LEGH

Legacy Housing

Fundamental data last updated:April 13, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Consumer Cyclical

industry

Residential Construction

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/11/26

Business Summary

Legacy Housing operates in Residential Construction, generating cash by manufacturing and selling homes within a cyclical housing demand framework. The model converts land development, materials sourcing, and construction efficiency into finished housing inventory that can be sold at spreads reflected in its 7.90% operating margin. Its moat is not brand-driven dominance but cost discipline, balance sheet conservatism, and operational control, as evidenced by moderate leverage and strong liquidity. Cash generation depends on turning inventory efficiently and maintaining pricing power sufficient to protect margins through housing cycles, rather than on recurring contractual revenue streams.

 


Analyze LEGH on TradingView

VALUATION

P/E

12.1

Market Cap ($M USD)

$502

Forward P/E

-

PEG

1

PRICE TO SALES

3.1

PRICE TO BOOK

1

EV / EBITDA

9.3

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$1.74

Next Year EPS Growth Estimate

-

Next Year Revenue Growth Estimate

-

Return on Equity (ROE)

7.90%

FREE CASH FLOW

Operating Margin

29.40%

Debt-to-Equity

0

Piotroski F-Score

4

Altman Z-Score

7.5

Return on Invested Capital (ROIC)

7.90%

Current Ratio

3.5

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Analyze LEGH on TradingView

Gainseekers Quantitative Analysis

Summary

At 12.1x earnings with a Price/Book of 1 and a Price/Sales of 3.1, LEGH screens optically cheap, but the earnings profile is unstable. EPS is 9.3 while EPS next year is estimated at $1.74, implying a dramatic earnings compression that the simple P/E does not fully reflect, and the absence of a Forward P/E reinforces the visibility problem. The PEG ratio of 1 suggests “fair value” relative to growth, yet there is no listed sales growth next year to justify confidence in that figure. Financially, the balance sheet is rock solid with an Altman Z-Score of 7.5 and a Current Ratio of 3.5, so bankruptcy risk is remote; this is not a solvency story, it is an earnings durability story, and the market appears to be discounting cyclicality rather than distress.

AI Exposure / Tech Reliance

As a Residential Construction company in the Consumer Cyclical sector, LEGH’s AI exposure is indirect rather than transformational. Technology adoption would likely center on design efficiency, cost estimation, and supply chain optimization rather than product disruption. That makes it operationally improvable, but not structurally advantaged by AI in the way a software or semiconductor company would be.

The Bull Case

A disciplined value or GARP investor could argue this is a balance-sheet-protected cyclical trading at reasonable multiples. A Price/Book of 1 combined with a 7.90% operating margin and 7.90% ROIC suggests the company is generating returns above capital costs while being valued roughly at its accounting equity. The Altman Z-Score of 7.5 and modest Debt/Equity of 29.40% materially reduce downside risk, and the Current Ratio of 3.5 provides liquidity cushion in a downturn. Even with a Piotroski F-Score of 4 signaling neutrality rather than strength, the lack of dividend obligations (TTM Yield 0, Dividend 5-Year Avg 0) preserves capital for reinvestment or balance sheet defense, making this a potentially asymmetric setup if earnings stabilize above the $1.74 forward estimate.

The Bear Case

The bear case is straightforward: earnings quality and visibility are weak. EPS of 9.3 collapsing to an estimated $1.74 next year is not a mild slowdown; it signals extreme cyclicality or one-off distortions, and with no listed sales growth next year, revenue momentum is questionable. A PEG of 1 is meaningless without confirmed growth, and the absence of metrics such as Return on Equity or Forward P/E further clouds profitability sustainability. Add a middling Piotroski F-Score of 4 and you have a company that is financially safe but operationally unconvincing, potentially a classic value trap in a late-cycle Consumer Cyclical industry.

Market Sentiment & Smart Money

Short Interest %

8.60%

Analyst Consensus

2

Average Analyst Price Target

$25.67

Institutional Ownership %

42.00%

1-Year Beta

0.71

Insider Buying % (6 Mo)

63.50%%

Distance to 52-Week High

71.70%

Distance to 52-Week Low

115.40%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.