NasdaqGS:LEGH

Stock Analysis Report

Executive Summary

Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny houses primarily in the southern United States.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Legacy Housing's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

LEGH

2.7%

US Consumer Durables

0.5%

US Market


1 Year Return

n/a

LEGH

45.4%

US Consumer Durables

6.8%

US Market

Return vs Industry: Insufficient data to determine how LEGH performed against the US Consumer Durables industry.

Return vs Market: Insufficient data to determine how LEGH performed against the US Market.


Shareholder returns

LEGHIndustryMarket
7 Day0.1%2.7%0.5%
30 Day2.8%4.3%-0.8%
90 Day26.8%8.5%-0.9%
1 Yearn/a47.4%45.4%9.2%6.8%
3 Yearn/a53.8%49.0%45.6%36.2%
5 Yearn/a43.2%34.1%63.2%45.4%

Price Volatility Vs. Market

How volatile is Legacy Housing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Legacy Housing undervalued compared to its fair value and its price relative to the market?

14.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LEGH ($15.98) is trading above our estimate of fair value ($0.04)

Significantly Below Fair Value: LEGH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LEGH is poor value based on its PE Ratio (14.3x) compared to the Consumer Durables industry average (13.8x).

PE vs Market: LEGH is good value based on its PE Ratio (14.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: LEGH is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LEGH is overvalued based on its PB Ratio (1.9x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Legacy Housing forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEGH's forecast earnings growth (20.4% per year) is above the savings rate (2.7%).

Earnings vs Market: LEGH's earnings (20.4% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LEGH's revenue (9.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: LEGH's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LEGH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Legacy Housing performed over the past 5 years?

-9.3%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if LEGH's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: LEGH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LEGH had negative earnings growth (-9.3%) over the past year, making it difficult to compare to the Consumer Durables industry average (13.5%).


Return on Equity

High ROE: LEGH's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: LEGH has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate LEGH's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Legacy Housing's financial position?


Financial Position Analysis

Short Term Liabilities: LEGH's short term assets ($56.7M) exceeds its short term liabilities ($29.3M)

Long Term Liabilities: LEGH's short term assets (56.7M) exceeds its long term liabilities (13.3M)


Debt to Equity History and Analysis

Debt Level: LEGH's debt to equity ratio (6%) is considered satisfactory

Reducing Debt: Insufficient data to determine if LEGH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LEGH's debt is well covered by operating cash flow (25.5%).

Interest Coverage: LEGH's interest payments on its debt are well covered by EBIT (24.7x coverage).


Balance Sheet

Inventory Level: LEGH has a high level of physical assets or inventory.

Debt Coverage by Assets: LEGH's debt is covered by short term assets (assets are 4.507300x debt).


Next Steps

Dividend

What is Legacy Housing's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate LEGH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LEGH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if LEGH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LEGH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LEGH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Legacy Housing's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Kenny Shipley (60yo)

0.7yrs

Tenure

US$50,000

Compensation

Mr. Kenneth E. Shipley also known as Kenny, co-founded Legacy Housing Corporation in 2005 and has been its Director since January 2018 and serves as its Chief Executive Officer & President since February 0 ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Kenny's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Kenny's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.3yrs

Average Tenure

61.5yo

Average Age

Experienced Management: LEGH's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

60yo

Average Age

Experienced Board: LEGH's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: LEGH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$22,928,00002 Oct 19
Curtis Hodgson
EntityIndividual
Role
Chairman of the Board
Co-Founder & Executive Chairman of the Board
Shares1,600,000
Max PriceUS$14.33
BuyUS$60,25008 Feb 19
Phillip Blazek
EntityIndividual
Shares5,000
Max PriceUS$12.05
BuyUS$417,58621 Dec 18
Mark Bennett
EntityIndividual
Role
Member of the Board of Directors
Director
Shares34,773
Max PriceUS$12.01
BuyUS$88,87219 Dec 18
Mark Bennett
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,406
Max PriceUS$12.00
BuyUS$324,00017 Dec 18
Mark Bennett
EntityIndividual
Role
Member of the Board of Directors
Director
Shares27,000
Max PriceUS$12.00

Ownership Breakdown


Management Team

  • Cork Van Den Handel (63yo)

    CFO & Corporate Treasurer

    • Tenure: 0.3yrs
  • Larry Badgley (63yo)

    Director of Corporate Development

    • Tenure: 0yrs
    • Compensation: US$150.00k
  • Kenny Shipley (60yo)

    Co-Founder

    • Tenure: 0.7yrs
    • Compensation: US$50.00k
  • Curtis Hodgson (64yo)

    Co-Founder & Executive Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$50.00k
  • Mick Barker

    Chief Operating Officer and Fort Worth General Manager

    • Tenure: 0yrs
  • Ed Spaeth

    Sales Manager

    • Tenure: 0yrs
  • Jeffrey Burt (57yo)

    Chief Accounting Officer

    • Tenure: 0.3yrs
    • Compensation: US$253.65k
  • Neal Suit (43yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$213.08k

Board Members

  • Kenny Shipley (60yo)

    Co-Founder

    • Tenure: 0.7yrs
    • Compensation: US$50.00k
  • Curtis Hodgson (64yo)

    Co-Founder & Executive Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$50.00k
  • John Isakson (48yo)

    Director

    • Tenure: 0.8yrs
  • Mark Bennett (65yo)

    Director

    • Tenure: 0.8yrs
  • Philip Blazek (51yo)

    Director

    • Tenure: 0.8yrs

Company Information

Legacy Housing Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Legacy Housing Corporation
  • Ticker: LEGH
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$390.279m
  • Shares outstanding: 24.42m
  • Website: https://www.legacyhousingcorp.com

Number of Employees


Location

  • Legacy Housing Corporation
  • 1600 Airport Freeway
  • Suite 100
  • Bedford
  • Texas
  • 76022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEGHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2018

Biography

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; a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 01:00
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.