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Legacy Housing
(NASDAQ:LEGH)
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Rating:80Outperform
Price Target:
$32.00
▲(20.80% Upside)
Action:Reiterated
Date:08/06/26
LEGH scores well primarily on financial strength—especially the ultra-low leverage balance sheet and healthy profitability—supported by constructive technical momentum. The score is moderated by historical cash flow volatility, earnings-call risks (tax-rate normalization, dealer destocking, tariffs, litigation and credit-note modification), and a modest leadership-transition overhang; valuation appears reasonable with no dividend support.
Positive Factors
Conservative Balance Sheet
Near-zero leverage (total debt ~$1.1M vs. equity ~$562M) provides durable financial flexibility. That capital buffer supports opportunistic share repurchases, withstands demand shocks, preserves access to the revolver, and reduces refinancing risk — important for multi-quarter stability.
Negative Factors
Cash Flow Volatility
Working-capital swings and episodic negative cash conversion have recurred, meaning cash generation can flip across quarters. That unpredictability complicates capital allocation, raises the need for liquidity reserves, and can pressure investment or shareholder-return plans over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Near-zero leverage (total debt ~$1.1M vs. equity ~$562M) provides durable financial flexibility. That capital buffer supports opportunistic share repurchases, withstands demand shocks, preserves access to the revolver, and reduces refinancing risk — important for multi-quarter stability.
Read all positive factors
Legacy Housing (LEGH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$624.50M
Dividend YieldN/A
Average Volume (3M)137.85K
Price to Earnings (P/E)14.8
Beta (1Y)0.80
Revenue Growth-7.56%
EPS Growth-24.44%
CountryUS
Employees592
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)2.15
Shares Outstanding23,781,600
10 Day Avg. Volume134,589
30 Day Avg. Volume137,848
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.89
Price to Sales (P/S)2.84
P/FCF Ratio16.63
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$24.00Price Target Upside-9.40% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.21
Revenue Forecast (FY)$203.43M
Legacy Housing Business Overview & Revenue Model
Company Description
Founded in Bedford, Texas, in 2005, Legacy Housing Corporation specializes in the construction, sale, and financing of manufactured homes and compact living units, primarily serving the southern United States. The company not only manufactures and...
How the Company Makes Money
Legacy Housing makes money primarily through (1) selling factory-built homes and (2) earning interest income from financing.
1) Home sales (manufacturing revenue): The company manufactures homes in its production facilities and sells them as fin...
Legacy Housing Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial picture: record net income, double-digit revenue growth, higher unit volumes and ASP, improving cash generation, an attractive workforce housing pipeline, solid loan portfolio performance, and favorable federal housing legislation. Key near-term risks include a large decline in inventory finance sales as dealers destock, rising input tariff pressure, litigation related to the AmeriCasa acquisition, a significant matured park note that required modification, SG&A inflation and labor constraints that could limit production scaling. On balance, the favorable momentum and strong balance sheet outweigh the manageable headwinds.Positive Updates
Record Net Income and Strong EPS
Net income was a company record $23.5 million, up nearly 60% from $14.7 million a year ago; diluted earnings per share rose to $0.99 from $0.60 (Q2 2025).
Negative Updates
Sharp Decline in Inventory Finance Sales
Inventory finance sales declined by roughly $10.1 million, a drop of about 74% year-over-year as dealers continue to work through existing lot inventory.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Net Income and Strong EPS
Net income was a company record $23.5 million, up nearly 60% from $14.7 million a year ago; diluted earnings per share rose to $0.99 from $0.60 (Q2 2025).
Read all positive updates
Company Guidance
Management guided that deliveries under the 380‑unit workforce housing order (113 units shipped in Q2) will continue throughout the remainder of 2026 and could be supplemented by additional workforce/data‑center orders, while noting labor capacity as the principal near‑term constraint and that new recruiting and retention programs are being implemented; they expect the company’s effective tax rate to move closer to the 21% statutory rate in H2 after Q2’s 11.2% (benefited by Section 45L), and signaled financial flexibility with $29.0M cash, a fully available $50M revolver, $562.2M stockholders’ equity (book value $23.64/share), $24.4M operating cash flow in H1, inventories of $43.9M, roughly $202.2M consumer loans / $209M park notes / $23.2M dealer receivables with loan interest income of $11.5M (up 5.4%), a Q2 provision benefit of ≈$0.6M, a $2.0M post‑quarter paydown and a modified plan on a $48.6M note with no expected loss, and the board views opportunistic share repurchases as appropriate when the stock trades near book value.Legacy Housing Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
95
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.45M | 164.57M | 184.19M | 189.14M | 257.01M | 197.51M |
| Gross Profit | 88.72M | 78.02M | 94.12M | 89.45M | 106.90M | 83.46M |
| EBITDA | 62.21M | 53.45M | 78.63M | 71.39M | 84.30M | 63.10M |
| Net Income | 51.25M | 41.81M | 61.64M | 54.46M | 67.77M | 49.87M |
Balance Sheet | ||||||
| Total Assets | 615.66M | 580.34M | 534.19M | 506.74M | 437.81M | 368.05M |
| Cash, Cash Equivalents and Short-Term Investments | 28.96M | 8.48M | 1.15M | 748.00K | 11.23M | 1.04M |
| Total Debt | 1.11M | 2.54M | 1.40M | 25.57M | 5.32M | 7.99M |
| Total Liabilities | 53.41M | 51.72M | 40.24M | 70.01M | 55.71M | 58.65M |
| Stockholders Equity | 562.24M | 528.61M | 493.96M | 436.74M | 382.10M | 309.39M |
Cash Flow | ||||||
| Free Cash Flow | 44.00M | 28.15M | 26.78M | -21.25M | -5.49M | 54.34M |
| Operating Cash Flow | 57.53M | 37.15M | 35.99M | -13.54M | -1.69M | 60.30M |
| Investing Cash Flow | -21.85M | -22.08M | -6.71M | -9.77M | 9.08M | -31.94M |
| Financing Cash Flow | -3.71M | -7.75M | -28.88M | 21.23M | -5.61M | -28.08M |
Legacy Housing Technical Analysis
Positive
26.49
Price Trends
25.72
Positive
23.50
Positive
22.23
Positive
Market Momentum
0.69
Negative
74.41
Negative
73.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEGH, the sentiment is Positive. The current price of 26.49 is below the 20-day moving average (MA) of 26.76, above the 50-day MA of 25.72, and above the 200-day MA of 22.23, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 74.41 is Negative, neither overbought nor oversold. The STOCH value of 73.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEGH.
Legacy Housing Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $624.50M | 14.84 | 9.53% | ― | -7.56% | -24.44% | |
75 Outperform | $1.91B | 14.66 | 5.21% | 1.76% | -8.37% | -45.09% | |
62 Neutral | $1.27B | 17.87 | 3.15% | ― | -22.62% | -60.74% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $704.81M | 31.93 | 4.39% | ― | -4.73% | -87.32% | |
56 Neutral | $877.42M | -224.01 | 2.51% | ― | -13.36% | -104.38% |
* Consumer Cyclical Sector Average
LEGH
Legacy Housing
29.20
4.12
16.43%
BZH
Beazer Homes
33.18
10.08
43.64%
HOV
Hovnanian Enterprises
137.78
3.41
2.54%
LGIH
LGI Homes
60.04
3.11
5.46%
CCS
Century Communities
71.31
12.46
21.17%
Legacy Housing Corporate Events
Business Operations and StrategyExecutive/Board Changes
Legacy Housing Executive Chairman Announces Retirement Transition
Negative
Jul 22, 2026
On July 17, 2026, Legacy Housing Corporation disclosed that Executive Chairman Curtis D. Hodgson, a longtime leader and co-founder figure in the business, notified the board of his decision to retire and resign from the board effective July 21, 20...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.