LGI Homes, Inc. LGIH

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
24/100
Weak

About LGI Homes, Inc.

LGI Homes, Inc. engages in the design, construction, and sale of new homes in the United States. It markets and sells attached and detached entry-level homes and active adult offerings under the LGI Homes brand; and luxury homes under the Terrata Homes brand. The company also engages in the wholesale business, which includes building and selling homes to large institutions … Full LGIH analysis →

Competitive advantage assessment

Key strengths

  • Strong Liquidity Buffer Liquidity position is strong (score 1.00), providing operational cushion.

Key risks

  • ROIC Below WACC or Peers ROIC at 19.0th percentile suggests inefficient capital deployment.
  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.24), suggesting weak customer stickiness.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
25

Where LGIH ranks in Residential Construction

LGI Homes, Inc. ranks #20 of 22 scored companies in Residential Construction by moat score — the top 91%. The widest moat in the group is PulteGroup, Inc. (PHM) at 80/100.

Moat scores for companies ranked near LGIH in Residential Construction
# Company Moat score Rating
14 Lennar Corporation LEN 46/100 Developing
15 Tri Pointe Homes, Inc. TPH 45/100 Developing
16 Lennar Corporation LEN-B 44/100 Developing
17 Dream Finders Homes, Inc. DFH 37/100 Developing
18 Beazer Homes USA, Inc. BZH 37/100 Developing
19 Hovnanian Enterprises, Inc. HOV 35/100 Developing
20 LGI Homes, Inc. LGIH 24/100 Weak
21 United Homes Group, Inc UHG 17/100 Weak
22 SPRINGVIEW HOLDINGS LTD SPHL 9/100 Weak

See every General Corporate company ranked by moat score →

How LGIH scores on the Corporate Default defenses

Pricing Power

Score 25 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 24 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 16 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 15 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 39 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 25 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding LGIH's moat

What is LGI Homes, Inc.'s moat score?

LGI Homes, Inc. (LGIH) scores 24 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as weak. It ranks #20 of 22 scored companies in Residential Construction, the top 91%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 21 companies in Residential Construction. Its strongest defense is Resilience (39/100) and its weakest is Capital Efficiency (15/100).

How does LGI Homes, Inc. compare with other Residential Construction companies?

LGI Homes, Inc. ranks #20 of 22 scored companies in Residential Construction by moat score. The widest moat in Residential Construction is PulteGroup, Inc. (PHM) at 80/100. The companies ranked closest are Hovnanian Enterprises, Inc. (HOV) at 35 just above it and United Homes Group, Inc (UHG) at 17 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 21 companies in Residential Construction. The defenses are then weighted to produce the overall score out of 100.

Why is LGI Homes, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for LGI Homes, Inc.?

The Corporate Default template measures 6 defenses, and LGIH scores: Pricing Power (25), Cost Advantage (24), Customer Stickiness (16), Capital Efficiency (15), Resilience (39), Scale & Market Position (25). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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