutions for LGI Homes is about  42,070,743 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the LGI Homes' earnings, one of the primary drivers of an investment's value.

LGI Current Valuation vs. Competition

LGI Homes is rated fifth overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is now estimated at about 31.47 Billion. LGI Homes retains roughly 3.69 Billion in current valuation claiming about 12% of stocks in Consumer Discretionary industry.

LGI Shares Owned By Institutions vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

LGI Homes

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
3.69 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

LGI Homes

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
87.60 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.

LGI Shares Owned By Institutions Comparison

LGI Homes is currently under evaluation in shares owned by institutions category among its peers.

LGI Homes Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LGI Homes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LGI Homes will eventually generate negative long term returns. The profitability progress is the general direction of LGI Homes' change in net profit over the period of time. It can combine multiple indicators of LGI Homes, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income233.3 M202.9 M
Income Before Tax261.8 M208.8 M
Total Other Income Expense Net28.5 M29.9 M
Net Income Applicable To Common Shares375.6 M394.3 M
Net Income199.2 M162.4 M
Income Tax Expense62.5 M46.4 M
Net Income From Continuing Ops199.2 M190.4 M
Non Operating Income Net Other32.2 M33.8 M
Change To Netincome-1.1 M-1.1 M
Net Income Per Share 8.48  5.07 
Income Quality(0.29)(0.30)
Net Income Per E B T 0.76  0.85 

LGI Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on LGI Homes. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of LGI Homes position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the LGI Homes' important profitability drivers and their relationship over time.

Use LGI Homes in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if LGI Homes position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LGI Homes will appreciate offsetting losses from the drop in the long position's value.

LGI Homes Pair Trading

LGI Homes Pair Trading Analysis

The ability to find closely correlated positions to LGI Homes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LGI Homes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back LGI Homes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling LGI Homes to buy it.
The correlation of LGI Homes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as LGI Homes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LGI Homes moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for LGI Homes can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your LGI Homes position

In addition to having LGI Homes in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Silver Theme
Companies involved in mining, production, and distribution of silver and silver goods. The Silver theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Silver Theme or any other thematic opportunities.
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When determining whether LGI Homes offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LGI Homes' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lgi Homes Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lgi Homes Stock:
Check out Correlation Analysis.
For more detail on how to invest in LGI Stock please use our How to Invest in LGI Homes guide.
You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
To fully project LGI Homes' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LGI Homes at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include LGI Homes' income statement, its balance sheet, and the statement of cash flows.
Potential LGI Homes investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although LGI Homes investors may work on each financial statement separately, they are all related. The changes in LGI Homes's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on LGI Homes's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.