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LGI HomesLGIH -4.19%67 Return-on-Tangible-Asset is 0.22% as of Mar. 2026, which is 98% below its 10-year median of 11.87. GuruFocus rates LGIH with a GF Score™ of 67/100 and a GF Value™ of $72.04 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 96 Homebuilding & Construction companies, LGI Homes ranks worse than 67.71% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. LGI Homes's annualizedNet Income for the quarter that ended in Mar. 2026 was $9 Mil. LGI Homes's average total tangible assets for the quarter that ended in Mar. 2026 was $3,957 Mil. Therefore, LGI Homes's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 0.22%.
The historical rank and industry rank for LGI Homes's Return-on-Tangible-Asset or its related term are showing as below:
LGIH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.78 Med: 11.87 Max: 20.69
Current: 1.78
During the past 13 years, LGI Homes's highest Return-on-Tangible-Asset was 20.69%. The lowest was 1.78%. And the median was 11.87%.
LGIH's Return-on-Tangible-Asset is ranked worse than 67.71% of 96
companies
in the Homebuilding & Construction industry
Industry Median: 3.32
vs LGIH: 1.78
LGI Homes (NAS:LGIH) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
LGI Homes Return-on-Tangible-Asset Related Terms
LGI Homes Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for LGI Homes's Return-on-Tangible-Asset 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, HOV, BZH: Return-on-Tangible-Asset Comparison
For the Residential Construction subindustry, LGI Homes's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where LGI Homes's Return-on-Tangible-Asset 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 the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 0.22% mean?
LGI Homes (LGIH) has a Return-on-Tangible-Asset of 0.22% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on LGI Homes and its competitors. This is 98% below median its historical median of 11.87. Over the past decade, LGI Homes' Return-on-Tangible-Asset has ranged from 1.78 to 20.69. According to the industry distribution chart, LGI Homes ranks #65 out of 96 companies in the Homebuilding & Construction industry, placing it in the top 67.7%.
Is LGI Homes' Return-on-Tangible-Asset too high?
LGI Homes' current Return-on-Tangible-Asset of 0.22% is 98% below median its 10-year median of 11.87. Over the past 10 years, this metric has ranged from a low of 1.78 to a high of 20.69. The Homebuilding & Construction industry median Return-on-Tangible-Asset is 3.32. LGI Homes' value of 0.22% is 93.4% below this industry median. Based on the distribution chart, LGI Homes ranks #65 out of 96 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, LGI Homes has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGI Homes' Return-on-Tangible-Asset compare to DFH and HOV?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #65 out of 96 companies for Return-on-Tangible-Asset. This places LGI Homes in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.32. LGI Homes' value of 0.22% is 93.4% below this benchmark. Historically, LGI Homes' own Return-on-Tangible-Asset has ranged from 1.78 to 20.69 over the past decade. While the company's 10-year median is 11.87 vs. the industry median of 3.32, LGI Homes has consistently been below 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 Return-on-Tangible-Asset for a Homebuilding & Construction company?
The median Return-on-Tangible-Asset among Homebuilding & Construction companies is 3.32, based on 96 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Return-on-Tangible-Asset of 0.22% is 93.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Asset is 3.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Return-on-Tangible-Asset is 0.22%, which is 98% below median its own 10-year median of 11.87. 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 $72.04, compared to a current price of $58.52 — trading 18.8% below its estimated fair value. The current Return-on-Tangible-Asset is 0.22%, which is 98% below median its 10-year median of 11.87 and 93.4% below the Homebuilding & Construction industry median of 3.32. LGI Homes' overall GF Score™ is 67/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For LGI Homes (LGIH), the current Return-on-Tangible-Asset is 0.22% as of Mar. 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 $58.52 is trading 18.8% below its estimated GF Value™ of $72.04.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Return-on-Tangible-Asset: 0.22% (98% below median its 10-year median of 11.87)
GF Value™: $72.04 vs. price of $58.52 (18.8% below fair value)
Industry Position: 93.4% below the Homebuilding & Construction median (#65 of 96)
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.
67GF Score
Get the complete analysis for LGIH
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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