Legacy Housing (LEGH) AI Stock Analysis

• Market Cap: $471.17M
• Dividend Yield: N/A
• Average Volume (3M): 137.85K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.68
• 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: 134,589
• 30 Day Avg. Volume: 137,848
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $26.00
• Price Target Upside: 31.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.23
• Revenue Forecast (FY): $183.29M

• Rating: 72 Outperform
• Price Target: $23.00 ▲(16.51% Upside)

Legacy Housing's overall stock score reflects a balance of strong financial stability and attractive valuation, offset by technical weaknesses and mixed earnings call sentiment. The positive corporate events provide a potential catalyst for future growth.

Positive Factors

Strong Cash Position

A strong cash position provides financial flexibility and the ability to invest in growth opportunities, ensuring long-term stability.

Leadership Strengthening

The appointment of a seasoned CFO enhances financial leadership, potentially improving strategic decision-making and operational efficiency.

Market Position Enhancement

Innovative product offerings can strengthen market position and attract a broader customer base, supporting long-term growth.

Negative Factors

Decline in Home Sales

A decline in home sales indicates potential challenges in market demand, which could impact revenue and growth prospects.

Increased Costs

Rising costs can pressure margins, reducing profitability and potentially limiting the company's ability to invest in growth.

Decreased Net Income

A significant drop in net income affects financial health and may hinder the company's ability to fund future initiatives.

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 homes, which are sold directly to consumers, retailers, and developers. The company has a robust revenue model that includes the sale of both standard and customized homes, allowing them to cater to a wide range of customer preferences and budgets. Additionally, Legacy Housing earns income through its financial services segment by offering loans and financing options to homebuyers, which includes interest income from these loans. The company's strategic partnerships with various retailers and developers also enhance its distribution channels, leading to increased sales volume. Furthermore, Legacy Housing benefits from economies of scale in its manufacturing operations, enabling cost efficiencies that contribute to its overall profitability.

Legacy Housing Financial Statement Overview

Summary

Legacy Housing demonstrates strong profitability and a solid balance sheet with minimal leverage, indicating financial stability. However, the decline in revenue growth and negative free cash flow growth are concerns that need addressing for sustained long-term growth.

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: 19.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.74 is below the 20-day moving average (MA) of 20.12, below the 50-day MA of 21.16, and below the 200-day MA of 23.70, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 15.45 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEGH	72 Outperform	$471.17M	10.04	9.62%	―	10.25%	-10.52%
CCS	69 Neutral	$1.71B	8.51	8.37%	1.99%	-6.28%	-31.55%
LGIH	65 Neutral	$979.02M	9.36	5.21%	―	-20.62%	-45.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HOV	60 Neutral	$586.25M	13.23	7.69%	―	-0.84%	-76.30%
BZH	56 Neutral	$598.17M	13.09	3.67%	―	1.77%	-66.27%
UHG	44 Neutral	$82.34M	-4.39	-51.69%	―	-6.20%	24.90%

Legacy Housing Corporate Events

Legacy Housing Shareholders Elect Directors, Ratify Auditor

Legacy Housing held its Annual Meeting of Stockholders on December 18, 2025, with 20,747,424 of 23,868,727 eligible common shares represented in person or by proxy. Shareholders elected five directors—Curtis D. Hodgson, Kenneth E. Shipley, Brian J. Ferguson, Skyler M. Howton and Jeffrey K. Stouder—to one-year terms, and ratified Frazier & Deeter, LLC as the company’s independent registered public accounting firm for the 2025 fiscal year, reinforcing continuity in both board governance and external audit oversight.

Legacy Housing Names Veteran Executive Jon Langbert as CFO

On December 18, 2025, the company’s board appointed veteran finance executive and entrepreneur Jon Langbert, 60, as chief financial officer, succeeding interim CFO Ronald Arrington, who stepped down the same day. Langbert brings experience ranging from founding and leading businesses in internet retail, gaming equipment operations, hotel development and financial services, to early-career roles in finance and accounting at Electronic Data Systems, and holds finance and MBA degrees from the University of Texas at Austin and Harvard Business School; his appointment, with a formal employment agreement expected to follow, signals a move to bolster the company’s financial leadership with a seasoned operator who has no disclosed related-party or family ties to existing executives or directors.

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.

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.

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.

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.