Legacy Housing (LEGH) AI Stock Analysis

• Market Cap: $464.34M
• Dividend Yield: N/A
• Average Volume (3M): 137.85K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.72
• Revenue Growth: 10.25%
• EPS Growth: -10.52%
• Country: US
• Employees: 594
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.35
• Shares Outstanding: 23,812,342
• 10 Day Avg. Volume: 134,589
• 30 Day Avg. Volume: 137,848
• PEG Ratio: -0.35
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 2.84
• P/FCF Ratio: 16.63
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 5.89
• Enterprise Value/Ebitda: 8.67
• 1Y Price Target: $24.50
• Price Target Upside: 25.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.01
• Revenue Forecast (FY): $175.95M

• Rating: 67 Neutral
• Price Target: $22.00 ▲(12.82% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong financial positioning (notably very low leverage and solid underlying profitability) offset by a clear cyclical slowdown and uneven cash-flow history. Technical signals are bearish with the stock below major moving averages and negative MACD. The latest call was mixed/neutral due to margin pressure and earnings declines despite some operational bright spots, while valuation cannot be cleanly assessed from the provided P/E and missing dividend yield.

Positive Factors

Very low leverage / strong balance sheet

A very low debt load and growing equity provide durable financial flexibility: the company can fund working capital, weather cyclical downturns, and pursue opportunistic investments or acquisitions without stressing solvency. This structural strength supports multi‑period resilience.

Expanding consumer loan portfolio

A growing consumer finance book diversifies revenue through interest income, supports sales by easing customer financing constraints, and creates a recurring earnings stream. Over months this strengthens cash generation and provides a structural sales enabler versus peers without captive finance.

Higher net revenue per unit / pricing power

Sustained higher revenue per unit indicates pricing power or favorable product mix (upgrades/multi‑section). This structural improvement can lift long‑run margins and offset unit volatility if maintained, reflecting ability to capture more value per sale across cycles.

Negative Factors

Declining revenue and unit sales

Consecutive revenue declines and softer home shipments signal persistent demand headwinds in manufactured housing. Reduced volumes impair operating leverage, raise fixed‑cost absorption per unit, and limit scalable profit recovery absent a sustained market rebound.

Margin pressure from rising input costs

Material raw‑material and tariff driven cost increases have compressed product gross margins materially. If costs remain elevated, core profitability will be structurally weaker unless offset by sustained price increases, productivity gains, or permanent cost reductions.

Volatile operating cash flow / earnings conversion

Inconsistent operating cash conversion and past negative cash‑flow years create uncertainty for reinvestment and financing plans. Even with recent FCF improvement, ongoing volatility raises execution risk for sustaining capex, inventory build, and financing customer loans over downturns.

Legacy Housing Business Overview & Revenue Model

Company Description

Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny houses primarily in the southern United States. The company manufactures and provides for the transport of mobile homes; and offers wholesale financing to dealers and mobile home parks, as well as a range of homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms. It also provides floor plan financing for independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities; and retail financing to consumers. The company markets its homes under the Legacy brand through a network of 176 independent and 13 company-owned retail locations, as well as direct sales to owners of manufactured home communities in 15 states in the United States. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.

How the Company Makes Money

Legacy Housing makes money primarily by manufacturing homes and selling them at a margin over its production costs. Its key revenue stream is home sales to wholesale customers such as independent manufactured-home retailers, developers, and manufactured-housing communities (including operators that place homes into communities for sale or rent). In addition to selling homes, the company also generates revenue from providing consumer and commercial financing (where available) connected to its home sales—earning interest income and/or financing-related fees on loans originated or held in its financing portfolio. Factors that typically influence its earnings include unit volumes shipped, the average selling price/product mix (e.g., single-section vs. multi-section, feature upgrades), input costs (materials, labor, freight), and availability/cost of financing for end customers. Specific partnership details and customer concentration information: null.

Legacy Housing Financial Statement Overview

Summary

Strong balance sheet with extremely low leverage and solid profitability supports a higher score, but recent fundamentals have softened (revenue declines and meaningfully lower earnings) and cash-flow consistency remains mixed despite improved recent free cash flow.

Income Statement

Profitability remains strong with healthy gross and net margins, but momentum has softened: revenue declined in 2024 and fell further in 2025. Earnings also stepped down meaningfully from the 2024 peak, indicating a tougher demand/pricing environment. Offsetting this, the company still produces solid absolute profits and has a history of strong growth earlier in the period (notably 2021–2022), suggesting the business model can scale in better cycles.

Balance Sheet

The balance sheet is a clear strength. Debt is extremely low relative to equity across recent years, giving the company substantial financial flexibility and low solvency risk. Equity has grown strongly over time, and returns on shareholder capital are solid even after moderating in 2025 versus prior years, pointing to a well-capitalized business that can withstand industry cyclicality.

Cash Flow

Cash generation is mixed. Free cash flow improved materially in 2024–2025 and is solidly positive, but operating cash flow has been volatile with negative years (2020, 2022, 2023). In 2025, operating cash flow covered less than the year’s net income, indicating earnings-to-cash conversion weakened despite positive free cash flow. Overall, recent improvement is encouraging, but variability remains a key watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	164.57M	184.19M	189.14M	257.01M	197.51M
Gross Profit	79.74M	94.12M	89.45M	106.90M	83.46M
EBITDA	50.43M	78.63M	71.39M	84.30M	63.10M
Net Income	41.81M	61.64M	54.46M	67.77M	49.87M
Balance Sheet
Total Assets	580.34M	534.19M	506.74M	437.81M	368.05M
Cash, Cash Equivalents and Short-Term Investments	8.48M	1.15M	748.00K	11.23M	1.04M
Total Debt	2.54M	1.40M	25.57M	5.32M	7.99M
Total Liabilities	51.72M	40.24M	70.01M	55.71M	58.65M
Stockholders Equity	528.61M	493.96M	436.74M	382.10M	309.39M
Cash Flow
Free Cash Flow	28.15M	26.78M	-21.25M	-5.49M	54.34M
Operating Cash Flow	37.15M	35.99M	-13.54M	-1.69M	60.30M
Investing Cash Flow	-22.08M	-6.71M	-9.77M	9.08M	-31.94M
Financing Cash Flow	-7.75M	-28.88M	21.23M	-5.61M	-28.08M

Legacy Housing Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEGH, the sentiment is Negative. The current price of 19.5 is below the 20-day moving average (MA) of 20.72, below the 50-day MA of 21.11, and below the 200-day MA of 22.71, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 54.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEGH.

Legacy Housing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEGH	67 Neutral	$464.34M	11.20	9.62%	―	10.25%	-10.52%
HOV	63 Neutral	$640.08M	8.76	6.81%	―	-0.84%	-76.30%
CCS	63 Neutral	$1.64B	12.06	8.37%	1.99%	-6.28%	-31.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LGIH	48 Neutral	$884.84M	13.73	3.51%	―	-20.62%	-45.74%
BZH	46 Neutral	$591.32M	-4.50	0.81%	―	1.77%	-66.27%
UHG	43 Neutral	$68.83M	7.16	-23.25%	―	-6.20%	24.90%

Legacy Housing Corporate Events

Legacy Housing Shareholders Elect Directors, Ratify Auditor

Legacy Housing held its Annual Meeting of Stockholders on December 18, 2025, with 20,747,424 of 23,868,727 eligible common shares represented in person or by proxy. Shareholders elected five directors—Curtis D. Hodgson, Kenneth E. Shipley, Brian J. Ferguson, Skyler M. Howton and Jeffrey K. Stouder—to one-year terms, and ratified Frazier & Deeter, LLC as the company’s independent registered public accounting firm for the 2025 fiscal year, reinforcing continuity in both board governance and external audit oversight.

The most recent analyst rating on (LEGH) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Legacy Housing stock, see the LEGH Stock Forecast page.

Legacy Housing Names Veteran Executive Jon Langbert as CFO

On December 18, 2025, the company’s board appointed veteran finance executive and entrepreneur Jon Langbert, 60, as chief financial officer, succeeding interim CFO Ronald Arrington, who stepped down the same day. Langbert brings experience ranging from founding and leading businesses in internet retail, gaming equipment operations, hotel development and financial services, to early-career roles in finance and accounting at Electronic Data Systems, and holds finance and MBA degrees from the University of Texas at Austin and Harvard Business School; his appointment, with a formal employment agreement expected to follow, signals a move to bolster the company’s financial leadership with a seasoned operator who has no disclosed related-party or family ties to existing executives or directors.

The most recent analyst rating on (LEGH) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Legacy Housing stock, see the LEGH Stock Forecast page.