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.