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
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.
LEGH has a Return On Equity of 11.27%. This is comparable to the rest of the industry: LEGH outperforms 53.13% of its industry peers.
LEGH has a better Return On Invested Capital (9.16%) than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
LEGH has a better Profit Margin (32.15%) than 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.
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.
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 9.60. This indicates that LEGH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.60, LEGH belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
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/WACC1.02
WACC9%
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 68.75% 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
LEGH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.02%, which is quite good.
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.
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
Based on estimates for the next years, LEGH will show a small growth in Earnings Per Share. The EPS will grow by 1.30% on average per year.
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 9.77 indicates a reasonable valuation of LEGH.
LEGH's Price/Earnings is on the same level as the industry average.
LEGH is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.79, the valuation of LEGH can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEGH indicates a somewhat cheap valuation: LEGH is cheaper than 62.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LEGH to the average of the S&P500 Index (22.39), we can say LEGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LEGH.
The rest of the industry has a similar Price/Free Cash Flow ratio as LEGH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.33 | ||
| 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
LEGH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.37
+0.18 (+0.81%)
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 Cap539.56M
Analysts80
Price Target30.94 (38.31%)
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 | 9.77 | ||
| Fwd PE | 8.79 | ||
| P/S | 3.05 | ||
| P/FCF | 26.33 | ||
| P/OCF | 17.93 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 8.81 |
EPS(TTM)2.29
EY10.24%
EPS(NY)2.54
Fwd EY11.38%
FCF(TTM)0.85
FCFY3.8%
OCF(TTM)1.25
OCFY5.58%
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%
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)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