I think LGI Homes Inc ($LGIH) is a Possible Buy. It currently should be $137. 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 Fair
EBITDA growth Good
Price growth Good
R&D growth Poor
Income growth Good
Assets growth Good
Return on Assets growth Poor
Income / Rev growth Poor
TWCA Plus Good
Standard TWCA Good
Weighted ann. stock price increase Good

 

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $131.39
Target stock price (averages with growth) $299.19
Target stock price (averages with no growth) $273.87
Target stock price (manual assumptions) $191.85

 

The following company description is from Reuters: https://finance.yahoo.com/quote/lgih/profile?p=lgih

LGI Homes, Inc. designs, constructs, and sells homes in the United States. It offers entry-level homes, such as detached and attached homes, and move-up homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. As of March 31, 2020, it owned 113 communities. The company serves in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, and Virginia. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

 

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?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $85.05
  • Growth: 0.2
  • Current EPS (TTM): $13.6804103344674
  • P/E: 9.07638521659333
  • Future EPS Calc: $34.04
  • Future Stock Price Calc: $308.97
  • Target stock price: $191.84

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I hope that this makes you a Confident Investor.

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