Legacy Housing Corp (LEGH)
NASDAQ:LEGH
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Legacy Housing
(NASDAQ:LEGH)
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Rating:72Outperform
Price Target:
$22.50
▲(3.31% Upside)
Action:UpgradedDate:04/01/26
The score is driven primarily by strong financial strength (very low leverage and solid profitability) and a reasonably modest P/E valuation. This is tempered by weak-to-neutral technicals and an earnings outlook that is positive on 2026 normalization and growth initiatives but still faces near-term volume, margin, and cost headwinds.
Positive Factors
Conservative balance sheet
Very low leverage and a strong equity base give Legacy durable financial flexibility. This reduces solvency risk through housing cycles, supports opportunistic capex or acquisitions, enables share repurchases, and preserves access to credit when demand or margins are pressured.
Negative Factors
Falling revenue and unit volumes
Sustained declines in units and revenue impair operating leverage in a fixed-cost manufacturing model. Lower volumes reduce absorption of factory and SG&A costs, lengthen recovery to prior profit levels, and increase sensitivity to cyclical housing demand over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a strong equity base give Legacy durable financial flexibility. This reduces solvency risk through housing cycles, supports opportunistic capex or acquisitions, enables share repurchases, and preserves access to credit when demand or margins are pressured.
Read all positive factors
Legacy Housing (LEGH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$514.11M
Dividend YieldN/A
Average Volume (3M)137.85K
Price to Earnings (P/E)14.2
Beta (1Y)0.78
Revenue Growth-10.65%
EPS Growth-31.53%
CountryUS
Employees594
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)1.74
Shares Outstanding23,812,342
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 Cap0.98
Enterprise Value/Revenue3.05
Enterprise Value/Gross Profit6.42
Enterprise Value/Ebitda9.44
Forecast
1Y Price Target
$24.50Price Target Upside12.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.01
Revenue Forecast (FY)$175.95M
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 a...
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 manufa...
Legacy Housing Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presented a balanced mix of positive balance-sheet strength, loan-portfolio growth, strong operating cash flow, credit quality and strategic opportunities (workforce/data center demand, share buybacks), against meaningful near-term operating challenges including lower revenue and unit volumes (~20% decline), compressed margins, higher SG&A driven by increased loan loss provisions and transaction costs, significant one-time/recurring comparables that reduced nonoperating income, tariff-driven cost increases, and capacity and labor headwinds. Management emphasized conservative capitalization and opportunistic repurchases while signaling that many cost pressures and reserves that weighed on 2025 are largely recognized and should moderate in 2026.Positive Updates
Strong cash position and low leverage
Ended 2025 with $8.5 million in cash (up from $1.1 million in 2024) and essentially zero draw on a $50 million revolving credit facility (only $1.2 million drawn). Management highlighted this as a strong position to fund growth.
Negative Updates
Total net revenue decline
Total net revenue declined 10.7% year-over-year to $164.6 million (from $184.2 million in 2024). Product sales fell 9.6% to $116.9 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong cash position and low leverage
Ended 2025 with $8.5 million in cash (up from $1.1 million in 2024) and essentially zero draw on a $50 million revolving credit facility (only $1.2 million drawn). Management highlighted this as a strong position to fund growth.
Read all positive updates
Company Guidance
Management guided to a constructive 2026 built around higher production and finance growth: they expect to outstrip 2025’s production of 1,549 homes (Texas alone could approach ~1,500 units), with much of the fall-show backlog shifting shipments into Q2 and over 500 workforce-housing orders already taken; consumer loan growth (portfolio was $203.6M, up 14% in 2025) should continue to drive loan interest income (full-year interest was $43.7M; Q4 ~ $11.3M) while credit quality remains strong (>97% current across portfolios); they have largely front-loaded incremental loan loss provisioning (a $4.5M reserve increase in 2025) so SG&A should normalize toward historical levels (low‑to‑mid teens percent of sales) in 2026; balance sheet flexibility (cash $8.5M, near-zero draw on a $50M revolver, operating cash flow $37.2M) supports a $10M share repurchase program; other planning assumptions noted: product gross margin was 27.5% in 2025, tariffs add roughly $1,200 per home (35% on China imports), and management expects industry wholesale pricing to move into the $60s per square foot and longer‑term company growth in the 8–12% range toward a $1B target.Legacy Housing Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
64
Positive
| 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
Positive
21.78
Price Trends
20.70
Positive
20.63
Positive
22.51
Negative
Market Momentum
0.27
Negative
59.25
Neutral
56.11
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 21.78 is above the 20-day moving average (MA) of 20.47, above the 50-day MA of 20.70, and below the 200-day MA of 22.51, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 56.11 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $514.11M | 14.19 | 8.09% | ― | -10.65% | -31.53% | |
62 Neutral | $650.62M | 8.76 | 6.81% | ― | -4.82% | -80.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.56B | 17.15 | 5.16% | 1.99% | -7.87% | -54.59% | |
50 Neutral | $1.09B | 105.92 | 3.39% | ― | -22.62% | -60.74% | |
48 Neutral | $516.88M | -148.93 | 0.81% | ― | -13.36% | -104.38% | |
46 Neutral | $71.77M | 7.16 | -23.25% | ― | -12.30% | -128.45% |
* Consumer Cyclical Sector Average
LEGH
Legacy Housing
21.59
-3.73
-14.73%
BZH
Beazer Homes
18.91
-2.59
-12.05%
HOV
Hovnanian Enterprises
109.50
7.04
6.87%
LGIH
LGI Homes
46.80
-8.83
-15.87%
CCS
Century Communities
54.27
0.71
1.32%
UHG
United Homes Group
1.22
-0.50
-29.07%
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.