LGI HomesLGIH -3.70%68 Return-on-Tangible-Equity is 0.41% as of Mar. 2026, which is 98% below its 10-year median of 25.07. GuruFocus rates LGIH with a GF Score™ of 68/100 and a GF Value™ of $70.93 (Modestly Undervalued). The stock has 12 warning signs investors should review. Among 93 Homebuilding & Construction companies, LGI Homes ranks worse than 73.12% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. LGI Homes's annualized net income for the quarter that ended in Mar. 2026 was $9 Mil. LGI Homes's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,087 Mil. Therefore, LGI Homes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 0.41%.
The historical rank and industry rank for LGI Homes's Return-on-Tangible-Equity or its related term are showing as below:
LGIH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.43 Med: 25.07 Max: 34.22
Current: 3.43
During the past 13 years, LGI Homes's highest Return-on-Tangible-Equity was 34.22%. The lowest was 3.43%. And the median was 25.07%.
LGIH's Return-on-Tangible-Equity is ranked worse than 73.12% of 93
companies
in the Homebuilding & Construction industry
Industry Median: 8.37
vs LGIH: 3.43
LGI Homes (NAS:LGIH) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
LGI Homes Return-on-Tangible-Equity Related Terms
LGI Homes Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LGI Homes's Return-on-Tangible-Equity 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-Equity Comparison
For the Residential Construction subindustry, LGI Homes's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LGI Homes's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.41% mean?
LGI Homes (LGIH) has a Return-on-Tangible-Equity of 0.41% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LGI Homes and its competitors. This is 98% below median its historical median of 25.07. Over the past decade, LGI Homes' Return-on-Tangible-Equity has ranged from 3.43 to 34.22. According to the industry distribution chart, LGI Homes ranks #68 out of 93 companies in the Homebuilding & Construction industry, placing it in the top 73.1%.
Is LGI Homes' Return-on-Tangible-Equity too high?
LGI Homes' current Return-on-Tangible-Equity of 0.41% is 98% below median its 10-year median of 25.07. Over the past 10 years, this metric has ranged from a low of 3.43 to a high of 34.22. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.37. LGI Homes' value of 0.41% is 95.1% below this industry median. Based on the distribution chart, LGI Homes ranks #68 out of 93 companies in the Homebuilding & Construction industry, which is below 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' Return-on-Tangible-Equity compare to DFH and HOV?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #68 out of 93 companies for Return-on-Tangible-Equity. This places LGI Homes in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.37. LGI Homes' value of 0.41% is 95.1% below this benchmark. Historically, LGI Homes' own Return-on-Tangible-Equity has ranged from 3.43 to 34.22 over the past decade. While the company's 10-year median is 25.07 vs. the industry median of 8.37, 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-Equity for a Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.37, based on 93 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current Return-on-Tangible-Equity of 0.41% is 95.1% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current Return-on-Tangible-Equity is 0.41%, which is 98% below median its own 10-year median of 25.07. 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 $70.93, compared to a current price of $59.74 — trading 15.8% below its estimated fair value. The current Return-on-Tangible-Equity is 0.41%, which is 98% below median its 10-year median of 25.07 and 95.1% below the Homebuilding & Construction industry median of 8.37. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For LGI Homes (LGIH), the current Return-on-Tangible-Equity is 0.41% 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 $59.74 is trading 15.8% below its estimated GF Value™ of $70.93.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
Return-on-Tangible-Equity: 0.41% (98% below median its 10-year median of 25.07)
GF Value™: $70.93 vs. price of $59.74 (15.8% below fair value)
Industry Position: 95.1% below the Homebuilding & Construction median (#68 of 93)
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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