Legacy Housing Corp. (LEGH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cavco Industries, Inc.

Frontdoor, Inc.

Green Brick Partners, Inc.

Patrick Industries, Inc.

M/I Homes, Inc.

Century Communities, Inc.

Legacy Housing Corp.

Dream Finders Homes, Inc.

LGI Homes, Inc.

Hovnanian Enterprises, Inc.

Beazer Homes USA, Inc.

Why is Legacy Housing Corp. ?

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At USD 0.03 MM has Grown at 325%
NET PROFIT(9M) At USD 27.89 MM has Grown at -31.28%
ROCE(HY) Lowest at 8.14%

With ROE of 7.93%, it has a expensive valuation with a 0.91 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.69%, its profits have fallen by -32%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Legacy Housing Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Legacy Housing Corp.

15.69%

0.23

36.31%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.41%

EBIT Growth (5y)

0.40%

EBIT to Interest (avg)

61.43

Debt to EBITDA (avg)

0.22

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.38

Tax Ratio

19.18%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

46.84%

ROCE (avg)

16.08%

ROE (avg)

14.33%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.91

EV to EBIT

9.72

EV to EBITDA

9.37

EV to Capital Employed

0.91

EV to Sales

2.87

PEG Ratio

Dividend Yield

ROCE (Latest)

9.31%

ROE (Latest)

7.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 39.19 MM

RAW MATERIAL COST(Y)

Fallen by -4.79% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 38 %

-19What is not working for the Company

INTEREST(HY)

At USD 0.03 MM has Grown at 325%

NET PROFIT(9M)

At USD 27.89 MM has Grown at -31.28%

ROCE(HY)

Lowest at 8.14%

INTEREST COVERAGE RATIO(Q)

Lowest at 46,639.29

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.88 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.72 times

NET SALES(Q)

Lowest at USD 34.37 MM

Here's what is working for Legacy Housing Corp.

Operating Cash Flow

Highest at USD 39.19 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit Margin

Highest at 38 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -4.79% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Legacy Housing Corp.

Interest

At USD 0.03 MM has Grown at 325%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

At USD 34.37 MM has Fallen at -16.47%

over average net sales of the previous four periods of USD 41.14 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Interest Coverage Ratio

Lowest at 46,639.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 27.89 MM has Grown at -31.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Sales

Lowest at USD 34.37 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Inventory Turnover Ratio

Lowest at 1.88 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio