LGI HomesLGIH +9.63%67 ROE % is 0.41% as of Mar. 2026, which is 98% below its 10-year median of 24.35. 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 95 Homebuilding & Construction companies, LGI Homes ranks worse than 71.58% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. LGI Homes's annualized net income for the quarter that ended in Mar. 2026 was $9 Mil. LGI Homes's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $2,099 Mil. Therefore, LGI Homes's annualized ROE % for the quarter that ended in Mar. 2026 was 0.41%.
The historical rank and industry rank for LGI Homes's ROE % or its related term are showing as below:
LGIH'
s ROE % Range Over the Past 10 Years
Min: 3.41 Med: 24.35 Max: 33.9
Current: 3.41
During the past 13 years, LGI Homes's highest ROE % was 33.90%. The lowest was 3.41%. And the median was 24.35%.
LGIH's ROE % is ranked worse than 71.58% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 7.88
vs LGIH: 3.41
LGI Homes (NAS:LGIH) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
LGI Homes ROE % Related Terms
LGI Homes ROE % Historical Data
* Premium members only.
The historical data trend for LGI Homes's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's ROE % distribution charts can be found below:
* The bar in red indicates where LGI Homes's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
LGI Homes (LGIH) has a ROE % of 0.41% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on LGI Homes and its competitors. This is 98% below median its historical median of 24.35. Over the past decade, LGI Homes' ROE % has ranged from 3.41 to 33.90. According to the industry distribution chart, LGI Homes ranks #68 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 71.6%.
Is LGI Homes' ROE % too high?
LGI Homes' current ROE % of 0.41% is 98% below median its 10-year median of 24.35. Over the past 10 years, this metric has ranged from a low of 3.41 to a high of 33.90. The Homebuilding & Construction industry median ROE % is 7.88. LGI Homes' value of 0.41% is 94.8% below this industry median. Based on the distribution chart, LGI Homes ranks #68 out of 95 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' ROE % compare to DFH and BZH?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #68 out of 95 companies for ROE %. This places LGI Homes in the lower half of its industry. The industry median ROE % is 7.88. LGI Homes' value of 0.41% is 94.8% below this benchmark. Historically, LGI Homes' own ROE % has ranged from 3.41 to 33.90 over the past decade. While the company's 10-year median is 24.35 vs. the industry median of 7.88, 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 ROE % for a Homebuilding & Construction company?
The median ROE % among Homebuilding & Construction companies is 7.88, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI Homes's current ROE % of 0.41% is 94.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median ROE % is 7.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current ROE % is 0.41%, which is 98% below median its own 10-year median of 24.35. 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 $61.39 — trading 13.1% below its estimated fair value. The current ROE % is 0.41%, which is 98% below median its 10-year median of 24.35 and 94.8% below the Homebuilding & Construction industry median of 7.88. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For LGI Homes (LGIH), the current ROE % 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 $61.39 is trading 13.1% below its estimated GF Value™ of $70.67.
GuruFocus considers LGI Homes to be Modestly Undervalued.
Key valuation signals for LGIH:
ROE %: 0.41% (98% below median its 10-year median of 24.35)
GF Value™: $70.67 vs. price of $61.39 (13.1% below fair value)
Industry Position: 94.8% below the Homebuilding & Construction median (#68 of 95)
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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