Forensic Analysis · Homebuilders & Residential Construction · as of Nov 8, 2026
Lgi Homes, Inc. (LGIH)
A forensic read on Lgi Homes, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
3
Forensic signals
3.5%
ROE
-22.6%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Lgi Homes, Inc. earns a D (Weak — demands caution) forensic quality grade. 3 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
-0.73×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was -0.73× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
1.6%
FY2025
Return on invested capital.Return on invested capital is 1.6% in the latest fiscal year and slipping across FY2023–FY2025 from 5.8%. After-tax operating profit was $178M in FY2023 and $59M in FY2025, with operating income at 9.9% of revenue in FY2023, 9.6% in FY2024 and 4.7% in FY2025. The capital base behind it grew +17% across FY2023–FY2025, from $3.1B to $3.6B, while the return fell 4.2 points, so the dollars added over that window earned less than the 5.8% the older base was already earning.
FCF ($141M)
FY2025
Shareholder returns.Returned $24M to shareholders (buybacks + dividends) in FY2025, but free cash flow was ($141M) after capex — there was no free cash flow to fund the payout from at all, and operating cash flow itself was negative or zero that year too. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
Key fundamentals
Latest Revenue$1.71B
Revenue Growth YoY-22.6%
Revenue CAGR (2yr)-15.0%
Net Margin4.3%
Free Cash Flow-$140.9M
Return on Equity3.5%
Debt / Equity0.79x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Lgi Homes, Inc.'s actual 10-K/10-Q/8-K filings?