LGIH (LGI Homes) Moat Score: 5/10 (As of Jul. 02, 2026)


LGIH LGI Homes Inc LGIH
68 GF Score
Price $60.87
GF Value $70.84
Valuation Modestly Undervalued
! 12 Warning Signs
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What is LGI Homes Moat Score?

LGI Homes LGIH -4.46% 68 Moat Score is 5 as of Jul. 02, 2026. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $70.84 (Modestly Undervalued). The stock has 12 warning signs investors should review. Among 102 Homebuilding & Construction companies, LGI Homes ranks better than 94.12% on this metric.

LGI Homes has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

LGI Homes has Narrow Moat: LGI Homes Inc benefits from economies of scale and a strong brand in the homebuilding industry. However, it faces intense competition and lacks significant regulatory barriers or unique intellectual property.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes LGI Homes might have Narrow Moat - Solid narrow moat.

LGI Homes  (NAS:LGIH) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

LGI Homes Moat Score Related Terms

LGIH vs DFH, HOV, BZH: Moat Score Comparison

For the Residential Construction subindustry, LGI Homes's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Moat Score distribution charts can be found below:

* The bar in red indicates where LGI Homes's Moat Score falls into.


LGIH
68GF Score
LGI Homes Inc LGIH
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
LGI Homes (LGIH) has a Moat Score of 5 as of Jul. 02, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, LGI Homes ranks #6 out of 102 companies in the Homebuilding & Construction industry, placing it in the top 5.9%.
Is LGI Homes' Moat Score too high?
LGI Homes' current Moat Score is 5. Based on the distribution chart, LGI Homes ranks #6 out of 102 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. 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' Moat Score compare to DFH and HOV?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #6 out of 102 companies for Moat Score. This places LGI Homes in the top 6% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Homebuilding & Construction company?
A good Moat Score depends on the Homebuilding & Construction industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. LGI Homes's current Moat Score is 5. 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 $70.84, compared to a current price of $60.87 — trading 14.1% below its estimated fair value. The current Moat Score is 5. LGI Homes' overall GF Score™ is 68/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For LGI Homes (LGIH), the current Moat Score is 5 as of Jul. 02, 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 $60.87 is trading 14.1% below its estimated GF Value™ of $70.84. GuruFocus considers LGI Homes to be Modestly Undervalued.

Key valuation signals for LGIH:

  • Moat Score: 5
  • GF Value™: $70.84 vs. price of $60.87 (14.1% below fair value)
  • GF Score™: 68/100 with 12 warning signs

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 Business Description

Other Exchanges 0JSI:UKLG1:Germany
Address 1450 Lake Robbins Drive, Suite 430, The Woodlands, TX, USA, 77380
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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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$60.87
Price
$70.84
GF Value