LGI Homes Inc ($LGIH) Possible Buy to $115 Confident Investor Rating: Good

Company name LGI Homes Inc
Stock ticker LGIH
Live stock price [stckqut]LGIH[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $88.77
Target stock price (averages with growth) $121.18
Target stock price (averages with no growth) $82.31
Target stock price (manual assumptions) $469.4

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/lgih

LGI Homes, Inc., incorporated on June 26, 2013, is a homebuilder and land developer. The Company is engaged in the design, construction, marketing and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington, and Tennessee. The Company operates through five segments: the Texas division, the Southwest division, the Southeast division, the Florida division, and the Northwest division. The Texas division includes homebuilding operations in Houston, Dallas/Fort Worth, San Antonio and Austin locations. The Southwest division includes homebuilding operations in Phoenix, Tucson, Albuquerque, Denver and Colorado Springs locations. The Southeast division includes homebuilding operations in Atlanta, Charlotte and Nashville locations. The Florida division includes homebuilding operations in Tampa, Orlando, Fort Myers and Jacksonville locations. The Northwest division includes homebuilding operations in Seattle location.

The Company's product offerings include entry-level homes and move-up homes sold under its LGI Homes brand, and its luxury series homes, which are sold under its Terrata Homes brand. As of December 31, 2016, the Company had 59 active communities with its LGI Homes brand and four with its Terrata Homes brand. The Company provides information regarding floor plans and pricing, credit and income qualifications and conduct tours of its homes. In addition, it provides each homebuyer with an introduction to the community and the surrounding area, providing them with information regarding utilities, schools, homeowners association dues and restrictions, local entertainment and nearby dining and shopping options. It offers a set number of floor plans in each community with features that include upgrades, such as granite countertops, appliances and ceramic tile flooring.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in LGI Homes Inc as long as the indicators that I describe in my book The Confident Investor are favorable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of LGI Homes Inc calculated?

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I hope that this makes you a Confident Investor.

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