LEGACY HOUSING CORP (LEGH) Stock Fundamental Analysis
USA - NASDAQ:LEGH - US52472M1018 - Common Stock
27.36 USD
-0.15 (-0.55%)
27.39 USD
+0.03 (+0.11%)
We assign a fundamental rating of 6 out of 10 to LEGH. LEGH was compared to 63 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making LEGH a very profitable company, without any liquidiy or solvency issues. LEGH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEGH was profitable.
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
LEGH's Return On Assets of 10.02% is amongst the best of the industry. LEGH outperforms 82.54% of its industry peers.
With a Return On Equity value of 10.78%, LEGH perfoms like the industry average, outperforming 53.97% of the companies in the same industry.
LEGH has a better Return On Invested Capital (9.13%) than 63.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEGH is in line with the industry average of 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.02% | ||
| ROE | 10.78% | ||
| ROIC | 9.13% |
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
The Profit Margin of LEGH (30.00%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of LEGH has grown nicely.
Looking at the Operating Margin, with a value of 32.14%, LEGH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of LEGH has grown nicely.
LEGH has a better Gross Margin (45.44%) than 87.30% of its industry peers.
In the last couple of years the Gross Margin of LEGH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.14% | ||
| PM (TTM) | 30% | ||
| GM | 45.44% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEGH is still creating some value.
Compared to 1 year ago, LEGH has less shares outstanding
The number of shares outstanding for LEGH has been reduced compared to 5 years ago.
LEGH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 11.82 indicates that LEGH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.82, LEGH belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
LEGH has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
LEGH's Debt to FCF ratio of 0.01 is amongst the best of the industry. LEGH outperforms 88.89% of its industry peers.
LEGH has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
LEGH's Debt to Equity ratio of 0.00 is amongst the best of the industry. LEGH outperforms 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 11.82 |
ROIC/WACC1.02
WACC8.98%
2.3 Liquidity
LEGH has a Current Ratio of 3.93. This indicates that LEGH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LEGH (3.93) is better than 69.84% of its industry peers.
LEGH has a Quick Ratio of 2.65. This indicates that LEGH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.65, LEGH belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.93 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.23% over the past year.
LEGH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.21% yearly.
Looking at the last year, LEGH shows a quite strong growth in Revenue. The Revenue has grown by 8.79% in the last year.
LEGH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.74% yearly.
EPS 1Y (TTM)3.23%
EPS 3Y6.55%
EPS 5Y16.21%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y-2.3%
Revenue growth 5Y1.74%
Sales Q2Q%18.04%
3.2 Future
Based on estimates for the next years, LEGH will show a small growth in Earnings Per Share. The EPS will grow by 1.50% on average per year.
Based on estimates for the next years, LEGH will show a small growth in Revenue. The Revenue will grow by 6.44% on average per year.
EPS Next Y-8.39%
EPS Next 2Y1.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.99%
Revenue Next 2Y6.44%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.21 indicates a correct valuation of LEGH.
LEGH's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, LEGH is valued rather cheaply.
LEGH is valuated reasonably with a Price/Forward Earnings ratio of 10.71.
Based on the Price/Forward Earnings ratio, LEGH is valued a bit cheaper than 73.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, LEGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEGH is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEGH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.08 | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
LEGH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y1.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LEGH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.36
-0.15 (-0.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners40.25%
Inst Owner Change17.76%
Ins Owners53.66%
Ins Owner Change0%
Market Cap653.08M
Analysts80
Price Target30.86 (12.79%)
Short Float %7.08%
Short Ratio7.7
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)-10.58%
Min EPS beat(2)-30.09%
Max EPS beat(2)8.93%
EPS beat(4)3
Avg EPS beat(4)-1.48%
Min EPS beat(4)-30.09%
Max EPS beat(4)11.24%
EPS beat(8)6
Avg EPS beat(8)0.69%
EPS beat(12)7
Avg EPS beat(12)1.82%
EPS beat(16)11
Avg EPS beat(16)6.98%
Revenue beat(2)1
Avg Revenue beat(2)-3.55%
Min Revenue beat(2)-18.92%
Max Revenue beat(2)11.82%
Revenue beat(4)2
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-18.92%
Max Revenue beat(4)19.15%
Revenue beat(8)3
Avg Revenue beat(8)-6.33%
Revenue beat(12)4
Avg Revenue beat(12)-5.11%
Revenue beat(16)7
Avg Revenue beat(16)-2.79%
PT rev (1m)0.83%
PT rev (3m)-0.27%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-0.72%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)1.71%
Revenue NQ rev (1m)2.3%
Revenue NQ rev (3m)4.11%
Revenue NY rev (1m)3.28%
Revenue NY rev (3m)4.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 10.71 | ||
| P/S | 3.54 | ||
| P/FCF | 29.08 | ||
| P/OCF | 19.97 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)2.24
EY8.19%
EPS(NY)2.56
Fwd EY9.34%
FCF(TTM)0.94
FCFY3.44%
OCF(TTM)1.37
OCFY5.01%
SpS7.72
BVpS21.48
TBVpS21.48
PEG (NY)N/A
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.02% | ||
| ROE | 10.78% | ||
| ROCE | 11.39% | ||
| ROIC | 9.13% | ||
| ROICexc | 9.17% | ||
| ROICexgc | 9.17% | ||
| OM | 32.14% | ||
| PM (TTM) | 30% | ||
| GM | 45.44% | ||
| FCFM | 12.19% |
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 548.77% | ||
| Cap/Sales | 5.56% | ||
| Interest Coverage | 182.83 | ||
| Cash Conversion | 53.51% | ||
| Profit Quality | 40.62% | ||
| Current Ratio | 3.93 | ||
| Quick Ratio | 2.65 | ||
| Altman-Z | 11.82 |
F-Score5
WACC8.98%
ROIC/WACC1.02
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)3.23%
EPS 3Y6.55%
EPS 5Y16.21%
EPS Q2Q%-7.69%
EPS Next Y-8.39%
EPS Next 2Y1.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.79%
Revenue growth 3Y-2.3%
Revenue growth 5Y1.74%
Sales Q2Q%18.04%
Revenue Next Year4.99%
Revenue Next 2Y6.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.69%
EBIT growth 3Y2.6%
EBIT growth 5Y10.97%
EBIT Next Year4.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y348.98%
FCF growth 3Y-21.02%
FCF growth 5YN/A
OCF growth 1Y730.02%
OCF growth 3Y-15.8%
OCF growth 5YN/A