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Legacy Housing Corp (LEGH)
NASDAQ:LEGH
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Legacy Housing
(NASDAQ:LEGH)
Rating:69Neutral
Price Target:
$25.00
▲(13.79%Upside)
Legacy Housing (LEGH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$545.55M
Dividend YieldN/A
Average Volume (3M)91.02K
Price to Earnings (P/E)9.8
Beta (1Y)0.80
Revenue Growth-1.62%
EPS Growth7.51%
CountryUS
Employees594
SectorConsumer Cyclical
Sector Strength65
IndustryResidential Construction
Share Statistics
EPS (TTM)0.43
Shares Outstanding24,117,895
10 Day Avg. Volume61,295
30 Day Avg. Volume91,015
Financial Highlights & Ratios
PEG Ratio-1.31
Price to Book (P/B)1.10
Price to Sales (P/S)0.00
P/FCF Ratio27.06
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit6.56
Enterprise Value/Ebitda1.96
Forecast
1Y Price Target
$28.67Price Target Upside30.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Legacy Housing Business Overview & Revenue Model
Company DescriptionLegacy 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 MoneyLegacy Housing Corporation generates revenue through the sale of manufactured homes and tiny houses. The company employs a vertically integrated business model, which allows for cost efficiencies and competitive pricing. Its primary revenue streams include direct sales to customers, wholesale sales to a network of independent retailers, and sales through company-owned stores. Additionally, Legacy Housing offers financing solutions to its customers, providing another avenue for revenue generation. The company also benefits from strategic partnerships with developers and government entities, which facilitate bulk sales and long-term contracts, contributing significantly to its overall earnings.
Legacy Housing Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -14.61%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance for Legacy Housing Corporation. While there were notable achievements such as increased net revenue per product sold, growth in loan portfolios, and strong retail loan originations, the company faced challenges with a significant decrease in product sales, net income, and gross profit margin. Increased SG&A expenses and decreased other revenue further contributed to a challenging quarter. Despite these setbacks, the company remains optimistic about future growth, particularly in retail finance and loan originations.Q1-2025 Updates
Positive Updates
Increase in Net Revenue Per Product Sold
Net revenue per product sold increased by 23.1% compared to the same period in 2024, largely due to a shift from wholesale to higher retail prices.
Increase in Consumer and MHP Loan Portfolios
The consumer loan portfolio increased by $20.3 million and the MHP loan portfolio increased by $20.1 million compared to the previous year.
Strong Retail Loan Originations
Retail loan originations in April 2025 were the highest since going public, with year-to-date originations up 51% over last year.
Increase in Cash Reserves
Cash reserves increased to $3.4 million as of March 31, 2025, up from $1.1 million as of December 31, 2024.
Growth in Book Value Per Share
Book value per basic share outstanding increased by 13.1% from the same period in 2024.
Negative Updates
Decrease in Product Sales
Product sales decreased by $6.5 million or 21.2% compared to the same period in 2024, driven by a decrease in unit volume shipped.
Significant Decrease in Net Income
Net income decreased by 32.1% to $10.3 million in the first quarter of 2025 compared to the first quarter of 2024.
Decline in Gross Profit Margin
Gross profit margin decreased to 29.2% from 33.6% during the same period in 2024.
Increase in SG&A Expenses
Selling, general and administrative expenses increased by $0.4 million or 6.9% during the three months ended March 31, 2025, compared to the same period in 2024.
Decrease in Other Revenue
Other revenue decreased by $1.0 million or 59.2%, mainly due to a $1.1 million decrease in forfeited deposits.
Company Guidance
During the Legacy Housing Corporation Q1 2025 earnings call, several key financial metrics and strategic updates were discussed. The company reported a 21.2% decrease in product sales, amounting to a $6.5 million drop compared to the same period in 2024, primarily due to reduced unit volume in mobile home park and retail sales. Despite this, net revenue per product increased by 23.1% due to a higher mix of consumer sales. The consumer loan portfolio grew by $20.3 million, while the dealer finance notes decreased by $2.4 million. Legacy's gross profit margin fell to 29.2% from 33.6% year-over-year, and net income decreased by 32.1% to $10.3 million. Basic earnings per share also saw a decline of 30.6% to $0.43. However, the company reported an increase in cash reserves to $3.4 million as of March 31, 2025, and a 13.1% increase in book value per basic share outstanding to $20.87. Looking forward, the company plans to simplify its product line to improve efficiency and has made strategic hires to bolster its sales and marketing efforts. Despite market uncertainties, the outlook for the rest of 2025 remains positive, with retail loan originations in April reaching record levels since going public and May tracking equally strong.Legacy Housing Financial Statement Overview
Summary
Legacy Housing displays strong profitability with healthy EBIT and EBITDA margins and a robust balance sheet marked by low leverage. However, inconsistent revenue growth and fluctuating operating cash flow present challenges.Income Statement
Legacy Housing has demonstrated solid profitability with consistent gross and net profit margins. However, revenue growth has been inconsistent, with recent periods showing declines. EBIT and EBITDA margins remain healthy, indicating efficient operations.70
Positive
Balance Sheet
The company maintains a strong equity base with a low debt-to-equity ratio, highlighting financial stability. The equity ratio is high, suggesting a strong capital structure. Return on equity is respectable, indicating effective use of equity.80
Positive
Cash Flow
Operating cash flow has fluctuated, impacting free cash flow growth. The operating cash flow to net income ratio is positive, indicating good cash conversion from earnings. However, free cash flow volatility presents a potential risk.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 184.19M | 189.14M | 257.01M | 197.51M | 176.72M |
| Gross Profit | 94.12M | 89.45M | 106.90M | 83.46M | 67.00M |
| EBITDA | 78.63M | 71.39M | 84.30M | 63.10M | 51.09M |
| Net Income | 61.64M | 54.46M | 67.77M | 49.87M | 37.99M |
Balance Sheet | |||||
| Total Assets | 534.19M | 506.74M | 436.81M | 366.67M | 338.62M |
| Cash, Cash Equivalents and Short-Term Investments | 1.15M | 748.00K | 11.23M | 1.04M | 768.00K |
| Total Debt | 1.40M | 25.57M | 5.32M | 7.99M | 36.17M |
| Total Liabilities | 40.24M | 70.01M | 54.71M | 57.27M | 79.42M |
| Stockholders Equity | 493.96M | 436.74M | 382.10M | 309.39M | 259.19M |
Cash Flow | |||||
| Free Cash Flow | 26.78M | -21.25M | -5.49M | 54.34M | -4.88M |
| Operating Cash Flow | 35.99M | -13.54M | -1.69M | 60.30M | -2.04M |
| Investing Cash Flow | -6.71M | -9.77M | 9.08M | -31.94M | -2.72M |
| Financing Cash Flow | -28.88M | 21.23M | -5.61M | -28.08M | 3.60M |
Legacy Housing Technical Analysis
Negative
21.97
Price Trends
22.89
Negative
23.86
Negative
24.79
Negative
Market Momentum
-0.03
Positive
38.65
Neutral
10.87
Positive
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 21.97 is below the 20-day moving average (MA) of 22.94, below the 50-day MA of 22.89, and below the 200-day MA of 24.79, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 10.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEGH.
Legacy Housing Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $210.38M | 6.52 | 97.48% | ― | 5.24% | -89.62% | |
76 Outperform | $615.13M | 3.87 | 28.55% | ― | 7.93% | -3.59% | |
73 Outperform | $1.81B | 6.20 | 12.36% | 1.95% | 10.75% | 8.31% | |
71 Outperform | $704.25M | 7.55 | 7.97% | ― | 13.50% | -40.36% | |
69 Neutral | $545.55M | 9.76 | 11.90% | ― | -1.62% | 7.51% | |
65 Neutral | €20.42B | 8.71 | 7.83% | 3.56% | 0.45% | -40.36% | |
62 Neutral | $1.21B | 6.74 | 9.36% | ― | -4.37% | -3.17% |
* Consumer Cyclical Sector Average
Performance Comparison
LEGH
Legacy Housing
21.97
-4.23
-16.15%
BZH
Beazer Homes
23.28
-8.40
-26.52%
HOV
Hovnanian Enterprises
107.14
-73.51
-40.69%
LGIH
LGI Homes
50.79
-52.98
-51.06%
CCS
Century Communities
59.07
-35.21
-37.35%
UHG
United Homes Group
3.75
-2.67
-41.59%
Legacy Housing Corporate Events
Executive/Board Changes
Legacy Housing Appoints Skyler Howton to Board
Neutral
Nov 18, 2024
Skyler M. Howton has been appointed to the Company’s Board of Directors, filling a vacancy left by Francisco J. Coll. With a robust legal background and leadership roles in Dallas, she will serve on key committees and stand for election at the 2024 Annual Shareholders’ Meeting. Howton’s appointment aligns with SEC and NASDAQ independence standards, and she will receive compensation similar to other non-employee directors.
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.