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Legacy Education Inc. (LGCY)
:LGCY
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Legacy Education Inc.
(NYSE MKT:LGCY)
Rating:78Outperform
Price Target:
$13.50
▲(2.12% Upside)
Legacy Education Inc. (LGCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)89.73K
Price to Earnings (P/E)23.2
Beta (1Y)1.09
Revenue Growth37.92%
EPS Growth37.61%
CountryUS
Employees195
SectorConsumer Defensive
Sector Strength47
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding12,380,557
10 Day Avg. Volume78,076
30 Day Avg. Volume89,732
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/Revenue1.65
Enterprise Value/Gross Profit3.82
Enterprise Value/Ebitda9.34
Forecast
1Y Price Target
$13.50Price Target Upside2.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Legacy Education Inc. Business Overview & Revenue Model
Company DescriptionLegacy Education Inc. provides education services to students, high school graduates, and working parents in the United States. The company offers a range of certificate or degree programs, including ultrasound technician (UT), vocational nursing (VN), VN Associate of Applied Science degree, Associate degree of nursing, nursing assistant, magnetic resonance imaging (MRI) Associate of Applied Science, cardiac sonography, pharmacy technician, dental assisting, clinical medical assisting, medical administrative assisting, medical billing and coding, and veterinary assistant. It also provides a range of certificate or degree programs, such as phlebotomy technician avocational, nursing assistant avocational, UT Associate of Applied Science degree, business administrative specialist, computer specialist, accounting, medical administrative assistant, medical assisting, veterinary technology Associate of Applied Science, avocational phlebotomy technician program, registered nurse to Bachelor of Science in nursing, and diagnostic medical sonography program. The company operates under the High Desert Medical College, Central Coast College, and Integrity College of Health academic institutions. Legacy Education Inc. was incorporated in 2020 and is based in Temecula, California.
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:May 15, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 13, 2025
Earnings Call Sentiment Positive
The earnings call indicates a robust performance with significant revenue and enrollment growth, successful acquisition integration, and a strong cash position. However, the increase in expenses and impact of seasonality are noted as challenges. Overall, the positives significantly outweigh the negatives.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Legacy Education reported a 50.7% year-over-year revenue increase to $18.6 million for Q3, marking the 11th consecutive quarter of double-digit revenue growth.
Significant Increase in Student Enrollment
There was a 70.7% increase in new student starts and a 49.8% growth in ending enrollment, reaching 3,245 students as of March 31, 2025.
Profitable Financial Performance
Net income increased 57.1% to $2.8 million, and adjusted EBITDA rose 60% to $3.9 million year-over-year.
Successful Acquisition Integration
The acquisition of Contra Costa Medical Career College added 468 students and expanded the company's footprint in high-demand healthcare markets.
Strong Cash Position
Legacy Education has $17.3 million in cash and $22 million in working capital, providing ample liquidity for growth and acquisitions.
Negative Updates
Higher General and Administrative Expenses
General and administrative expenses increased to $4.6 million or 24.9% of revenue, up from $3.3 million or 26.8% last year, driven by higher marketing, professional fees, and bad debt expense.
Seasonality Impact on Revenue
Quarterly revenue is affected by seasonality, with Q1 and Q3 typically being stronger quarters, potentially impacting future quarters' performance.
Company Guidance
During the Legacy Education Third Quarter Fiscal 2025 earnings call, the company highlighted its impressive financial performance, demonstrating robust growth across multiple key metrics. Revenue increased by 50.7% year-over-year, reaching $18.6 million, driven by a 70.7% surge in new student starts and a 49.8% rise in ending enrollment to 3,245 students. This growth was partly attributed to the acquisition of Contra Costa Medical Career College, which expanded their student base by 468. The company achieved a net income of $2.8 million, or $0.21 per diluted share, marking a 57.1% increase from the previous year, and an adjusted EBITDA of $3.9 million, up 60% year-over-year. Operationally, Legacy Education's six campuses in California experienced strong enrollment trends, leveraging hybrid learning models and advanced simulation technology. Financial stability was underscored by $17.3 million in cash and $22 million in working capital. Legacy Education also reported an overall nursing NCLEX pass rate of 83%, with placement rates of 75% and 76% through accrediting bodies ACCET and ABHES, respectively. Looking ahead, the company aims to continue expanding its program offerings and evaluating acquisition opportunities to further enhance its market presence.Legacy Education Inc. Financial Statement Overview
Summary
Legacy Education Inc. shows strong revenue growth and profitability, with a solid balance sheet and manageable debt. However, revenue stability and cash flow fluctuations present some risks.Income Statement
Legacy Education Inc. shows strong revenue growth and improving profitability. The revenue grew by 29.7% from 2023 to 2024, signaling a positive growth trajectory. Gross profit and net profit margins are solid at 42.7% and 11.1% respectively for 2024, indicating stable profitability. However, the company experienced a significant revenue drop in 2021, which raises concerns about revenue stability.72
Positive
Balance Sheet
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.22, which reflects a low level of leverage and financial risk. Stockholders' equity has grown consistently, and the equity ratio is a robust 63.8% in 2024, indicating financial stability. However, the total debt increased from 2022 to 2023, which warrants monitoring.68
Positive
Cash Flow
Free cash flow is positive and growing, with a 2024 free cash flow of $1.23 million, representing a decline from the previous year's $1.57 million. The operating cash flow to net income ratio in 2024 is 0.32, suggesting moderate efficiency in cash generation relative to income. Although positive, cash flows show some fluctuation over the years.65
Positive
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Dec 2019 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 46.00M | 35.46M | 30.70M | 57.81M | 16.43M |
| Gross Profit | 19.65M | 35.23M | 12.59M | 30.06M | 5.04M |
| EBITDA | 7.37M | 4.19M | 3.67M | 10.12M | -702.79K |
| Net Income | 5.11M | 2.67M | 2.34M | 9.61M | -687.64K |
Balance Sheet | |||||
| Total Assets | 35.17M | 27.25M | 20.61M | 17.95M | 10.76M |
| Cash, Cash Equivalents and Short-Term Investments | 10.38M | 9.29M | 8.77M | 7.85M | 1.42M |
| Total Debt | 4.84M | 5.56M | 953.24K | 1.10M | 1.21M |
| Total Liabilities | 12.75M | 11.82M | 7.01M | 6.95M | 4.68M |
| Stockholders Equity | 22.42M | 15.42M | 13.60M | 11.00M | 6.08M |
Cash Flow | |||||
| Free Cash Flow | 1.23M | 1.57M | 793.73K | 4.64M | -683.43K |
| Operating Cash Flow | 1.65M | 1.77M | 1.09M | 4.84M | -596.95K |
| Investing Cash Flow | -423.71K | -195.08K | -294.87K | -199.59K | -271.01K |
| Financing Cash Flow | -238.55K | -1.05M | 129.03K | 1.79M | 2.06M |
Legacy Education Inc. Technical Analysis
Positive
13.22
Price Trends
11.38
Positive
9.59
Positive
8.66
Positive
Market Momentum
0.48
Negative
57.96
Neutral
71.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCY, the sentiment is Positive. The current price of 13.22 is above the 20-day moving average (MA) of 11.60, above the 50-day MA of 11.38, and above the 200-day MA of 8.66, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 71.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGCY.
Legacy Education Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 23.21 | 24.70% | ― | 37.92% | 37.61% | ||
63 Neutral | $20.42B | 14.38 | -3.63% | 3.17% | 2.07% | -6.17% | |
52 Neutral | $10.40M | ― | -49.39% | ― | ― | ― | |
51 Neutral | $18.89M | ― | ― | ― | ― | ||
44 Neutral | $302.99K | ― | ― | ― | ― | ||
43 Neutral | $6.57M | ― | -4.26% | ― | -14.35% | -744.00% | |
| ― | $5.63M | ― | -144.05% | ― | ― | ― |
* Consumer Defensive Sector Average
Performance Comparison
LGCY
Legacy Education Inc.
13.22
8.83
201.14%
VSA
TCTM Kids IT Education
1.86
0.72
63.16%
AMBO
Ambow Education Holding
3.54
2.24
172.31%
WAFU
Wah Fu Education Group
1.46
-0.42
-22.34%
CLEUF
China Liberal Education Holdings
0.18
-326.34
-99.94%
GSUN
Golden Sun Education Group Limited Class A
2.80
-3.44
-55.13%
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.