Legacy Housing (LEGH) AI Stock Analysis

• Market Cap: $669.76M
• Dividend Yield: N/A
• Average Volume (3M): 68.56K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.77
• Revenue Growth: 8.79%
• EPS Growth: 2.30%
• Country: US
• Employees: 594
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Residential Construction
• EPS (TTM): 0.61
• Shares Outstanding: 23,868,727
• 10 Day Avg. Volume: 90,080
• 30 Day Avg. Volume: 68,563
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 7.90
• 1Y Price Target: $28.67
• Price Target Upside: 2.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $30.00 ▲(6.91% Upside)

Legacy Housing's overall stock score is driven by its strong financial performance and attractive valuation. The technical analysis indicates potential overbought conditions, which could lead to short-term volatility. The earnings call provided a balanced view with both positive growth indicators and challenges. The absence of corporate events does not impact the score.

Legacy Housing Business Overview & Revenue Model

Company Description

Legacy Housing Corporation (LEGH) is a leading manufacturer and seller of manufactured and modular homes, primarily serving the affordable housing sector. The company operates facilities in Texas and distributes its homes through a network of independent retailers and company-owned sales centers across the United States. Legacy Housing focuses on providing quality homes that are built to meet the needs of diverse customers, including individuals seeking affordable housing solutions.

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 financial health with robust profitability and low leverage. While revenue growth is moderate, the company maintains efficient operations and a solid balance sheet. Cash flow management shows improvement, but there is room for enhancing cash flow efficiency.

Income Statement

Legacy Housing shows a solid performance with a strong net profit margin of 30% in TTM, indicating efficient cost management. However, the gross profit margin has slightly declined from previous years, and revenue growth is modest at 4.34% in TTM. The EBIT and EBITDA margins remain robust, reflecting operational efficiency.

Balance Sheet

The company maintains an excellent debt-to-equity ratio of 0.0025 in TTM, showcasing low leverage and financial stability. The return on equity is healthy at 11.11%, though slightly lower than previous years. The equity ratio is strong, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth of 9.59% in TTM, but the operating cash flow to net income ratio is just above 1, suggesting limited cash flow efficiency. The free cash flow to net income ratio is healthy, indicating good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.28M	184.19M	189.14M	257.01M	197.51M	176.72M
Gross Profit	86.88M	94.12M	89.45M	106.90M	83.46M	67.00M
EBITDA	70.39M	78.63M	71.39M	84.30M	63.10M	51.09M
Net Income	55.28M	61.64M	54.46M	67.77M	49.87M	37.99M
Balance Sheet
Total Assets	551.99M	534.19M	506.74M	436.81M	366.67M	338.62M
Cash, Cash Equivalents and Short-Term Investments	2.63M	1.15M	748.00K	11.23M	1.04M	768.00K
Total Debt	1.30M	1.40M	25.57M	5.32M	7.99M	36.17M
Total Liabilities	39.20M	40.24M	70.01M	54.71M	57.27M	79.42M
Stockholders Equity	512.78M	493.96M	436.74M	382.10M	309.39M	259.19M
Cash Flow
Free Cash Flow	22.46M	26.78M	-21.25M	-5.49M	54.34M	-4.88M
Operating Cash Flow	32.70M	35.99M	-13.54M	-1.69M	60.30M	-2.04M
Investing Cash Flow	-11.99M	-6.71M	-9.77M	9.08M	-31.94M	-2.72M
Financing Cash Flow	-18.13M	-28.88M	21.23M	-5.61M	-28.08M	3.60M

Legacy Housing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 28.06 is above the 20-day moving average (MA) of 27.18, above the 50-day MA of 24.66, and above the 200-day MA of 24.63, indicating a bullish trend. The MACD of 1.04 indicates Positive momentum. The RSI at 71.10 is Negative, neither overbought nor oversold. The STOCH value of 47.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOV	73 Outperform	$853.89M	7.52	20.08%	―	7.97%	-35.64%
CCS	73 Outperform	$2.07B	8.50	10.34%	1.62%	3.76%	-17.55%
LEGH	72 Outperform	$669.76M	12.45	11.33%	―	8.79%	2.30%
LGIH	68 Neutral	$1.55B	10.11	7.84%	―	-7.89%	-19.53%
BZH	65 Neutral	$780.60M	11.91	5.65%	―	9.97%	-52.57%
Sector *	61 Neutral	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
UHG	57 Neutral	$248.74M	68.67	9.58%	―	7.51%	-97.77%

Legacy Housing Corporate Events

Legacy Housing Appoints Skyler Howton to Board

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.