LGI Homes (NASDAQ:LGIH) share price jumped 447% in the last three years, driven by investors confidence in its financial numbers and growth strategies. LGI Homes stock trades around $70 at present – with the 52-week trading range of $28.57 – $79.55. Despite significant share price rally, its valuations are trading below than the industry average, supported by growth in revenues and earnings.
LGI Homes stock trades around 1.25 times to sales and 13 times to earnings when the industry average stands around 2.13 and 21 times, respectively.
Financial Numbers
The company’s revenue increased from $0.16 billion in 2013 to $1.26 billion at the end of last year, representing average yearly growth of 75%. Its fiscal 2017 revenue of $1.26 billion surged 50% from the year-ago period, due to the increase in the number of homes closed and the boost in the average home sales price.
Its home sales price increased 6.9% year over year in 2017 and home closings enlarged 40% to 5,845 homes. LGI Homes has also been sharply turning its revenue growth into big profits. Its average annual five-year growth stands around 63%. LGI homes posted earnings per share of $5.24 in fiscal 2017, up 51.0%, from the year-ago period.
Expectations Are High for LGI Homes This Year
LGIH management expects to extend the momentum into 2018. It anticipates the number of homes closed in the range of 6,000 and 7,000 this year, higher from last year number of 5,845 homes. Homes prices are also expected to increase to 222,000 from 215,000 in fiscal 2017. Consequently, the company expects 2018 EPS between $6.00 and $7.00 per share.
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Its CEO expects the company post several records in 2018. He said, “As we turn our attention to 2018, we remain focused on delivering strong results. Ending January 2018 with home closings up 61% year-over-year, we believe we are poised to see continued growth in 2018 and believe we are well positioned to increase our revenues, community count and earnings per share, allowing LGI Homes to achieve our long-term goals and objectives of market-leading returns for our stockholders.”
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