LEGACY HOUSING CORP (LEGH)
US52472M1018 - Common Stock
We assign a fundamental rating of 5 out of 10 to LEGH. LEGH was compared to 67 industry peers in the Household Durables industry. While LEGH has a great profitability rating, there are some minor concerns on its financial health. LEGH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LEGH had positive earnings in the past year.
LEGH had a negative operating cash flow in the past year.
LEGH had positive earnings in each of the past 5 years.
In the past 5 years LEGH reported 4 times negative operating cash flow.
1.2 Ratios
LEGH's Return On Assets of 10.75% is fine compared to the rest of the industry. LEGH outperforms 76.12% of its industry peers.
Looking at the Return On Equity, with a value of 12.47%, LEGH is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.12%, LEGH is doing good in the industry, outperforming 70.15% of the companies in the same industry.
LEGH had an Average Return On Invested Capital over the past 3 years of 13.91%. This is above the industry average of 10.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.75% | ||
| ROE | 12.47% | ||
| ROIC | 11.12% |
ROA(3y)13.29%
ROA(5y)12.25%
ROE(3y)15.45%
ROE(5y)14.79%
ROIC(3y)13.91%
ROIC(5y)13.53%
1.3 Margins
The Profit Margin of LEGH (28.79%) is better than 98.51% of its industry peers.
LEGH's Profit Margin has improved in the last couple of years.
LEGH has a better Operating Margin (34.14%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of LEGH has grown nicely.
With an excellent Gross Margin value of 47.14%, LEGH belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
In the last couple of years the Gross Margin of LEGH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.14% | ||
| PM (TTM) | 28.79% | ||
| GM | 47.14% |
OM growth 3Y8.22%
OM growth 5Y11.01%
PM growth 3Y10.22%
PM growth 5Y16.74%
GM growth 3Y7.64%
GM growth 5Y7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEGH is creating some value.
Compared to 1 year ago, LEGH has about the same amount of shares outstanding.
The number of shares outstanding for LEGH has been increased compared to 5 years ago.
LEGH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.92 indicates that LEGH is not in any danger for bankruptcy at the moment.
LEGH has a Altman-Z score of 5.92. This is amongst the best in the industry. LEGH outperforms 91.04% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that LEGH is not too dependend on debt financing.
LEGH has a Debt to Equity ratio of 0.05. This is in the better half of the industry: LEGH outperforms 79.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.92 |
ROIC/WACC1.03
WACC10.83%
2.3 Liquidity
LEGH has a Current Ratio of 2.89. This indicates that LEGH is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.89, LEGH perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
LEGH has a Quick Ratio of 2.00. This indicates that LEGH is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of LEGH (2.00) is better than 77.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The earnings per share for LEGH have decreased strongly by -19.96% in the last year.
Measured over the past years, LEGH shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.08% on average per year.
LEGH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.40%.
The Revenue has been growing slightly by 3.16% on average over the past years.
EPS 1Y (TTM)-19.96%
EPS 3Y13.61%
EPS 5Y20.08%
EPS growth Q2Q-64.56%
Revenue 1Y (TTM)-26.4%
Revenue growth 3Y2.29%
Revenue growth 5Y3.16%
Revenue growth Q2Q-55.38%
3.2 Future
LEGH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.06% yearly.
The Revenue is expected to decrease by -3.17% on average over the next years.
EPS Next Y-16.05%
EPS Next 2Y-4.75%
EPS Next 3Y-3.06%
EPS Next 5YN/A
Revenue Next Year-18.22%
Revenue Next 2Y-5.45%
Revenue Next 3Y-3.17%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.35, which indicates a very decent valuation of LEGH.
LEGH's Price/Earnings ratio is a bit cheaper when compared to the industry. LEGH is cheaper than 77.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.84, LEGH is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.14, the valuation of LEGH can be described as very reasonable.
LEGH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEGH is cheaper than 64.18% of the companies in the same industry.
LEGH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEGH is valued a bit cheaper than 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
LEGH has a very decent profitability rating, which may justify a higher PE ratio.
LEGH's earnings are expected to decrease with -3.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-4.75%
EPS Next 3Y-3.06%
5. Dividend
5.1 Amount
LEGH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LEGACY HOUSING CORP
NASDAQ:LEGH (4/26/2024, 7:00:54 PM)
After market: 20.3 0 (0%)20.3
+0.22 (+1.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap495.32M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 11.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.75% | ||
| ROE | 12.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.14% | ||
| PM (TTM) | 28.79% | ||
| GM | 47.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-19.96%
EPS 3Y13.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-26.4%
Revenue growth 3Y2.29%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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