Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 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

Clean

Earnings quality

Forensic signals

19.5

P / E (ttm)

3.5%

ROE

$1.3B

Market cap

-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 (red flags, auditor quality, say on pay, board independence). 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, 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.

1.6%

FY2025

Return on invested capital. Return on invested capital is 1.6% in the latest fiscal year and slipping from 11% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.

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%

Net Margin4.3%

Free Cash Flow-$140.9M

Return on Equity3.5%

Debt / Equity0.79x

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.