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LGI HomesLGIH -4.19%67 5-Year Yield-on-Cost % is 0.00 as of Jul. 19, 2026. 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 53 Homebuilding & Construction companies, LGI Homes ranks worse than 1886790.57% on this metric.
LGI Homes's yield on cost for the quarter that ended in Mar. 2026 was 0.00.
The historical rank and industry rank for LGI Homes's 5-Year Yield-on-Cost % or its related term are showing as below:
LGIH's 5-Year Yield-on-Cost % is not ranked *
in the Homebuilding & Construction industry.
Industry Median: 4.28 * Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
LGI Homes (NAS:LGIH) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
LGI Homes 5-Year Yield-on-Cost % Related Terms
LGIH vs DFH, HOV, BZH: 5-Year Yield-on-Cost % Comparison
For the Residential Construction subindustry, LGI Homes's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where LGI Homes's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of LGI Homes is calculated as
LGI Homes (LGIH) has a 5-Year Yield-on-Cost % of 0.00 as of Jul. 19, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on LGI Homes and its competitors. According to the industry distribution chart, LGI Homes ranks #999999 out of 53 companies in the Homebuilding & Construction industry.
Is LGI Homes' 5-Year Yield-on-Cost % too high?
LGI Homes' current 5-Year Yield-on-Cost % is 0.00. Based on the distribution chart, LGI Homes ranks #999999 out of 53 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. 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' 5-Year Yield-on-Cost % compare to DFH and HOV?
According to the Homebuilding & Construction industry distribution chart, LGI Homes ranks #999999 out of 53 companies for 5-Year Yield-on-Cost %. This places LGI Homes in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.28. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Homebuilding & Construction company?
The median 5-Year Yield-on-Cost % among Homebuilding & Construction companies is 4.28, based on 53 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on LGI Homes and its competitors. For the Homebuilding & Construction industry, the median 5-Year Yield-on-Cost % is 4.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI Homes's current 5-Year Yield-on-Cost % is 0.00. 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 5-Year Yield-on-Cost % is 0.00. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For LGI Homes (LGIH), the current 5-Year Yield-on-Cost % is 0.00 as of Jul. 19, 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:
5-Year Yield-on-Cost %: 0.00
GF Value™: $72.04 vs. price of $58.52 (18.8% below fair value)
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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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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