Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
LGI HomesLGIH -4.01%68 Net-Net Working Capital is $2.44 as of Jun. 2026. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $66.19 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 33 Homebuilding & Construction companies, LGI Homes ranks worse than 3030300% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
LGI Homes's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $2.44.
The industry rank for LGI Homes's Net-Net Working Capital or its related term are showing as below:
LGIH's Price-to-Net-Net-Working-Capital is not ranked
in the Homebuilding & Construction industry.
Industry Median: 7.25
vs LGIH: 24.31
LGI Homes (NAS:LGIH) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
LGI Homes Net-Net Working Capital Related Terms
LGI Homes Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for LGI Homes's Net-Net Working Capital 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.
LGIH vs DFH, BXBL, BZH: Net-Net Working Capital Comparison
For the Residential Construction subindustry, LGI Homes's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where LGI Homes's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $2.44 mean?
LGI Homes (LGIH) has a Net-Net Working Capital of $2.44 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on LGI Homes According to the industry distribution chart, LGI Homes ranks #999999 out of 33 companies in the Homebuilding & Construction industry.
Is LGI Homes' Net-Net Working Capital too high?
LGI Homes' current Net-Net Working Capital is $2.44. The Homebuilding & Construction industry median Net-Net Working Capital is 7.25. LGI Homes' value of $2.44 is 66.3% below this industry median. Based on the distribution chart, LGI Homes ranks #999999 out of 33 companies in the Homebuilding & Construction industry, which is in the bottom quartile 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' Net-Net Working Capital compare to DFH and BXBL?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #999999 out of 33 companies for Net-Net Working Capital. This places LGI Homes in the lower half of its industry. The industry median Net-Net Working Capital is 7.25. LGI Homes' value of $2.44 is 66.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Homebuilding & Construction company?
The median Net-Net Working Capital among Homebuilding & Construction companies is 7.25, based on 33 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Net-Net Working Capital of $2.44 is 66.3% below 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on LGI Homes For the Homebuilding & Construction industry, the median Net-Net Working Capital is 7.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Net-Net Working Capital is $2.44. 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 $66.19, compared to a current price of $59.32 — trading 10.4% below its estimated fair value. The current Net-Net Working Capital is $2.44 and 66.3% below the Homebuilding & Construction industry median of 7.25. LGI Homes' overall GF Score™ is 68/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For LGI Homes (LGIH), the current Net-Net Working Capital is $2.44 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 $59.32 is trading 10.4% below its estimated GF Value™ of $66.19.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Net-Net Working Capital: $2.44
GF Value™: $66.19 vs. price of $59.32 (10.4% below fair value)
Industry Position: 66.3% below the Homebuilding & Construction median (#999999 of 33)
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
Get the complete analysis for LGIH
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LGIH has been successfully added to your 
