LEGACY HOUSING CORP (LEGH) Stock Fundamental Analysis
NASDAQ:LEGH - Nasdaq - US52472M1018 - Common Stock - Currency: USD
Taking everything into account, LEGH scores 6 out of 10 in our fundamental rating. LEGH was compared to 64 industry peers in the Household Durables industry. LEGH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LEGH is not valued too expensively and it also shows a decent 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.
The reported operating cash flow has been mixed in the past 5 years: LEGH reported negative operating cash flow in multiple years.
1.2 Ratios
With a decent Return On Assets value of 10.43%, LEGH is doing good in the industry, outperforming 79.69% of the companies in the same industry.
The Return On Equity of LEGH (11.27%) is comparable to the rest of the industry.
The Return On Invested Capital of LEGH (9.16%) is better than 62.50% of its industry peers.
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
The Profit Margin of LEGH (32.15%) is better than 100.00% of its industry peers.
LEGH's Profit Margin has improved in the last couple of years.
LEGH has a Operating Margin of 33.09%. This is amongst the best in the industry. LEGH outperforms 100.00% of its industry peers.
LEGH's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 45.91%, LEGH belongs to the best of the industry, outperforming 87.50% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEGH is still 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.
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 9.74 indicates that LEGH is not in any danger for bankruptcy at the moment.
LEGH's Altman-Z score of 9.74 is amongst the best of the industry. LEGH outperforms 96.88% 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 | 9.74 |
ROIC/WACC1.01
WACC9.08%
2.3 Liquidity
A Current Ratio of 3.91 indicates that LEGH has no problem at all paying its short term obligations.
LEGH has a better Current ratio (3.91) 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.
Looking at the Quick ratio, with a value of 2.67, LEGH belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.02% over the past year.
The Earnings Per Share has been growing by 16.21% on average over the past years. This is quite good.
The Revenue has decreased by -1.63% in the past year.
The Revenue has been growing slightly by 1.74% on average over the past years.
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
LEGH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.30% yearly.
LEGH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
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.
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 9.86 indicates a reasonable valuation of LEGH.
LEGH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.59, LEGH is valued rather cheaply.
A Price/Forward Earnings ratio of 8.87 indicates a reasonable valuation of LEGH.
Based on the Price/Forward Earnings ratio, LEGH is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, LEGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LEGH.
LEGH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.58 | ||
| EV/EBITDA | 8.97 |
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)0.61
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 |
22.58
+0.4 (+1.8%)
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 Cap544.63M
Analysts80
Price Target30.94 (37.02%)
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 | 9.86 | ||
| Fwd PE | 8.87 | ||
| P/S | 3.08 | ||
| P/FCF | 26.58 | ||
| P/OCF | 18.1 | ||
| P/B | 1.08 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 8.97 |
EPS(TTM)2.29
EY10.14%
EPS(NY)2.54
Fwd EY11.27%
FCF(TTM)0.85
FCFY3.76%
OCF(TTM)1.25
OCFY5.53%
SpS7.32
BVpS20.88
TBVpS20.88
PEG (NY)N/A
PEG (5Y)0.61
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 | 9.74 |
F-Score5
WACC9.08%
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