LEGACY HOUSING CORP (LEGH) Stock Fundamental Analysis
NASDAQ:LEGH - Nasdaq - US52472M1018 - Common Stock - Currency: USD
Overall LEGH gets a fundamental rating of 6 out of 10. We evaluated LEGH against 63 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
In the past year LEGH was profitable.
LEGH had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 10.43%, LEGH belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.27%, LEGH is in line with its industry, outperforming 53.97% 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 63.49% 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 10.29%.
| 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.
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.
In the last couple of years the Operating Margin of LEGH has grown nicely.
Looking at the Gross Margin, with a value of 45.91%, LEGH belongs to the top of the industry, outperforming 87.30% 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.
Compared to 1 year ago, LEGH has less shares outstanding
Compared to 5 years ago, LEGH has less shares outstanding
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 9.80. This indicates that LEGH is financially healthy and has little risk of bankruptcy at the moment.
LEGH's Altman-Z score of 9.80 is amongst the best of the industry. LEGH outperforms 96.83% 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 | 9.8 |
ROIC/WACC1
WACC9.13%
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 Current ratio of 3.91. This is in the better half of the industry: LEGH outperforms 68.25% of its industry peers.
A Quick Ratio of 2.67 indicates that LEGH has no problem at all paying its short term obligations.
LEGH has a Quick ratio of 2.67. This is amongst the best in the industry. LEGH outperforms 93.65% 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.
The Earnings Per Share has been growing by 16.21% on average over the past years. This is quite good.
LEGH shows a decrease in Revenue. In the last year, the revenue decreased by -1.63%.
LEGH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.74% yearly.
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 1.91% on average over the next years.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y-7.67%
EPS Next 2Y1.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.66%
Revenue Next 2Y4.63%
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
LEGH is valuated reasonably with a Price/Earnings ratio of 9.93.
60.32% of the companies in the same industry are more expensive than LEGH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.04. LEGH is valued rather cheaply when compared to this.
LEGH is valuated reasonably with a Price/Forward Earnings ratio of 8.83.
Based on the Price/Forward Earnings ratio, LEGH is valued a bit cheaper than 74.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LEGH to the average of the S&P500 Index (37.64), we can say LEGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 8.83 |
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 | 26.78 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
The excellent profitability rating of LEGH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y1.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LEGH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.75
+0.24 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners40.29%
Inst Owner Change-0.07%
Ins Owners53.66%
Ins Owner Change0%
Market Cap548.73M
Analysts80
Price Target30.6 (34.51%)
Short Float %7.41%
Short Ratio7.19
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)-1.1%
PT rev (3m)-10.45%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)-12.9%
EPS NY rev (1m)0.67%
EPS NY rev (3m)-9.29%
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)-5.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 8.83 | ||
| P/S | 3.11 | ||
| P/FCF | 26.78 | ||
| P/OCF | 18.23 | ||
| P/B | 1.09 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)2.29
EY10.07%
EPS(NY)2.58
Fwd EY11.32%
FCF(TTM)0.85
FCFY3.73%
OCF(TTM)1.25
OCFY5.48%
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 | 9.8 |
F-Score5
WACC9.13%
ROIC/WACC1
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-7.67%
EPS Next 2Y1.91%
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 Year1.66%
Revenue Next 2Y4.63%
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