What is LGI Homes, Inc.'s Shariah compliance score?

LGI Homes, Inc.'s (LGIH) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does LGI Homes, Inc. pass AAOIFI screening?

LGI Homes, Inc. (LGIH) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (LGIH: 121.9%), (3) interest-bearing deposits below 30% (LGIH: 3.6%), and (4) prohibited income below 5% (LGIH: 0.0%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for LGI Homes, Inc. stock?

LGI Homes, Inc. (LGIH) has a non-permissible income ratio of 0.00%. Muslim investors should purify this percentage of any dividends received and capital gains realized from LGIH shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen LGI Homes, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for LGI Homes, Inc. (LGIH) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about LGIH's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

LGIH: Is LGI Homes, Inc. Halal?

LGI Homes, Inc.

NASDAQConsumer CyclicalUS

$49.82

+1.71%

Market Cap: 1.2B

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is LGI Homes, Inc. (LGIH) halal? Not Halal. Based on AAOIFI screening, LGI Homes, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

121.9% of 30.0% limit

What this means for you

Most scholars advise not holding LGIH

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About LGI Homes, Inc.

LGI Homes, Inc. designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to companies looking to acquire single-family rental properties. As of December 31, 2021, it owned 101 communities. The company serves customers in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, and Pennsylvania. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

Sector: Consumer Cyclical · Industry: Residential Construction

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

MARA+

Marriott International, Inc.

$366.24

-0.85%

FWDIA+

Forward Industries, Inc.

$3.96

+11.86%

ROLA+

Rollins, Inc.

$44.77

-0.40%

TSCOA+

Tractor Supply Company

$30.24

+1.65%

GNTXA+

Gentex Corporation

$24.35

-2.25%

More Consumer Cyclical Stocks

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The Home Depot, Inc.

MCD

McDonald's Corporation

B+

BKNG

Booking Holdings Inc.

LOW

Lowe's Companies, Inc.

Free · No credit card required

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Frequently Asked Questions

Is LGI Homes, Inc. (LGIH) halal to invest in?

LGI Homes, Inc. (LGIH) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did LGI Homes, Inc. get a F compliance rating?

LGI Homes, Inc. (LGIH) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 121.9% (limit 30%); interest-bearing deposits of 3.6% (limit 30%); prohibited income of 0.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change LGI Homes, Inc.'s Shariah verdict?

LGI Homes, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is LGI Homes, Inc. re-screened for Shariah compliance?

LGI Homes, Inc. (LGIH) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.