LEGACY HOUSING CORP (LEGH) Stock Fundamental Analysis
NASDAQ:LEGH - Nasdaq - US52472M1018 - Common Stock - Currency: USD
LEGH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. LEGH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LEGH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LEGH had positive earnings in the past year.
In the past year LEGH had a positive cash flow from operations.
LEGH had positive earnings in each of the past 5 years.
In multiple years LEGH reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.43%, LEGH is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
With a Return On Equity value of 11.27%, LEGH perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.16%, LEGH is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LEGH is above the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 11.27% | ||
| ROIC | 9.16% |
ROA(3y)12.6%
ROA(5y)12.53%
ROE(3y)14.23%
ROE(5y)14.7%
ROIC(3y)12.34%
ROIC(5y)12.83%
1.3 Margins
LEGH's Profit Margin of 32.15% is amongst the best of the industry. LEGH outperforms 100.00% of its industry peers.
LEGH's Profit Margin has improved in the last couple of years.
LEGH's Operating Margin of 33.09% is amongst the best of the industry. LEGH outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of LEGH has grown nicely.
LEGH has a better Gross Margin (45.91%) than 87.50% of its industry peers.
In the last couple of years the Gross Margin of LEGH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.09% | ||
| PM (TTM) | 32.15% | ||
| GM | 45.91% |
OM growth 3Y5.01%
OM growth 5Y9.08%
PM growth 3Y9.82%
PM growth 5Y14.45%
GM growth 3Y3.32%
GM growth 5Y4.22%
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.
LEGH has less shares outstanding than it did 1 year ago.
LEGH has less shares outstanding than it did 5 years ago.
There is no outstanding debt for LEGH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
LEGH has an Altman-Z score of 9.51. This indicates that LEGH is financially healthy and has little risk of bankruptcy at the moment.
LEGH has a better Altman-Z score (9.51) than 95.31% of its industry peers.
LEGH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.51 |
ROIC/WACC1.01
WACC9.1%
2.3 Liquidity
LEGH has a Current Ratio of 3.91. This indicates that LEGH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LEGH (3.91) is better than 68.75% of its industry peers.
A Quick Ratio of 2.67 indicates that LEGH has no problem at all paying its short term obligations.
The Quick ratio of LEGH (2.67) is better than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
LEGH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.02%, which is quite good.
LEGH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.21% yearly.
The Revenue has decreased by -1.63% in the past year.
Measured over the past years, LEGH shows a small growth in Revenue. The Revenue has been growing by 1.74% on average per year.
EPS 1Y (TTM)8.02%
EPS 3Y6.55%
EPS 5Y16.21%
EPS Q2Q%-31.67%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y-2.3%
Revenue growth 5Y1.74%
Sales Q2Q%-17.51%
3.2 Future
The Earnings Per Share is expected to grow by 1.30% on average over the next years.
Based on estimates for the next years, LEGH will show a small growth in Revenue. The Revenue will grow by 4.25% on average per year.
EPS Next Y-9.93%
EPS Next 2Y1.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.42%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.69, the valuation of LEGH can be described as very reasonable.
LEGH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.53, LEGH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.72, the valuation of LEGH can be described as reasonable.
62.50% of the companies in the same industry are more expensive than LEGH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LEGH to the average of the S&P500 Index (22.27), we can say LEGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
LEGH's Enterprise Value to EBITDA ratio is in line with the industry average.
LEGH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.11 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
The decent profitability rating of LEGH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y1.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LEGH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.18
+0.26 (+1.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners38.13%
Inst Owner Change4.22%
Ins Owners53.67%
Ins Owner Change-0.83%
Market Cap534.98M
Analysts80
Price Target30.94 (39.5%)
Short Float %6.76%
Short Ratio7.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.43%
Min EPS beat(2)-30.09%
Max EPS beat(2)11.24%
EPS beat(4)3
Avg EPS beat(4)-1.36%
Min EPS beat(4)-30.09%
Max EPS beat(4)11.24%
EPS beat(8)5
Avg EPS beat(8)-1.13%
EPS beat(12)7
Avg EPS beat(12)2.64%
EPS beat(16)11
Avg EPS beat(16)7.44%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-18.92%
Max Revenue beat(2)19.15%
Revenue beat(4)1
Avg Revenue beat(4)-4.88%
Min Revenue beat(4)-18.92%
Max Revenue beat(4)19.15%
Revenue beat(8)2
Avg Revenue beat(8)-8.62%
Revenue beat(12)4
Avg Revenue beat(12)-5.74%
Revenue beat(16)6
Avg Revenue beat(16)-3.55%
PT rev (1m)-9.45%
PT rev (3m)-5.21%
EPS NQ rev (1m)-11.29%
EPS NQ rev (3m)-6.78%
EPS NY rev (1m)-11.52%
EPS NY rev (3m)-11.34%
Revenue NQ rev (1m)-5.18%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-6.24%
Revenue NY rev (3m)-6.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.72 | ||
| P/S | 3.03 | ||
| P/FCF | 26.11 | ||
| P/OCF | 17.78 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)2.29
EY10.32%
EPS(NY)2.54
Fwd EY11.47%
FCF(TTM)0.85
FCFY3.83%
OCF(TTM)1.25
OCFY5.63%
SpS7.32
BVpS20.88
TBVpS20.88
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 11.27% | ||
| ROCE | 11.43% | ||
| ROIC | 9.16% | ||
| ROICexc | 9.22% | ||
| ROICexgc | 9.22% | ||
| OM | 33.09% | ||
| PM (TTM) | 32.15% | ||
| GM | 45.91% | ||
| FCFM | 11.6% |
ROA(3y)12.6%
ROA(5y)12.53%
ROE(3y)14.23%
ROE(5y)14.7%
ROIC(3y)12.34%
ROIC(5y)12.83%
ROICexc(3y)12.39%
ROICexc(5y)12.88%
ROICexgc(3y)12.39%
ROICexgc(5y)12.88%
ROCE(3y)15.39%
ROCE(5y)16.01%
ROICexcg growth 3Y-11.25%
ROICexcg growth 5Y-5%
ROICexc growth 3Y-11.25%
ROICexc growth 5Y-5%
OM growth 3Y5.01%
OM growth 5Y9.08%
PM growth 3Y9.82%
PM growth 5Y14.45%
GM growth 3Y3.32%
GM growth 5Y4.22%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 503.78% | ||
| Cap/Sales | 5.44% | ||
| Interest Coverage | 98.57 | ||
| Cash Conversion | 49.86% | ||
| Profit Quality | 36.09% | ||
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z | 9.51 |
F-Score5
WACC9.1%
ROIC/WACC1.01
Cap/Depr(3y)375.35%
Cap/Depr(5y)347.16%
Cap/Sales(3y)3.52%
Cap/Sales(5y)3.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.02%
EPS 3Y6.55%
EPS 5Y16.21%
EPS Q2Q%-31.67%
EPS Next Y-9.93%
EPS Next 2Y1.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y-2.3%
Revenue growth 5Y1.74%
Sales Q2Q%-17.51%
Revenue Next Year0.42%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.19%
EBIT growth 3Y2.6%
EBIT growth 5Y10.97%
EBIT Next Year2.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y391.92%
FCF growth 3Y-21.02%
FCF growth 5YN/A
OCF growth 1Y1006.48%
OCF growth 3Y-15.8%
OCF growth 5YN/A