LGI HomesFRA:LG1 -1.75%66 Beneish M-Score is -0.79 as of Jul. 07, 2026. GuruFocus rates FRA:LG1 with a GF Score™ of 66/100 and a GF Value™ of €59.43 (Modestly Undervalued). The stock has 12 warning signs investors should review. Among 89 Homebuilding & Construction companies, LGI Homes ranks worse than 88.76% on this metric.
The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Warning Sign:
Beneish M-Score -0.79 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for LGI Homes's Beneish M-Score or its related term are showing as below:
FRA:LG1'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.79 Med: -1.59 Max: -0.41
Current: -0.79
During the past 13 years, the highest Beneish M-Score of LGI Homes was -0.41. The lowest was -2.79. And the median was -1.59.
LGI Homes Beneish M-Score Related Terms
LGI Homes Beneish M-Score Historical Data
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The historical data trend for LGI Homes's Beneish M-Score 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.
FRA:LG1 vs DFH, HOV, BZH: Beneish M-Score Comparison
For the Residential Construction subindustry, LGI Homes's Beneish M-Score, along with its competitors' market caps and Beneish M-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 Beneish M-Score vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where LGI Homes's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of LGI Homes for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 2.6997
+
0.528 * 1.173
+
0.404 * 1.2267
+
0.892 * 0.7176
+
0.115 * 1.3085
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1.0457
+
4.679 * 0.030382
-
0.327 * 0.9988
=
-0.82
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(3.057 / (3.057 + 62.396))
/
(3.996 / (3.996 + 107.956))
=
0.046705
/
0.035694
=
1.3085
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(60.787 - 15.495
-
-60.098)
/
3468.793
=
0.030382
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
LGI Homes has a M-score of -0.82 signals that the company is likely to be a manipulator.
LGI Homes (FRA:LG1) has a Beneish M-Score of -0.79 as of Jul. 07, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on LGI Homes and its competitors. According to the industry distribution chart, LGI Homes ranks #79 out of 89 companies in the Homebuilding & Construction industry, placing it in the top 88.8%.
Is LGI Homes' Beneish M-Score too high?
LGI Homes' current Beneish M-Score is -0.79. Based on the distribution chart, LGI Homes ranks #79 out of 89 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, LGI Homes has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGI Homes' Beneish M-Score compare to DFH and HOV?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #79 out of 89 companies for Beneish M-Score. This places LGI Homes in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Homebuilding & Construction company?
A good Beneish M-Score depends on the Homebuilding & Construction industry context. However, Beneish M-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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on LGI Homes and its competitors. LGI Homes's current Beneish M-Score is -0.79. 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 (FRA:LG1) is currently considered Modestly Undervalued. The stock's GF Value™ is €59.43, compared to a current price of €52.82 — trading 11.1% below its estimated fair value. The current Beneish M-Score is -0.79. LGI Homes' overall GF Score™ is 66/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For LGI Homes (FRA:LG1), the current Beneish M-Score is -0.79 as of Jul. 07, 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 (FRA:LG1) Overvalued in 2026?
Based on GuruFocus' analysis, LGI Homes stock appears to be undervalued.
The current stock price of €52.82 is trading 11.1% below its estimated GF Value™ of €59.43.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for FRA:LG1:
Beneish M-Score: -0.79
GF Value™: €59.43 vs. price of €52.82 (11.1% below fair value)
No single metric tells the full story. See the FRA:LG1 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.
66GF Score
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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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