NasdaqGS:LEGH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Solid track record with adequate balance sheet.


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

Stable Share Price: LEGH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LEGH's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

LEGH

3.6%

US Consumer Durables

-0.06%

US Market


1 Year Return

-1.9%

LEGH

23.5%

US Consumer Durables

19.0%

US Market

Return vs Industry: LEGH underperformed the US Consumer Durables industry which returned 23.5% over the past year.

Return vs Market: LEGH underperformed the US Market which returned 19% over the past year.


Shareholder returns

LEGHIndustryMarket
7 Day2.2%3.6%-0.06%
30 Day0.3%4.0%4.4%
90 Day-2.0%7.2%6.3%
1 Year-1.9%-1.9%25.1%23.5%21.7%19.0%
3 Yearn/a21.2%16.8%46.4%36.7%
5 Yearn/a53.2%43.5%91.0%69.9%

Long-Term 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

Valuation

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

10.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LEGH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LEGH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LEGH is good value based on its PE Ratio (10.4x) compared to the US Consumer Durables industry average (14.3x).

PE vs Market: LEGH is good value based on its PE Ratio (10.4x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: LEGH is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: LEGH is good value based on its PB Ratio (1.4x) 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 2 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEGH's forecast earnings growth (3.8% per year) is above the savings rate (2.2%).

Earnings vs Market: LEGH's earnings (3.8% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: LEGH's earnings are forecast to grow, but not significantly.

Revenue vs Market: LEGH's revenue (5.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: LEGH's revenue (5.2% 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?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEGH has high quality earnings.

Growing Profit Margin: LEGH's current net profit margins (20.1%) are higher than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: LEGH's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: LEGH's earnings growth over the past year (38.5%) exceeds its 5-year average (13.3% per year).

Earnings vs Industry: LEGH earnings growth over the past year (38.5%) exceeded the Consumer Durables industry 29.1%.


Return on Equity

High ROE: LEGH's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is Legacy Housing's financial position?


Financial Position Analysis

Short Term Liabilities: LEGH's short term assets ($55.7M) exceed its short term liabilities ($28.1M).

Long Term Liabilities: LEGH's short term assets ($55.7M) exceed its long term liabilities ($51.6M).


Debt to Equity History and Analysis

Debt Level: LEGH's debt to equity ratio (17.6%) 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 operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LEGH's interest payments on its debt are well covered by EBIT (191.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Kenny Shipley (61 yo)

1.75yrs

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: Kenny's total compensation ($USD50.00K) is below average for companies of similar size in the US market ($USD1.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Curtis Hodgson
Co-Founder & Executive Chairman of the Board1.75yrsUS$50.00k27.89%
$ 100.5m
Kenneth Shipley
Co-Founder1.75yrsUS$50.00k12.89%
$ 46.5m
Jeffrey Burt
Chief Accounting Officer1.33yrsUS$351.69k0.25%
$ 894.0k
Thomas Kerkaert
Chief Financial Officer0.25yrno datano data
Mick Barker
Chief Operating Officer and Fort Worth General Managerno datano datano data
Mary Saenz
Director of HR & Regulatory Compliance0.25yrno datano data
Ed Spaeth
Sales Managerno datano datano data
Larry Badgley
Director of Corporate Developmentno dataUS$150.00kno data
Charles Mack
Chief Marketing Officer1.83yrsno datano data
Shane Allred
Director of Financial Reporting & Corporate Secretary0.25yrno datano data

0.8yrs

Average Tenure

61yo

Average Age

Experienced Management: LEGH's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Curtis Hodgson
Co-Founder & Executive Chairman of the Board1.75yrsUS$50.00k27.89%
$ 100.5m
Kenneth Shipley
Co-Founder1.75yrsUS$50.00k12.89%
$ 46.5m
John Isakson
Independent Director1.92yrsUS$50.00k0.0030%
$ 10.9k
Richard Florea
Independent Director0.67yrno datano data
Stephen Crawford
Independent Director1yrUS$10.00kno data

1.8yrs

Average Tenure

61yo

Average Age

Experienced Board: LEGH's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$360.463m
  • Shares outstanding: 24.19m
  • 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
519MUN (Boerse Muenchen)YesCommon StockDEEURDec 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 Analysis2020/11/23 23:52
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.