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.

Green Brick Partners, Inc.

Patrick Industries, Inc.

Frontdoor, Inc.

Century Communities, Inc.

Legacy Housing Corp.

Dream Finders Homes, Inc.

M/I Homes, Inc.

Beazer Homes USA, Inc.

Hovnanian Enterprises, Inc.

LGI Homes, Inc.

Why is Legacy Housing Corp. ?

Negative results in Sep 25

ROCE(HY) Lowest at 9.62%
RAW MATERIAL COST(Y) Grown by 11.7% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 1.86 times

With ROE of 9.23%, it has a fair valuation with a 0.94 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 -26.92%, its profits have fallen by -11.2%

Below par performance in long term as well as near term

Along with generating -26.92% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Legacy Housing Corp.

-26.92%

-0.52

34.41%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.05%

EBIT Growth (5y)

4.31%

EBIT to Interest (avg)

61.43

Debt to EBITDA (avg)

0.22

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.40

Tax Ratio

19.18%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

44.16%

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

0.94

EV to EBIT

8.92

EV to EBITDA

8.62

EV to Capital Employed

0.94

EV to Sales

2.65

PEG Ratio

Dividend Yield

ROCE (Latest)

10.55%

ROE (Latest)

9.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 26.01 MM

DEBT-EQUITY RATIO (HY)

Lowest at -2.41 %

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

-19What is not working for the Company

ROCE(HY)

Lowest at 9.62%

RAW MATERIAL COST(Y)

Grown by 11.7% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.86 times

NET SALES(Q)

At USD 40.48 MM has Fallen at -12.14%

OPERATING PROFIT(Q)

Lowest at USD 10.13 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 25.02 %

PRE-TAX PROFIT(Q)

Lowest at USD 10.26 MM

NET PROFIT(Q)

Lowest at USD 8.64 MM

EPS(Q)

Lowest at USD 0.35

Here's what is working for Legacy Housing Corp.

Operating Cash Flow

Highest at USD 26.01 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)

Debt-Equity Ratio

Lowest at -2.41 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Pre-Tax Profit

At USD 10.26 MM has Fallen at -39.87%

over average net sales of the previous four periods of USD 17.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 8.64 MM has Fallen at -37.45%

over average net sales of the previous four periods of USD 13.82 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

At USD 40.48 MM has Fallen at -12.14%

over average net sales of the previous four periods of USD 46.07 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 10.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 25.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 10.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 8.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.35

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 1.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 11.7% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales