Legacy Housing (LEGH) AI Stock Analysis

• Market Cap: $467.11M
• Dividend Yield: N/A
• Average Volume (3M): 115.96K
• Price to Earnings (P/E): 10.0
• 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: 23,868,727
• 10 Day Avg. Volume: 129,908
• 30 Day Avg. Volume: 115,963
• PEG Ratio: 0.68
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 3.24
• P/FCF Ratio: 22.32
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 3.65
• Enterprise Value/Gross Profit: 8.22
• Enterprise Value/Ebitda: 10.80
• 1Y Price Target: $27.33
• Price Target Upside: 36.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.23
• Revenue Forecast (FY): $183.29M

• Rating: 64 Neutral
• Price Target: $24.00 ▲(20.18% Upside)

Legacy Housing's overall stock score is driven by its strong financial performance and undervaluation, which are tempered by technical indicators suggesting a bearish trend and mixed earnings call sentiment. The company's solid balance sheet and profitability are key strengths, but challenges in revenue growth and cash flow management need to be addressed for sustained growth.

Positive Factors

Strong Cash Position

A strong cash position and access to a credit facility enhance financial flexibility, enabling strategic investments and operational resilience.

Growth in Consumer Loan Portfolio

Growth in the consumer loan portfolio indicates strong demand for financing, contributing to stable interest income and supporting sales growth.

Positive Outlook for Texas Market

A positive market outlook in Texas suggests potential revenue growth, driven by increased housing demand linked to data center developments.

Negative Factors

Decline in Home Sales

A decline in home sales reflects potential challenges in market demand or competitive pressures, impacting revenue and growth prospects.

Increased Cost of Product Sales

Rising costs of product sales can compress margins, reducing profitability and potentially affecting pricing strategies and competitiveness.

Decrease in Net Income

A significant decrease in net income indicates profitability challenges, which could hinder reinvestment capabilities and shareholder returns.

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 generates revenue primarily through the sale of manufactured and modular homes. The company has several key revenue streams, including direct sales to consumers and sales through independent retailers. Additionally, Legacy Housing benefits from financing programs that allow customers to purchase homes through loans, which can also yield interest income. The company has established partnerships with various financial institutions to facilitate these financing options. Furthermore, it generates ancillary revenue from service and warranty contracts, as well as from selling parts and accessories related to home maintenance. These diverse revenue streams contribute to the company's overall financial performance.

Legacy Housing Financial Statement Overview

Summary

Legacy Housing demonstrates strong profitability and a solid balance sheet with minimal leverage, which is a positive indicator of financial health. However, the decline in revenue growth and negative free cash flow growth are areas of concern that need to be addressed to sustain long-term growth. Overall, the company is financially stable with room for improvement in cash flow management.

Income Statement

Legacy Housing shows strong profitability with a high net profit margin of 30% and a solid EBIT margin of 37% for TTM. However, the revenue growth rate is negative, indicating a decline in sales compared to previous periods. The company maintains a healthy gross profit margin, although it has slightly decreased from previous years.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio of 0.0025, indicating minimal leverage and financial risk. The return on equity is healthy at 11.1%, reflecting efficient use of equity capital. The equity ratio is strong, showing a stable financial position with significant equity backing the assets.

Cash Flow

The cash flow statement reveals some challenges, with a negative free cash flow growth rate of -17.8% for TTM. However, the operating cash flow to net income ratio is slightly above 1, indicating that operating cash flow adequately covers net income. The free cash flow to net income ratio is also healthy, suggesting good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	180.50M	184.19M	189.14M	257.01M	197.51M	176.72M
Gross Profit	80.28M	94.12M	89.45M	106.90M	83.46M	67.00M
EBITDA	61.06M	78.63M	71.39M	84.30M	63.10M	51.09M
Net Income	48.13M	61.64M	54.46M	67.77M	49.87M	37.99M
Balance Sheet
Total Assets	557.93M	534.19M	506.74M	437.81M	368.05M	338.62M
Cash, Cash Equivalents and Short-Term Investments	13.55M	1.15M	748.00K	11.23M	1.04M	768.00K
Total Debt	1.00M	1.40M	25.57M	5.32M	7.99M	36.17M
Total Liabilities	36.33M	40.24M	70.01M	55.71M	58.65M	79.42M
Stockholders Equity	521.60M	493.96M	436.74M	382.10M	309.39M	259.19M
Cash Flow
Free Cash Flow	18.46M	26.78M	-21.25M	-5.49M	54.34M	-4.88M
Operating Cash Flow	26.02M	35.99M	-13.54M	-1.69M	60.30M	-2.04M
Investing Cash Flow	-4.43M	-6.71M	-9.77M	9.08M	-31.94M	-2.72M
Financing Cash Flow	-8.60M	-28.88M	21.23M	-5.61M	-28.08M	3.80M

Legacy Housing Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 19.97 is below the 20-day moving average (MA) of 20.42, below the 50-day MA of 22.81, and below the 200-day MA of 24.12, indicating a bearish trend. The MACD of -0.97 indicates Negative momentum. The RSI at 37.23 is Neutral, neither overbought nor oversold. The STOCH value of 64.58 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
HOV	72 Outperform	$807.45M	6.31	20.08%	―	7.97%	-35.64%
CCS	69 Neutral	$1.89B	9.39	8.37%	1.78%	-6.28%	-31.55%
LGIH	69 Neutral	$1.21B	11.55	5.21%	―	-20.62%	-45.74%
LEGH	64 Neutral	$467.11M	9.95	9.62%	―	10.25%	-10.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BZH	54 Neutral	$676.74M	14.81	3.67%	―	1.77%	-66.27%
UHG	45 Neutral	$61.17M	―	-51.69%	―	-6.20%	24.90%

Legacy Housing Corporate Events

Legacy Housing Updates Bylaws and Leadership Structure

On October 29, 2025, Legacy Housing‘s Board of Directors adopted amendments to the company’s Bylaws in response to changes in the Texas Business Organizations Code. These amendments include an ownership threshold for shareholders to initiate derivative proceedings, designation of exclusive legal forums for internal claims, and a jury trial waiver for such claims. Additionally, Curtis D. Hodgson was appointed as the Executive Chairman of the Board, a role he previously held from January 2022 to December 2024, while Kenneth E. Shipley will remain a board member.

The most recent analyst rating on (LEGH) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Legacy Housing stock, see the LEGH Stock Forecast page.

Legacy Housing Announces Major Company Realignment

On October 10, 2025, Legacy Housing Corporation announced a significant company realignment, introducing the Legacy 250 initiative and refreshing its management structure. The initiative includes the launch of the Legacy Ultimate Series, featuring innovative home designs and energy-efficient systems, aimed at enhancing homeownership experiences. The realignment also involves a leadership transition, with interim executives appointed as the company seeks to align its operations with a focus on manufacturing excellence and innovation. This strategic move is intended to strengthen Legacy’s market position and maximize asset value, while ensuring quality and efficiency in production.

The most recent analyst rating on (LEGH) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Legacy Housing stock, see the LEGH Stock Forecast page.

Legacy Housing Appoints Interim CFO Ronald Arrington

On October 6, 2025, Jeffrey M. Fiedelman, the Chief Financial Officer of Legacy Housing, resigned for personal reasons, effective October 10, 2025. His departure was not due to any disagreements with the company’s financial operations or policies. Subsequently, on October 7, 2025, the company’s Board of Directors appointed Ronald C. Arrington as the Interim Chief Financial Officer. Arrington, who has extensive experience in financial management and has previously served as the company’s CFO, will assume the role until a successor is appointed.

The most recent analyst rating on (LEGH) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Legacy Housing stock, see the LEGH Stock Forecast page.

Legacy Housing CEO Resignation and Interim Appointment

On September 27, 2025, Robert Duncan Bates, the President and CEO of Legacy Housing, resigned effective October 10, 2025, citing personal reasons unrelated to company disagreements. Kenneth E. Shipley, the Co-founder and Executive Vice President, assumed the role of interim CEO on October 1, 2025, until a permanent replacement is found, with no additional compensation for his interim duties.

The most recent analyst rating on (LEGH) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Legacy Housing stock, see the LEGH Stock Forecast page.

Legacy Housing Corp’s Mixed Q2 2025 Earnings Call

During Legacy Housing Corp’s recent earnings call, the sentiment was mixed. While the company reported significant improvements in product sales and gross margins, challenges such as a decrease in net income, increased expenses, and slower community sales contributed to a more balanced overall outlook.