OTCPK:LEAI

Stock Analysis Report

Executive Summary

Legacy Education Alliance, Inc. provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, the United Kingdom, and internationally.

Snowflake

Fundamentals

Slightly overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

LEAI

1.8%

US Consumer Services

2.3%

US Market


1 Year Return

-75.1%

LEAI

24.0%

US Consumer Services

5.6%

US Market

Return vs Industry: LEAI underperformed the US Consumer Services industry which returned 24% over the past year.

Return vs Market: LEAI underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

LEAIIndustryMarket
7 Day0.5%1.8%2.3%
30 Day-32.7%-0.6%-1.0%
90 Day-58.8%-0.6%-0.7%
1 Year-75.1%-75.1%24.5%24.0%7.9%5.6%
3 Year-68.7%-68.7%104.5%93.6%45.6%36.3%
5 Yearn/a146.3%120.6%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LEAI ($0.07) is trading below our estimate of fair value ($4.4)

Significantly Undervalued: LEAI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LEAI is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: LEAI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate LEAI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LEAI has negative assets, so we can't compare its PB Ratio to the US Consumer Services industry average.


Next Steps

Future Growth

How is Legacy Education Alliance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

34.4%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Legacy Education Alliance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of LEAI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Legacy Education Alliance's filings and announcements here.
  • Explore growth companies in the Consumer Services industry.

Past Performance

How has Legacy Education Alliance performed over the past 5 years?

-41.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LEAI is unprofitable, and losses have increased over the past 5 years at a rate of -41% per year.

Accelerating Growth: Unable to compare LEAI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LEAI is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (5.5%).


Return on Equity

High ROE: LEAI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: LEAI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: LEAI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Legacy Education Alliance's financial position?


Financial Position Analysis

Short Term Liabilities: LEAI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LEAI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LEAI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LEAI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: LEAI's debt is well covered by operating cash flow (472.3%).

Interest Coverage: Insufficient data to determine if LEAI's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: LEAI has a low level of unsold assets or inventory.

Debt Coverage by Assets: LEAI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate LEAI'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 LEAI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LEAI'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 LEAI'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 Education Alliance's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

James May (64yo)

0.8yrs

Tenure

US$393,155

Compensation

Mr. James E. May has been the Chief Executive Officer of Legacy Education Alliance, Inc. since June 7, 2019 and served as its Interim Chief Executive Officer form January 15, 2019 to June 7, 2019 and has b ...


CEO Compensation Analysis

Compensation vs. Market: James has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: James's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

0.8yrs

Average Tenure

48.5yo

Average Age

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


Board Age and Tenure

2.3yrs

Average Tenure

64yo

Average Age

Experienced Board: LEAI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$2,18926 Nov 18
Anthony Humpage
EntityIndividual
Role
Chairman of the Board
Chairman
Shares10,000
Max PriceUS$0.22
BuyUS$4,30021 Nov 18
Peter Harper
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$0.21
BuyUS$3,92621 Nov 18
Anthony Humpage
EntityIndividual
Role
Chairman of the Board
Chairman
Shares20,000
Max PriceUS$0.22
BuyUS$4,14420 Nov 18
Anthony Humpage
EntityIndividual
Role
Chairman of the Board
Chairman
Shares20,000
Max PriceUS$0.21
BuyUS$2,98320 Nov 18
Cary Sucoff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$0.20

Ownership Breakdown


Management Team

  • James May (64yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$393.16k
  • Michael English (63yo)

    Consultant

    • Tenure: 0yrs
  • Iain Edwards (51yo)

    Co-President & COO

    • Tenure: 0.8yrs
    • Compensation: US$330.23k
  • Martin Foster (46yo)

    Co-President

    • Tenure: 0.8yrs
    • Compensation: US$261.37k
  • Stacey Perkins (39yo)

    Vice President of Global Marketing

    • Tenure: 3.8yrs
  • Vanessa Guzmán-Clark (38yo)

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Pete Harper (57yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$75.43k
  • Anthony Humpage (64yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: US$690.81k
  • James May (64yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$393.16k
  • Cary Sucoff (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$75.43k

Company Information

Legacy Education Alliance, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Legacy Education Alliance, Inc.
  • Ticker: LEAI
  • Exchange: OTCPK
  • Founded:
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$1.560m
  • Shares outstanding: 23.16m
  • Website: https://www.legacyeducationalliance.com

Number of Employees


Location

  • Legacy Education Alliance, Inc.
  • 1612 Cape Coral Parkway East
  • Cape Coral
  • Florida
  • 33904
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEAIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2014

Biography

Legacy Education Alliance, Inc. provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:25
End of Day Share Price2019/10/16 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.