LGI Homes, Inc. cash flow to debt ratio of -8.45% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

LGI Homes, Inc.'s free cash flow has increased -3.29% from $-145.69M last year to $-140.90M, signaling increasing performance

LGI Homes, Inc.'s debt to equity ratio is 0.74, which means that the company's assets are unhealthy financed, signaling financial risk.

LGI Homes, Inc.'s debt has decreased relative to shareholder equity from 0.75 last year to 0.74 today, signaling strengthened financials

LGI Homes, Inc. has a net debt to EBITDA ratio of 15.52x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Interest expense is not separately reported in LGI Homes, Inc.'s latest filing, so interest coverage cannot be calculated.

LGI Homes, Inc.'s profit margin has decreased (56.44%) in the last year from 8.90% to 3.88%, signaling decreasing performance

LGI Homes, Inc.'s short-term assets of $3.61B exceed its short-term liabilities of $16.18M

LGI Homes, Inc.'s return on assets of 1.69% is lower than the 5.00% threshold, indicating inefficient asset utilization

LGI Homes, Inc.'s return on equity of 3.15%, is lower than 15.00%, indicating bad performance

LGI Homes, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

LGI Homes, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

LGI Homes, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

LGI Homes, Inc. has negative free cash flow, indicating cash burn

LGI Homes, Inc.'s yearly earnings has decreased 63.00% since last year from $196.07M to $72.55M, signaling decreasing performance

LGI Homes, Inc.'s yearly revenue has decreased 22.57% since last year from $2.20B to $1.71B, signaling decreasing performance

ROIC 1.35% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

LGI Homes, Inc.'s 3-year revenue CAGR of -9.55% is negative, indicating declining revenue over the past 3 years

LGI Homes, Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

LGI Homes, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

LGI Homes, Inc. has insufficient data to evaluate this check.

LGI Homes, Inc. has an earnings yield of 5.03%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

LGI Homes, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

LGI Homes, Inc. has an EV/EBITDA ratio of 28.33x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

LGI Homes, Inc. is overvalued relative to its fair value price of 45.12 based on Earnings Fair Value model

LGI Homes, Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

LGI Homes, Inc. has a price-to-book ratio of 0.62x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

LGI Homes, Inc. has a price-to-sales ratio of 0.77x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue