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Legacy Education Inc. (LGCY)
:LGCY
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Legacy Education Inc.
(NYSE MKT:LGCY)
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Rating:78Outperform
Price Target:
$13.50
▲(37.90% Upside)
Legacy Education Inc. scores highly due to its strong financial performance and positive earnings call. The company's growth in revenue and enrollment, alongside strategic expansion efforts, are key strengths. Technical indicators support a bullish outlook, though the valuation suggests moderate pricing relative to peers. The absence of a dividend yield is a minor drawback.
Legacy Education Inc. (LGCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)117.38K
Price to Earnings (P/E)15.6
Beta (1Y)1.15
Revenue Growth39.49%
EPS Growth38.22%
CountryUS
Employees195
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding12,561,684
10 Day Avg. Volume58,550
30 Day Avg. Volume117,379
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)2.13
Price to Sales (P/S)1.04
P/FCF Ratio38.94
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue2.54
Enterprise Value/Gross Profit5.86
Enterprise Value/Ebitda14.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Legacy Education Inc. Business Overview & Revenue Model
Company DescriptionLegacy Education Inc. (LGCY) is a financial education company that focuses on providing individuals with the tools and knowledge necessary for wealth building through real estate investments and entrepreneurship. The company operates primarily in the education sector, offering a range of courses, seminars, and workshops that cover various aspects of real estate investing, personal finance, and business development. LGCY aims to empower its clients to achieve financial independence through practical education and mentorship.
How the Company Makes MoneyLegacy Education Inc. generates revenue primarily through the sale of educational products and services, including online courses, live seminars, and coaching programs. The company typically employs a tiered pricing model, where customers can select from various packages that offer different levels of access to materials and personal instruction. Additionally, LGCY may earn revenue from partnerships with other educational institutions or financial service providers that offer complementary services. Upselling premium services and products, such as one-on-one coaching or advanced training sessions, also contributes significantly to its earnings.
Legacy Education Inc. Earnings Call Summary
Earnings Call Date:Sep 25, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
Legacy Education showed strong revenue and enrollment growth, successful graduate outcomes, and strategic expansions in fiscal 2025. Despite these positives, there were concerns over increased AR reserves and higher G&A expenses. The highlights outweigh the lowlights, indicating an overall positive sentiment.Q4-2025 Updates
Positive Updates
Strong Revenue and Enrollment Growth
Fourth quarter revenue of $17.9 million, up 40.8% year-over-year, and full fiscal year revenue climbed 39.5% to $64.2 million. Enrollment surged 41.8% to 3,101 students with a 26.9% rise in new student starts to 3,194.
High Graduate Success Rates
Achieved an 81.8% NCLEX pass rate in nursing with placement rates averaging 74.3% and 74.6% through accrediting agencies.
Strategic Expansion and Accreditations
Secured approvals for three new degree programs and two certificate programs. Achieved initial accreditation from the National League for Nursing Commission for Nursing Education Accreditation for RN to BSN track.
Financial and Operational Strength
Net income for Q4 reached $1.2 million, up 27.6%, with adjusted EBITDA increasing 31.3% to $11 million for the year. The balance sheet shows $20.3 million in cash with negligible debt.
Strategic Developments and Governance
Strengthened governance with new Board members and advisory board, along with ongoing strategic developments and acquisitions to expand reach.
Negative Updates
Increased AR Reserve
In Q4, increased AR reserve by approximately $700,000 due to softness in student payments from graduate students, impacting G&A expenses.
Higher General and Administrative Expenses
G&A expenses rose significantly due to increased marketing and professional fees, as well as the AR reserve increase.
Company Guidance
During the earnings call for Legacy Education's fourth quarter and fiscal year 2025, several key metrics were highlighted, demonstrating significant growth and strategic initiatives. The company's revenue for Q4 increased by 40.8% year-over-year to $17.9 million, driven by a 15.7% rise in new student starts. For the full fiscal year, revenue climbed 39.5% to $64.2 million, supported by a 41.8% increase in enrollment to 3,101 students and a 26.9% rise in new student starts to 3,194. Legacy Education's net income for Q4 grew by 27.6% to $1.2 million, with an adjusted EBITDA increase of 31.3% to $11 million for the year. The company also achieved an 81.8% NCLEX pass rate and maintained placement rates of 74.3% and 74.6% through its accrediting agencies. The integration of Contra Costa Medical Career College added 468 students, and new program approvals expanded their curriculum. Financially, Legacy Education ended the year with $20.3 million in cash and negligible debt, positioning them well for continued investment and growth.Legacy Education Inc. Financial Statement Overview
Summary
Legacy Education Inc. exhibits strong financial health with robust revenue growth and profitability improvements. The balance sheet is stable with low leverage, and cash flows are positive, supporting operational and investment needs. While there are some fluctuations in revenue and asset management, the overall financial trajectory is positive, positioning the company well for future growth.Income Statement
Legacy Education Inc. has demonstrated strong revenue growth over the years, with a significant increase from $16.4M in 2019 to $46M in 2024. The gross profit margin improved substantially, indicating effective cost management. The net profit margin also shows a positive trend, reflecting increased profitability. However, there was a dip in revenue in 2021, which could indicate potential volatility in revenue streams.85
Very Positive
Balance Sheet
The company's balance sheet shows a healthy equity ratio, with stockholders' equity consistently growing, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage. Return on equity has improved, reflecting efficient use of equity capital. However, fluctuations in total assets and liabilities suggest potential instability in asset management.78
Positive
Cash Flow
Operating cash flow has been positive and growing, indicating strong cash generation capabilities. Free cash flow has also shown consistent growth, supporting the company's ability to fund operations and investments. The operating cash flow to net income ratio is healthy, suggesting effective conversion of income into cash. However, the decline in free cash flow in 2024 compared to 2023 may require monitoring.80
Positive
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.97M | 46.00M | 35.46M | 30.70M | 57.81M | 16.43M |
| Gross Profit | 25.54M | 19.65M | 35.23M | 12.59M | 30.06M | 5.04M |
| EBITDA | 10.44M | 7.37M | 4.19M | 3.67M | 10.12M | -702.79K |
| Net Income | 19.18M | 5.11M | 2.67M | 2.34M | 9.61M | -687.64K |
Balance Sheet | ||||||
| Total Assets | 67.10M | 35.17M | 27.25M | 20.61M | 17.95M | 10.76M |
| Cash, Cash Equivalents and Short-Term Investments | 17.33M | 10.38M | 9.29M | 8.77M | 7.85M | 1.42M |
| Total Debt | 17.54M | 4.84M | 5.56M | 953.24K | 1.10M | 1.21M |
| Total Liabilities | 27.82M | 12.75M | 11.82M | 7.01M | 6.95M | 4.68M |
| Stockholders Equity | 39.28M | 22.42M | 15.42M | 13.60M | 11.00M | 6.08M |
Cash Flow | ||||||
| Free Cash Flow | 2.98M | 1.23M | 1.57M | 793.73K | 4.64M | -683.43K |
| Operating Cash Flow | 3.74M | 1.65M | 1.77M | 1.09M | 4.84M | -596.95K |
| Investing Cash Flow | -6.90M | -423.71K | -195.08K | -294.87K | -199.59K | -271.01K |
| Financing Cash Flow | 9.07M | -238.55K | -1.05M | 129.03K | 1.79M | 2.06M |
Legacy Education Inc. Technical Analysis
Negative
9.79
Price Trends
11.12
Negative
11.04
Negative
9.37
Negative
Market Momentum
-0.45
Negative
35.80
Neutral
21.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCY, the sentiment is Negative. The current price of 9.79 is above the 20-day moving average (MA) of 9.61, below the 50-day MA of 11.12, and above the 200-day MA of 9.37, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 35.80 is Neutral, neither overbought nor oversold. The STOCH value of 21.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LGCY.
Legacy Education Inc. Peers Comparison
UnderperformOutperform
Sector (62)
LGCY
Legacy Education Inc.
9.04
3.56
64.96%
VSA
TCTM Kids IT Education
2.50
1.51
152.53%
AMBO
Ambow Education Holding
3.95
2.39
153.21%
WAFU
Wah Fu Education Group
1.65
-0.04
-2.37%
CLEUF
China Liberal Education Holdings
0.03
-281.97
-99.99%
GSUN
Golden Sun Education Group Limited Class A
2.20
-0.73
-24.91%
Legacy Education Inc. Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Legacy Education Inc. Releases New Presentation Materials
Neutral
May 19, 2025
Legacy Education Inc. has prepared presentation materials to be used from May 19, 2025, onwards, detailing the company’s operations and performance. These materials are intended to provide summary information within the context of the company’s filings with the SEC and other public announcements, potentially impacting stakeholder understanding of the company’s future direction.
The most recent analyst rating on (LGCY) stock is a Buy with a $8.25 price target. To see the full list of analyst forecasts on Legacy Education Inc. stock, see the LGCY Stock Forecast page.
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.