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LGI HomesLGIH -5.52%68 Cash Ratio is 0.47 as of Jun. 2026, which is 4% below its 10-year median of 0.49. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $65.78 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 92 Homebuilding & Construction companies, LGI Homes ranks better than 61.96% on this metric.
LGI Homes has a Cash Ratio of 0.47. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for LGI Homes's Cash Ratio or its related term are showing as below:
LGIH'
s Cash Ratio Range Over the Past 10 Years
Min: 0.1 Med: 0.49 Max: 1.8
Current: 0.47
During the past 13 years, LGI Homes's highest Cash Ratio was 1.80. The lowest was 0.10. And the median was 0.49.
LGIH's Cash Ratio is ranked better than 61.96% of 92
companies
in the Homebuilding & Construction industry
Industry Median: 0.32
vs LGIH: 0.47
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
LGI Homes Cash Ratio Related Terms
LGI Homes Cash Ratio Historical Data
* Premium members only.
The historical data trend for LGI Homes's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Residential Construction subindustry, LGI Homes's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LGI Homes Cash Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Cash Ratio distribution charts can be found below:
* The bar in red indicates where LGI Homes's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LGI Homes (LGIH) has a Cash Ratio of 0.47 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on LGI Homes and its competitors. This is near median its historical median of 0.49. Over the past decade, LGI Homes' Cash Ratio has ranged from 0.10 to 1.80. According to the industry distribution chart, LGI Homes ranks #35 out of 92 companies in the Homebuilding & Construction industry, placing it in the top 38%.
Is LGI Homes' Cash Ratio too high?
LGI Homes' current Cash Ratio of 0.47 is near median its 10-year median of 0.49. Over the past 10 years, this metric has ranged from a low of 0.10 to a high of 1.80. The Homebuilding & Construction industry median Cash Ratio is 0.32. LGI Homes' value of 0.47 is 46.9% above this industry median. Based on the distribution chart, LGI Homes ranks #35 out of 92 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, LGI Homes has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGI Homes' Cash Ratio compare to DFH and BXBL?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #35 out of 92 companies for Cash Ratio. This puts LGI Homes in the upper half of its industry. The industry median Cash Ratio is 0.32. LGI Homes' value of 0.47 is 46.9% above this benchmark. Historically, LGI Homes' own Cash Ratio has ranged from 0.10 to 1.80 over the past decade. While the company's 10-year median is 0.49 vs. the industry median of 0.32, LGI Homes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Homebuilding & Construction company?
The median Cash Ratio among Homebuilding & Construction companies is 0.32, based on 92 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Cash Ratio of 0.47 is 46.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median Cash Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Cash Ratio is 0.47, which is near median its own 10-year median of 0.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGI Homes stock overvalued right now?
Based on GuruFocus' analysis, LGI Homes (LGIH) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.78, compared to a current price of $56.70 — trading 13.8% below its estimated fair value. The current Cash Ratio is 0.47, which is near median its 10-year median of 0.49 and 46.9% above the Homebuilding & Construction industry median of 0.32. LGI Homes' overall GF Score™ is 68/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For LGI Homes (LGIH), the current Cash Ratio is 0.47 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LGI Homes (LGIH) Overvalued in 2026?
Based on GuruFocus' analysis, LGI Homes stock appears to be undervalued.
The current stock price of $56.70 is trading 13.8% below its estimated GF Value™ of $65.78.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Cash Ratio: 0.47 (near median its 10-year median of 0.49)
GF Value™: $65.78 vs. price of $56.70 (13.8% below fair value)
Industry Position: 46.9% above the Homebuilding & Construction median (#35 of 92)
No single metric tells the full story. See the LGIH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LGI Homes Inc is engaged in the design, construction, and sale of new homes in markets. The company's current product offerings include entry-level homes, including both detached homes and townhomes, and move-up homes sold, which are sold under the LGI Homes brand, and luxury series homes, which are sold under the Terrata Homes brand. It offers a set number of floor plans in each community with features that include upgrades, such as granite countertops, appliances, and ceramic tile flooring. The company has seven operating segments: West, Northwest, Central, Midwest, Florida, Southeast, and Mid-Atlantic. The majority of the revenue is generated from the Central division segment.
68GF Score
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