LGI Homes Inc. (LGIH) exhibits 20.7% gross margins and 3.0% return on invested capital within Consumer Discretionary (Homebuilding), balanced against a 12.6x enterprise multiple and 4.8% implied options volatility.
Sustained 20.7% gross profitability converts into 4.7% operating margin and 3.0% ROIC, outpacing sector cost of capital.
ROIC: 3.0% // GM: 20.7%YoY revenue trajectory of -22.6% paired with -13.86% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -22.6% // FCF YLD: -13.86%Altman Z-Score of 1.60 and Piotroski F-Score of 1/9 indicate low near-term refinancing stress.
ALTMAN Z: 1.60 // F-SCORE: 1/9Trading at 14.0x trailing P/E (13.0x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 14.0x // EV/EBITDA: 12.6xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $43.74 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Homebuilding require continuous execution to defend 4.3% net margins.
NET MARGIN: 4.3% // D/E: 0.45x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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