Does LGI HOMES, INC. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores LGI HOMES, INC. (LGIH) 40.0 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 40, returns on capital 52, balance-sheet safety 40, capital discipline 21.

Is LGIH stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $96.15 per share versus a recent price of $58.48 — 39% below value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has LGIH's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 40.0 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

LGI HOMES, INC.

LGIH · Industrials · $1.4B mkt cap · FY2025 filings · Shallow moat ·

On the watchlist

Shallow moat

The four filters

Pricing power40

Median gross margin 25.4% over 10y, stable.

Returns on capital52

Median ROIC 11.4%, above the 9% hurdle in 70% of years.

Balance-sheet safety40

Net debt/EBITDA 19.0x, no material interest expense disclosed.

Capital discipline21

Owner earnings +0.1%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

39% below value

Owner earnings (normalized): $200.2M
Est. intrinsic value / share: $96.15
Recent price: $58.48
Discount to value: 39% below value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

16 years of fundamentals

The business, in plain English

LGI HOMES, INC. booked $1.7B of revenue in FY2025 in the Industrials sector and kept 20.7% of it as gross profit — a moderate-margin business by that measure. After every other cost, 4.3% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $50.5M (FY2011) to $1.7B (FY2025) — about 28.6% a year compounded over 14 years.

It earned 1.6% on invested capital in FY2025, with a median of 11.2% across 15 filed years. The Returns on Capital filter above scores it 52/100.

The balance sheet carried $1.7B of total debt in FY2025 against $76.0M of owner earnings — roughly 21.8 years of owner earnings to retire it all. Balance-Sheet Safety scores it 40/100.

The share count rose 11.4% between FY2013 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 21/100.

Put together: Returns on Capital is the strongest of the four filters (52/100) and Capital Discipline the weakest (21/100), which is how LGIH lands at 40/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$1.7B FY2025

Gross marginRevenue kept after cost of goods20.7% FY2025

Return on invested capitalOperating profit on the capital employed1.6% FY2025

Owner earningsCash an owner could take out$76.0M FY2025

Gaps in a line mean that item isn’t in LGIH’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale40.0 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — LGIH has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Industrials context

#154 of 309 scored Industrials companies, ranked by Moat Score.

Nearest peers by Moat Score

#152WFRD Weatherford International plc40.4 out of 100, Shallow moatShallow moat
#153GTEC GREENLAND TECHNOLOGIES HOLDING CORPORATION40.2 out of 100, Shallow moatShallow moat
#155NTIC NORTHERN TECHNOLOGIES INTERNATIONAL CORP39.5 out of 100, No moatNo moat
#156MGPI MGP INGREDIENTS, INC.38.9 out of 100, No moatNo moat

Compare LGIH with its nearest peers →All Industrials companies on the Index →

Common questions about LGIH

Does LGI HOMES, INC. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores LGI HOMES, INC. (LGIH) 40.0 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 40, returns on capital 52, balance-sheet safety 40, capital discipline 21.
Is LGIH stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $96.15 per share versus a recent price of $58.48 — 39% below value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has LGIH's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 40.0 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell LGIH. See the disclaimer.