Is LGI Homes, Inc. (LGIH) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 162.6% / 30% | 6.0% / 30% | 3.2% / 30% | 1.1% / 5% | ✗ NOT HALAL |
| DJIM | 162.6% / 33% | 6.0% / 33% | 3.2% / 33% | 1.1% / 5% | ✗ NOT HALAL |
| MSCI | 42.5% / 33% | 1.6% / 33% | 0.8% / 33% | 1.1% / 5% | ✗ NOT HALAL |
| S&P | 162.6% / 33% | 6.0% / 33% | 3.2% / 33% | 1.1% / 5% | ✗ NOT HALAL |
| FTSE | 42.5% / 33% | 1.6% / 33% | 0.8% / 50% | 1.1% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 20.9% | |
| Operating Margin | 4.0% | |
| Net Margin | 4.3% | |
| Return on Equity (ROE) | 3.5% | |
| Return on Assets (ROA) | 1.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$140M |
| Free Cash Flow | -$141M |
| Total Debt | $1.7B |
| Debt-to-Equity | 79.3 |
| Current Ratio | 51.0 |
| Total Assets | $3.9B |
Price & Trading
| Last Close | $39.36 |
| 50-Day MA | $49.28 |
| 200-Day MA | $51.40 |
| Avg Volume | 449K |
| Beta | 1.8 |
|
52-Week Range
$33.55
| |
About LGI Homes, Inc. (LGIH)
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 interested in acquiring single-family rental properties through bulk sales agreements. It operates in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland, and Utah. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.
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Frequently Asked Questions
Is LGI Homes, Inc. (LGIH) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), LGI Homes, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is LGI Homes, Inc.'s debt ratio?
LGI Homes, Inc.'s debt ratio is 162.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 42.5%.
What are LGI Homes, Inc.'s key financial metrics?
LGI Homes, Inc. has a market capitalization of $873M, trailing P/E ratio of 12.1, and revenue of $1.7B. The company maintains a gross margin of 20.9% and a net margin of 4.3%. Return on equity stands at 3.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.