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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LEGH had positive earnings in the past year.
LEGH had a positive operating cash flow in the past year.
In the past 5 years LEGH has always been profitable.
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
The Return On Assets of LEGH (10.43%) is better than 79.69% of its industry peers.
LEGH has a Return On Equity (11.27%) which is in line with its industry peers.
LEGH has a better Return On Invested Capital (9.16%) than 62.50% of its industry peers.
LEGH had an Average Return On Invested Capital over the past 3 years of 12.34%. This 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
Looking at the Profit Margin, with a value of 32.15%, LEGH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
LEGH has a Gross Margin of 45.91%. This is amongst the best in the industry. LEGH outperforms 87.50% of its industry peers.
LEGH's Gross Margin has improved in the last couple of years.
| 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
LEGH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LEGH has been reduced compared to 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 9.60 indicates that LEGH is not in any danger for bankruptcy at the moment.
The Altman-Z score of LEGH (9.60) is better than 95.31% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.6 |
ROIC/WACC1.01
WACC9.06%
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.
LEGH has a Current ratio of 3.91. This is in the better half of the industry: LEGH outperforms 68.75% of its industry peers.
LEGH has a Quick Ratio of 2.67. This indicates that LEGH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.67, LEGH belongs to the best 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.
Measured over the past years, LEGH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.21% on average per year.
Looking at the last year, LEGH shows a decrease in Revenue. The Revenue has decreased by -1.63% in the last 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.
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
Based on the Price/Earnings ratio of 9.69, the valuation of LEGH can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LEGH is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LEGH to the average of the S&P500 Index (26.55), we can say LEGH is valued rather cheaply.
LEGH is valuated reasonably with a Price/Forward Earnings ratio of 8.72.
62.50% of the companies in the same industry are more expensive than LEGH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as LEGH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.12 | ||
| EV/EBITDA | 8.81 |
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
No dividends for LEGH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.19
-0.39 (-1.73%)
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 Cap535.22M
Analysts80
Price Target30.94 (39.43%)
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 | 26.12 | ||
| P/OCF | 17.78 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 8.81 |
EPS(TTM)2.29
EY10.32%
EPS(NY)2.54
Fwd EY11.47%
FCF(TTM)0.85
FCFY3.83%
OCF(TTM)1.25
OCFY5.62%
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 | 9.6 |
F-Score5
WACC9.06%
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