Legacy Housing Corp (LEGH) stock analysis
Close on Nov 12, 2026Market cap $674.80MP/E 10.6Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid18 of 30 checks passed
Legacy Housing passes 18 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 32.5% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $29.08 is below our fair value estimate of $43.10.
Return on capital over 10%
Return on invested capital was 11.6%, above the 10% that usually covers the cost of capital.
No debt
Legacy Housing has no borrowings on its latest balance sheet.
What to watch
Return on equity under 15%
Return on equity was 11.4% over the last twelve months and averaged 14.4% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew -13.8% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -14.0% a year over the last three fiscal years.
P/E above its 5-year median
Legacy Housing's P/E of 10.9 is above its own 5-year median of 10.2.
Valuation5/6
P/E above its 5-year median
Legacy Housing's P/E of 10.9 is above its own 5-year median of 10.2.
P/E below the industry
Legacy Housing's P/E of 10.9 is below the Materials median of 21.9.
EV/EBITDA below its 5-year median
Legacy Housing's EV/EBITDA of 8.8 is below its 5-year median of 8.8.
P/B below the industry
Legacy Housing's price-to-book of 1.19 is below the Materials median of 2.09.
Trading below fair value
The share price of $29.08 is below our fair value estimate of $43.10.
Margin of safety over 20%
The price is 32.5% below fair value, more than the 20% cushion we look for.
Growth3/6
Revenue growing under 10% a year
Revenue grew -13.8% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -14.0% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 30.3% over the last twelve months, against a 5-year average of 1.9% a year.
Growing faster than the industry
Revenue grew 15.6% over the last twelve months; the Materials median is -1.9%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 51.1% over the last twelve months, against 48.6% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 11.4% over the last twelve months and averaged 14.4% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 11.6%, above the 10% that usually covers the cost of capital.
Return on equity below the industry
Legacy Housing's return on equity of 11.4% is below the Materials median of 11.4%.
Earnings grew over 5 years
Net income grew 1.9% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 30.1% over the last twelve months, against a 5-year average of 27.9%.
Net margin above the industry
Legacy Housing's net margin of 30.1% is above the Materials median of 6.8%.
Financial health6/6
No debt
Legacy Housing has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 1067.2 times.
Short-term assets cover short-term debts
Current assets are 3.25 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 9.61; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Legacy Housing has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$43.10
The share price is 33% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 16.0× | 10.2× | 21.9× | $42.75 | 47% |
| EV/EBITDA | 13.5× | 8.8× | 18.3× | $44.18 | 41% |
| P/B | 1.7× | 1.2× | 2.1× | $40.70 | 12% |
| Earnings powerleft out, too far from the others | 8.9% cost of equity | – | – | $8.54 | – |
| Fair value | $43.10 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 10.2
- Materials median 21.9
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $2.54M
- Value traded per 1% price move
- $1.48M
Downside
Low risk
- Typical loss in a bad month
- 10.5%
- Volatility (annualized)
- 35%
- Sharpe ratio, 1 year
- 1.00
- Beta to the S&P 500 (5Y)
- 0.80
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2017 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -10.7% | -13.8% | -1.4% | – | |
| Gross profit | -15.3% | -9.3% | +3.5% | – | |
| Operating income | -23.9% | -14.7% | +0.3% | – | |
| Net income | -32.2% | -14.9% | +1.9% | – | |
| EPS, diluted | -29.8% | -14.0% | +2.1% | – | |
| Free cash flow | +5.1% | – | – | – |
Returns and balance sheet
9 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 15.8% | 8.2% | |
| Return on assets | – | 12.2% | 7.5% | |
| Current ratio | – | 1.50 | 3.51 | |
| Interest coverage | – | 45.2× | 1728.8× | |
| Inventory turnover | – | 4.0× | 2.2× | |
| Capex to revenue | – | 1.6% | 5.5% | |
| Diluted shares | – | 24M | 24M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Legacy Housing generated $148.67M from operations and spent $48.68M on capital expenditure, dividends and share buybacks. 73% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 25.4% | 0.30× | 1.09× | 8.2% |
| FY2024 | 33.5% | 0.35× | 1.12× | 13.2% |
| FY2023 | 28.8% | 0.40× | 1.15× | 13.3% |
| FY2022 | 26.4% | 0.64× | 1.16× | 19.6% |
| FY2021 | 25.3% | 0.56× | 1.24× | 17.5% |
| FY2020 | 21.5% | 0.57× | 1.29× | 15.8% |
| FY2019 | 17.1% | 0.65× | 1.26× | 14.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$41.81M
- Cash generatingOperating cash flow above zero$37.15M
- Return on assets improvedROA up on the prior year12.2% → 7.8%
- Earnings backed by cashOperating cash flow above net income$37.15M vs $41.81M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose3.80 → 3.51
- No dilutionShare count did not rise25M → 24M
- Gross margin improvedGross margin up on the prior year51.10% → 48.45%
- More efficientAsset turnover rose0.36 → 0.31
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