# Legacy Housing (LEGH.US)

Canonical: https://gigainvestors.com/s/LEGH

Analysis as of: 2026-10-16T07:29:47.304Z. Financial observations: FY2016–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $27.24 per share; close as of 2026-10-15.

Estimated value: low $22.20 per share, central $25.12 per share, high $29.00 per share. Buy at or below the central value $25.12 per share. Valuation as of 2026-10-16T07:29:47.304Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.22×

- FY2018: 0.20×

- FY2019: 0.22×

- FY2020: 0.27×

- FY2021: 0.30×

- FY2022: 0.30×

- FY2023: 0.34×

- FY2024: 0.35×

- FY2025: 0.29×

- LTM to Jun 2026: 0.33×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.4%

- ROIC, second-lowest year: 9.4%

- Typical minus recent gross margin: -7.5 pp

- Typical gross margin (annual median): 41.9%

- Recent gross margin (lower of latest and 3-year median): 49.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.4%

- ROIC including acquisitions, ten-year median: 10.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 15.3%

- FY2018: 11.3%

- FY2019: 11.5%

- FY2020: 12.0%

- FY2021: 15.3%

- FY2022: 19.4%

- FY2023: 11.1%

- FY2024: 10.4%

- FY2025: 7.5%

- LTM to Jun 2026: 9.4%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $254M

- Net income, five-year total: $276M

- Return on incremental invested capital: 14.6%

- Working capital / revenue, annual change: 4.5 pp

- Working capital / revenue, change between three-year averages: 31.1 pp

- Working capital / revenue, final three-year average: 67.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.97×

- FY2022: 1.00×

- FY2023: 0.89×

- FY2024: 0.88×

- FY2025: 0.83×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 11.4% vs 10.4%

- Per-share earnings: 1.07 to 2.17 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: $178M

- Cumulative retained earnings: $342M

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.7%

- Per-share value change: $1.11

- Per-share value, starting three-year median: $1.07

- Per-share value, ending three-year median: $2.17

- Buybacks concentrated in cheaper years (correlation): 0.30

- Average buyback yield: 1.1%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: $408M

- ROIC, first three-year median: 11.4%

- ROIC, last three-year median: 10.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.87

- FY2017: $1.10

- FY2018: $1.07

- FY2019: $1.18

- FY2020: $1.57

- FY2021: $2.05

- FY2022: $2.74

- FY2023: $2.17

- FY2024: $2.48

- FY2025: $1.74

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: 0.8%

- Receivables to sales index (DSRI): 1.54×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.89×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 10.7%

- FY2017: 10.4%

- FY2018: 8.0%

- FY2019: 11.6%

- FY2020: 11.8%

- FY2021: -2.8%

- FY2022: 18.9%

- FY2023: 13.4%

- FY2024: 4.8%

- FY2025: 0.8%

## Holders

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 2% a year for ten years · sales +9%

Story as of 2026-10-16T09:59:03.609Z; price observation 2026-10-15.

Price needs cash profits to grow 2% a year for ten years

### Sales · FY2025–2026

sales +9%; source https://www.sec.gov/Archives/edgar/data/1436208/000110465926027133/legh-20251231x10k.htm; observed 2026-03-12.

- FY2017: $129M 

- FY2018: $162M 

- FY2019: $169M 

- FY2020: $177M 

- FY2021: $198M 

- FY2022: $257M 

- FY2023: $189M 

- FY2024: $184M 

- FY2025: $165M 

- FY2026: $179M 

### Gross margin · FY2026

gross margin 49.4%; source https://www.sec.gov/Archives/edgar/data/1436208/000110465926027133/legh-20251231x10k.htm; observed 2026-03-12.

- FY2017: 35.9% 

- FY2018: 33.8% 

- FY2019: 37.9% 

- FY2020: 37.9% 

- FY2021: 42.3% 

- FY2022: 41.6% 

- FY2023: 47.3% 

- FY2024: 51.1% 

- FY2025: 47.4% 

- FY2026: 49.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in residential construction; annual sales are USD 164.6 million.

- Source: https://www.sec.gov/Archives/edgar/data/1436208/000110465926027133/legh-20251231x10k.htm (filed 2026-03-12); FY2025: revenue 164567000; grossProfit 78015000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); LEGH.US: Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. The company manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. It also provides inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. The company is involved in financing and developing new manufactured home communities. It markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. The company was founded in 2005 and is headquartered in Bedford, Texas.

### Why customers stay

Margins ranged from 47.3% to 51.1% during 2023–25; it earns 11.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2023: grossProfit / revenue = 47.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2024: grossProfit / revenue = 51.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1436208/000110465926027133/legh-20251231x10k.htm (filed 2026-03-12); FY2025: grossProfit / revenue = 47.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); 10-year return on capital observations [[2017,0.1531208968866493],[2018,0.11269215596475603],[2019,0.11543869394929762],[2020,0.11969812431780259],[2021,0.1531984167171644],[2022,0.19411641957638995],[2023,0.1108709724996577],[2024,0.10434365709621612],[2025,0.07544694372591455],[2026,0.09365944275393004]]; median 0.11406542495702682. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 54.8% of cash earnings; earns 14.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2016: growth capex 0; upkeep 2167000; owner earnings 15748000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2017: growth capex 776000; upkeep 652000; owner earnings 26348000. Growth capex / owner earnings = 0.02945195081220586.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2018: growth capex 3303512.8870183965; upkeep 2833487.1129816035; owner earnings 19517512.887018397. Growth capex / owner earnings = 0.16925890640582839.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2019: growth capex 771245.0339816292; upkeep 3434754.966018371; owner earnings 26423245.03398163. Growth capex / owner earnings = 0.029188127082414334.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2020: growth capex 939322.286436263; upkeep 1905677.713563737; owner earnings 37301322.28643626. Growth capex / owner earnings = 0.02518201041837665.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2021: growth capex 2869075.1524812137; upkeep 3082924.8475187863; owner earnings 48375075.15248121. Growth capex / owner earnings = 0.05930895494090112.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2022: growth capex 2019000; upkeep 1781000; owner earnings 67773000. Growth capex / owner earnings = 0.02979062458501173.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2023: growth capex 0; upkeep 7713000; owner earnings 48473000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2024: growth capex 0; upkeep 9212000; owner earnings 54336000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1436208/000110465926027133/legh-20251231x10k.htm (filed 2026-03-12); FY2025: growth capex 0; upkeep 9001000; cash acquisitions 19001000; owner earnings 34664000. Growth capex plus acquisitions / owner earnings = 0.5481479344564967.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); Incremental return on capital 0.14551314054090103, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); Dividend observations: [[2016,6905000],[2017,17668000],[2018,0],[2019,65686000],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1436208/000110465926027133/legh-20251231x10k.htm (filed 2026-03-12); FY2025: cash repurchases 7609000 USD.

### Are managers owners

Insiders own 63.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); LEGH.US SharesStats.PercentInsiders = 63.568999999999996 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits grow 2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); Ten-year compound average after fade. Initial solved rate 0.015075888171813934. Price 27.24; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-12: $11.93 per share

- 2019-01: $14.00 per share

- 2019-02: $14.05 per share

- 2019-03: $11.90 per share

- 2019-04: $12.13 per share

- 2019-05: $12.92 per share

- 2019-06: $12.45 per share

- 2019-07: $12.59 per share

- 2019-08: $14.77 per share

- 2019-09: $16.20 per share

- 2019-10: $15.85 per share

- 2019-11: $16.02 per share

- 2019-12: $16.64 per share

- 2020-01: $14.03 per share

- 2020-02: $14.37 per share

- 2020-03: $9.25 per share

- 2020-04: $9.78 per share

- 2020-05: $13.01 per share

- 2020-06: $14.22 per share

- 2020-07: $13.74 per share

- 2020-08: $15.27 per share

- 2020-09: $13.68 per share

- 2020-10: $13.61 per share

- 2020-11: $14.90 per share

- 2020-12: $15.11 per share

- 2021-01: $14.17 per share

- 2021-02: $15.71 per share

- 2021-03: $17.73 per share

- 2021-04: $17.86 per share

- 2021-05: $19.04 per share

- 2021-06: $16.91 per share

- 2021-07: $17.64 per share

- 2021-08: $19.60 per share

- 2021-09: $17.97 per share

- 2021-10: $17.75 per share

- 2021-11: $24.97 per share

- 2021-12: $26.47 per share

- 2022-01: $24.76 per share

- 2022-02: $25.47 per share

- 2022-03: $21.46 per share

- 2022-04: $17.52 per share

- 2022-05: $15.66 per share

- 2022-06: $13.05 per share

- 2022-07: $13.58 per share

- 2022-08: $17.09 per share

- 2022-09: $17.15 per share

- 2022-10: $18.56 per share

- 2022-11: $17.52 per share

- 2022-12: $18.96 per share

- 2023-01: $20.02 per share

- 2023-02: $19.96 per share

- 2023-03: $22.76 per share

- 2023-04: $21.60 per share

- 2023-05: $19.04 per share

- 2023-06: $23.19 per share

- 2023-07: $23.72 per share

- 2023-08: $22.67 per share

- 2023-09: $19.41 per share

- 2023-10: $18.51 per share

- 2023-11: $22.40 per share

- 2023-12: $25.22 per share

- 2024-01: $23.63 per share

- 2024-02: $25.72 per share

- 2024-03: $21.52 per share

- 2024-04: $20.37 per share

- 2024-05: $23.23 per share

- 2024-06: $22.94 per share

- 2024-07: $28.48 per share

- 2024-08: $26.96 per share

- 2024-09: $27.35 per share

- 2024-10: $24.80 per share

- 2024-11: $26.17 per share

- 2024-12: $24.68 per share

- 2025-01: $25.65 per share

- 2025-02: $24.69 per share

- 2025-03: $25.22 per share

- 2025-04: $24.33 per share

- 2025-05: $22.29 per share

- 2025-06: $22.66 per share

- 2025-07: $22.38 per share

- 2025-08: $27.95 per share

- 2025-09: $27.51 per share

- 2025-10: $22.46 per share

- 2025-11: $19.93 per share

- 2025-12: $19.52 per share

- 2026-01: $20.75 per share

- 2026-02: $21.92 per share

- 2026-03: $20.43 per share

- 2026-04: $21.75 per share

- 2026-05: $24.01 per share

- 2026-06: $26.27 per share

- 2026-07: $26.26 per share

- 2026-08: $28.13 per share

- 2026-09: $28.67 per share

- 2026-10: $27.24 per share

## Annual estimated value (USD per share)

- FY2020: low $12.46 per share, central $14.18 per share, high $16.47 per share

- FY2021: low $18.20 per share, central $20.71 per share, high $24.05 per share

- FY2022: low $23.96 per share, central $27.27 per share, high $31.67 per share

- FY2023: low $20.20 per share, central $22.98 per share, high $26.69 per share

- FY2024: low $20.76 per share, central $23.62 per share, high $27.43 per share

- FY2025: low $19.44 per share, central $22.09 per share, high $25.62 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1436208/000110465926027133/legh-20251231x10k.htm); period 2025-12-31, filed 2026-03-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.