Legacy Housing Corporation Fundamental Analysis (NASDAQ: LEGH)
Legacy Housing Corporation Fundamental Analysis (NASDAQ: LEGH)
Legacy Housing Corporation (NASDAQ: LEGH) shows moderate financial fundamentals with a PE ratio of 13.35, profit margin of 28.56%, and ROE of 9.53%. The company generates $0.2B in annual revenue with weak year-over-year growth of -10.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LEGH's fundamental strength across five key dimensions:
Efficiency Score
WeakLEGH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLEGH trades at attractive valuation levels.
Growth Score
WeakLEGH faces weak or negative growth trends.
Financial Health Score
ExcellentLEGH maintains a strong and stable balance sheet.
Profitability Score
ModerateLEGH maintains healthy but balanced margins.
Key Financial Metrics
Is LEGH Expensive or Cheap?
P/E Ratio
LEGH trades at 13.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LEGH's PEG of -2.18 indicates potential undervaluation.
Price to Book
The market values Legacy Housing Corporation at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.42 times EBITDA. This signals the market has high growth expectations.
How Well Does LEGH Make Money?
Net Profit Margin
For every $100 in sales, Legacy Housing Corporation keeps $28.56 as profit after all expenses.
Operating Margin
Core operations generate 32.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.53 in profit for every $100 of shareholder equity.
ROA
Legacy Housing Corporation generates $8.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Legacy Housing Corporation generates strong operating cash flow of $50.58M, reflecting robust business health.
Free Cash Flow
Legacy Housing Corporation generates strong free cash flow of $38.58M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.62 in free cash annually.
FCF Yield
LEGH converts 5.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How LEGH Stacks Against Its Sector Peers
| Metric | LEGH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.35 | 26.29 | Better (Cheaper) |
| ROE | 9.53% | 966.00% | Weak |
| Net Margin | 28.56% | -4927.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 3.56 | 2.32 | Strong Liquidity |
| ROA | 8.32% | 295.00% | Weak |
LEGH outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Legacy Housing Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.92%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
11.17%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
1942.63%
Industry Style: Cyclical, Growth, Discretionary
High Growth