Legacy Housing Intrinsic Value – LEGACY HOUSING Reports Second Quarter Financial Results for Fiscal Year 2023
August 13, 2023
🌥️Earnings Overview
Legacy Housing ($NASDAQ:LEGH) Corporation reported its financial results for the quarter ending August 9, 2023, on June 30, 2023. Total revenue for the quarter was USD 52.6 million, representing a year-over-year decrease of 18.0%. Net income for the quarter was USD 15.0 million, a decrease of 13.0% from the same period in the prior year.
Stock Price
On Wednesday, LEGACY HOUSING reported its second quarter financial results for fiscal year 2023. The report showed that LEGACY HOUSING stock opened at 22.5 and closed at 22.3, a decrease of 0.8% from the last closing price of 22.5. The decline in share price comes despite a strong sales performance, as LEGACY HOUSING saw increases in net sales and gross profit compared to the same period last year.
In addition, LEGACY HOUSING reported a higher operating income for the quarter compared to the same period last year, as well as an increase in net income for the quarter. The company also reported a healthy balance sheet position with sufficient cash reserves and total assets in excess of total liabilities. This is a positive sign for the company as they continue to focus on delivering quality housing products to their customers. Investors will be watching closely to see how the company’s performance continues to develop throughout the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Legacy Housing. More…
| Total Revenues | Net Income | Net Margin |
| 238.37 | 65.72 | 27.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Legacy Housing. More…
| Operations | Investing | Financing |
| -5.2 | 2.95 | -10.48 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Legacy Housing. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 465.78 | 52.59 | 16.94 |
Key Ratios Snapshot
Some of the financial key ratios for Legacy Housing are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.0% | 24.7% | 33.4% |
| FCF Margin | ROE | ROA |
| -3.8% | 12.3% | 10.7% |
Analysis – Legacy Housing Intrinsic Value
At GoodWhale, we have conducted an analysis of LEGACY HOUSING‘s fundamentals. Our proprietary Valuation Line indicated that the intrinsic value of the LEGACY HOUSING share is around $21.0. Currently, LEGACY HOUSING stock is being traded at $22.3, which implies a fair price that is slightly overvalued by 6.0%. More…
Peers
The company offers a variety of housing products, including single- and multi-section homes, and modular homes. The company sells its homes through a network of dealers and retailers in the United States. Legacy Housing Corp competes with Taylor Morrison Home Corp, Nobility Homes Inc, and Skyline Champion Corp.
– Taylor Morrison Home Corp ($NYSE:TMHC)
Taylor Morrison Home Corp is a homebuilder and land developer with operations in the United States and Canada. The company is engaged in the design, construction, and sale of single-family detached and attached homes, as well as the development of communities. It also provides mortgage financing, title insurance, and closing services for homebuyers. As of December 31, 2020, the company operated in 27 states and 30 markets.
– Nobility Homes Inc ($OTCPK:NOBH)
Nobility Homes Inc is a homebuilder based in Ocala, Florida. The company has a market cap of 84.27M as of 2022 and a Return on Equity of 9.71%. Nobility Homes builds and sells a variety of homes, including single-family homes, multi-family homes, and vacation homes. The company has a long history of success, with a strong reputation for quality and customer satisfaction.
– Skyline Champion Corp ($NYSE:SKY)
Skyline Champion Corp is a leading manufacturer of factory-built housing in North America. The company has a strong market position in the United States and Canada, with a diversified product mix that includes a broad range of housing types and price points. The company’s products are marketed under a variety of brand names, includingSkyline, Champion, Palm Harbor Homes, and Oakwood Homes. Skyline Champion has a long history of providing quality homes and outstanding customer service, and is committed to continued innovation and growth.
Summary
Legacy Housing reported a decrease in both total revenue and net income for the second quarter of the fiscal year 2023. The total revenue was USD 52.6 million, down 18.0% from the same period last year. Net income was USD 15.0 million, down 13.0% year over year.
Investors should consider these results carefully before investing in Legacy Housing as the company appears to be facing a challenging market environment. It is also important to consider the company’s long-term prospects and potential for future growth as well as the financial risks associated with investing in Legacy Housing.
