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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year LEGH had a positive cash flow from operations.
Each year in the past 5 years LEGH has been profitable.
In multiple years LEGH reported negative operating cash flow during the last 5 years.
1.2 Ratios
LEGH has a Return On Assets of 10.43%. This is in the better half of the industry: LEGH outperforms 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 Return On Invested Capital of 9.16%. This is in the better half of the industry: LEGH outperforms 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
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.
In the last couple of years the Profit Margin of LEGH has grown nicely.
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's Gross Margin of 45.91% is amongst the best of 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
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.
The number of shares outstanding for LEGH has been reduced compared to 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
An Altman-Z score of 9.60 indicates that LEGH is not in any danger for bankruptcy at the moment.
LEGH has a better Altman-Z score (9.60) than 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 | 9.6 |
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.
With a decent Current ratio value of 3.91, LEGH is doing good in the industry, outperforming 68.75% of the companies in the same industry.
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.
LEGH's Quick ratio of 2.67 is amongst the best of the industry. LEGH outperforms 93.75% of its industry peers.
| 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.
LEGH shows a decrease in Revenue. In the last year, the revenue decreased by -1.63%.
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.
The Revenue is expected to grow by 4.25% on average over the next years.
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.
LEGH's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LEGH to the average of the S&P500 Index (26.53), we can say LEGH is valued rather cheaply.
The Price/Forward Earnings ratio is 8.72, which indicates a very decent valuation of LEGH.
Based on the Price/Forward Earnings ratio, LEGH is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
LEGH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
LEGH's Enterprise Value to EBITDA is on the same level as the industry average.
LEGH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.11 | ||
| 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 |
22.18
+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 | 8.81 |
EPS(TTM)2.29
EY10.32%
EPS(NY)2.54
Fwd EY11.47%
FCF(TTM)0.85
FCFY3.83%
OCF(TTM)1.25
OCFY5.63%
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 | 9.6 |
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