LGI HomesLGIH +9.71%67 ROA % is 0.22% as of Mar. 2026, which is 98% below its 10-year median of 11.80. GuruFocus rates LGIH with a GF Score™ of 67/100 and a GF Value™ of $70.67 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 96 Homebuilding & Construction companies, LGI Homes ranks worse than 67.71% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LGI Homes's annualizedNet Income for the quarter that ended in Mar. 2026 was $9 Mil.
LGI Homes's average Total Assets over the quarter that ended in Mar. 2026 was $3,969 Mil. Therefore, LGI Homes's annualized ROA % for the quarter that ended in Mar. 2026 was 0.22%.
The historical rank and industry rank for LGI Homes's ROA % or its related term are showing as below:
LGIH'
s ROA % Range Over the Past 10 Years
Min: 1.78 Med: 11.8 Max: 20.57
Current: 1.78
During the past 13 years, LGI Homes's highest ROA % was 20.57%. The lowest was 1.78%. And the median was 11.80%.
LGIH's ROA % is ranked worse than 67.71% of 96
companies
in the Homebuilding & Construction industry
Industry Median: 3.1
vs LGIH: 1.78
LGI Homes (NAS:LGIH) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
LGI Homes ROA % Related Terms
LGI Homes ROA % Historical Data
* Premium members only.
The historical data trend for LGI Homes's ROA % 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.
For the Residential Construction subindustry, LGI Homes's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's ROA % distribution charts can be found below:
* The bar in red indicates where LGI Homes's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
LGI Homes (LGIH) has a ROA % of 0.22% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on LGI Homes and its competitors. This is 98% below median its historical median of 11.80. Over the past decade, LGI Homes' ROA % has ranged from 1.78 to 20.57. 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' ROA % too high?
LGI Homes' current ROA % of 0.22% is 98% below median its 10-year median of 11.80. Over the past 10 years, this metric has ranged from a low of 1.78 to a high of 20.57. The Homebuilding & Construction industry median ROA % is 3.10. LGI Homes' value of 0.22% is 92.9% 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' ROA % compare to DFH and BZH?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #65 out of 96 companies for ROA %. This places LGI Homes in the lower half of its industry. The industry median ROA % is 3.10. LGI Homes' value of 0.22% is 92.9% below this benchmark. Historically, LGI Homes' own ROA % has ranged from 1.78 to 20.57 over the past decade. While the company's 10-year median is 11.80 vs. the industry median of 3.10, 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 ROA % for a Homebuilding & Construction company?
The median ROA % among Homebuilding & Construction companies is 3.10, based on 96 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current ROA % of 0.22% is 92.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median ROA % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current ROA % is 0.22%, which is 98% below median its own 10-year median of 11.80. 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 $70.67, compared to a current price of $61.45 — trading 13% below its estimated fair value. The current ROA % is 0.22%, which is 98% below median its 10-year median of 11.80 and 92.9% below the Homebuilding & Construction industry median of 3.10. LGI Homes' overall GF Score™ is 67/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For LGI Homes (LGIH), the current ROA % 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 $61.45 is trading 13% below its estimated GF Value™ of $70.67.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
ROA %: 0.22% (98% below median its 10-year median of 11.80)
GF Value™: $70.67 vs. price of $61.45 (13% below fair value)
Industry Position: 92.9% 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
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