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1. Company Snapshot

1.a. Company Description

Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny houses primarily in the southern United States.The company manufactures and provides for the transport of mobile homes; and offers wholesale financing to dealers and mobile home parks, as well as a range of homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms.It also provides floor plan financing for independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy its products for use in their rental housing communities.


In addition, it involved in financing and developing new manufactured home communities; and retail financing to consumers.The company markets its homes under the Legacy brand through a network of 176 independent and 13 company-owned retail locations, as well as direct sales to owners of manufactured home communities in 15 states in the United States.Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.

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1.b. Last Insights on LEGH

Legacy Housing Corporation's recent performance was driven by its solid Q2 2025 financial results, announced on August 7, 2025. The company's earnings call on August 8, 2025, likely provided investors with a positive outlook. With a strong value proposition in the affordable tiny and manufactured homes niche, Legacy Housing is well-positioned for long-term growth. Its low debt profile and solid profitability, partly due to land sales, are key strengths. A recent analysis by an unnamed source views the company as poised for upside in an eventual economic recovery.

1.c. Company Highlights

2. Legacy Housing Corporation's Q3 2025 Earnings: A Mixed Bag

Legacy Housing Corporation reported a mixed financial performance in the third quarter of 2025, with home sales decreasing by $1.4 million or 4.8% compared to the same period last year, primarily due to a decline in sales to mobile home park customers and independent dealers. However, net revenue per unit increased by 8% to $68,500. The company's net income decreased by $7.2 million or 45.3% to $8.6 million, with a net income margin of 21.4%, down from 35.7% in the same period last year. The actual EPS came out at $0.35, lower than the estimated $0.57.

Publication Date: Nov -30

📋 Highlights
  • Senior Leadership Turnover:: Departures of CEO, CFO, and General Counsel, with Ron Arrington appointed as Interim CFO.
  • Home Sales Decline:: Sales down $1.4M (4.8%) QoQ, yet net revenue per unit rose 8% to $68,500.
  • Net Income Drop:: Net income fell $7.2M (45.3%) to $8.6M, with margin shrinking to 21.4% from 35.7%.
  • AmeriCasa Acquisition:: Portfolio of $10.8M mobile home notes at 16% interest, plus a Houston dealership and FutureHomeX platform.
  • Balance Sheet Strength:: Ended Q3 with $13.6M cash, 9.5% ROE over 4Qs, and book value per share up $1.90 to $21.85.

Revenue and Margin Analysis

The company's consumer loan portfolio grew by $21.4 million over the last 12 months, and consumer MHP and dealer loan interest income increased by 5.4% to $10.9 million. However, other revenue decreased by 63.1% in the 9-month comparison period due to a significant land sale and a reduction in portfolio service revenue. The cost of product sales increased by 7.5% in the third quarter, primarily related to raw material cost and tariffs, resulting in a product gross margin decrease to 20.28%.

Operational Highlights

Curt Hodgson, Co-Founder and Executive Chairman, mentioned that the company held a successful annual show in September, with orders booked that will ensure higher production rates for the fourth quarter. He also discussed the AmeriCasa acquisition, which involves purchasing a portfolio of mobile home notes from Jeff Gainsborough and Norman Newton, carrying interest at over 16% and expected to perform well.

Valuation Metrics

Legacy Housing Corporation's current valuation metrics are as follows: P/E Ratio at 8.67, P/B Ratio at 0.93, P/S Ratio at 2.58, and ROE at 11.11%. With analysts estimating next year's revenue growth at 6.1%, the current valuation appears reasonable, but the recent EPS miss may impact investor sentiment. The company's strong operating margins and consistent profitability, with a loan portfolio expected to deliver $40 million to the bottom line this year, are positives.

Future Outlook

Curtis Hodgson expressed optimism about the acquisition of AmeriCasa, citing the company's remote management technology and sales potential. He expects retail sales to increase by 50-60% in 2026 due to the acquisition, and potentially double if the integration of the Columbia presence and HomeX model is successful. The company's plans to take additional price increases to offset raw material costs and tariffs, and its exploration of other acquisitions, are also positive indicators.

3. NewsRoom

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Head-To-Head Survey: Legacy Housing (NASDAQ:LEGH) & Maui Land & Pineapple (NYSE:MLP)

Nov -15

Source: defenseworld.net

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Legacy Housing Corporation (LEGH) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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Legacy Housing (LEGH) Lags Q3 Earnings and Revenue Estimates

Nov -08

Source: zacks.com

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Legacy Housing Corporation Reports Third Quarter 2025 Financial and Operating Results

Nov -07

Source: globenewswire.com

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Legacy Housing Announces Agreement to Purchase Assets of AmeriCasa Solutions, LLC and Addition of New Senior Management

Nov -07

Source: globenewswire.com

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Legacy Housing Corporation Announces Core Manufacturing & Financing Initiatives, and Leadership Transition

Oct -10

Source: globenewswire.com

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Legacy Housing: More Upside Is Warranted

Sep -06

Source: seekingalpha.com

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Legacy Housing Corporation (LEGH) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.14%)

6. Segments

Mobile Homes - Commercial

Expected Growth: 5%

Legacy Housing Corporation's Mobile Homes - Commercial segment growth is driven by increasing demand for affordable housing, government incentives for manufactured housing, and rising popularity of tiny homes. Additionally, the company's strategic expansion into new markets, cost-effective production, and strong relationships with retailers and distributors contribute to its 5% growth.

Mobile Homes - Inventory Finance

Expected Growth: 4%

Legacy Housing Corporation's 4% growth in Mobile Homes - Inventory Finance is driven by increasing demand for affordable housing, rising consumer confidence, and favorable government policies. Additionally, the company's strategic expansion into new markets, improved operational efficiency, and strong relationships with dealers and manufacturers have contributed to the growth.

Consumer Installment Notes

Expected Growth: 3%

The 3% growth in Consumer Installment Notes from Legacy Housing Corporation is driven by increasing demand for affordable housing, rising consumer confidence, and low unemployment rates. Additionally, the company's expansion into new markets and strategic partnerships have contributed to the growth. Furthermore, the notes' attractive interest rates and flexible repayment terms have appealed to consumers, leading to increased adoption.

Mobile Homes - Retail Store

Expected Growth: 4%

Legacy Housing Corporation's Mobile Homes - Retail Store segment growth is driven by increasing demand for affordable housing, rising popularity of tiny homes, and growing acceptance of mobile homes as a viable housing option. Additionally, the company's strategic expansion into new markets, innovative product offerings, and strong relationships with retailers contribute to its 4% growth.

Mobile Homes - Direct

Expected Growth: 5%

Legacy Housing Corporation's mobile home sales growth is driven by increasing demand for affordable housing, rising popularity of tiny homes, and growing acceptance of manufactured housing as a viable alternative to traditional site-built homes. Additionally, the company's strategic expansion into new markets, innovative product offerings, and strong relationships with retailers and distributors contribute to its growth.

Mobile Home Parks Notes

Expected Growth: 4%

Legacy Housing Corporation's Mobile Home Parks Notes exhibit 4% growth driven by increasing demand for affordable housing, limited supply of mobile home parks, and rising property values. Additionally, the company's strategic acquisitions, efficient operations, and favorable financing terms contribute to its growth momentum.

Mobile Homes - Other

Expected Growth: 3%

Legacy Housing Corporation's Mobile Homes - Other segment growth is driven by increasing demand for affordable housing, government incentives for manufactured housing, and strategic expansion into new markets. Additionally, the company's focus on energy-efficient and eco-friendly homes resonates with environmentally conscious consumers, contributing to its 3% growth.

Other

Expected Growth: 2%

Legacy Housing Corporation's 2% growth is driven by increasing demand for affordable housing, expansion into new markets, and strategic partnerships. Additionally, the company's focus on energy-efficient and eco-friendly homes resonates with environmentally conscious consumers, contributing to its growth momentum.

Dealer Finance Notes

Expected Growth: 3%

Legacy Housing Corporation's 3% growth in Dealer Finance Notes is driven by increasing demand for manufactured housing, expansion into new markets, and strategic partnerships with dealers. Additionally, the company's focus on providing competitive financing options and exceptional customer service has contributed to the growth. Furthermore, the rising popularity of affordable housing solutions and government incentives for manufactured housing have also fueled the segment's growth.

7. Detailed Products

Manufactured Homes

Legacy Housing Corporation offers a wide range of manufactured homes, designed to provide affordable and comfortable living solutions for individuals and families.

Tiny Homes

Legacy Housing Corporation's tiny homes are compact, eco-friendly, and energy-efficient, perfect for those who want to downsize or live off the grid.

Modular Homes

Legacy Housing Corporation's modular homes offer a blend of quality, affordability, and customization, ideal for those seeking a more traditional housing experience.

Park Model Homes

Legacy Housing Corporation's park model homes are designed for recreational use, providing a comfortable and convenient living space for outdoor enthusiasts.

Commercial Buildings

Legacy Housing Corporation offers commercial buildings, including offices, retail spaces, and restaurants, designed to meet the needs of businesses and entrepreneurs.

8. Legacy Housing Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Legacy Housing Corporation is moderate due to the availability of alternative housing options such as apartments and condominiums.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power and the high demand for housing in the area.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the availability of multiple suppliers for building materials and labor.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for housing and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the high competition among existing players in the market and the need to differentiate themselves through quality and pricing.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.24%
Debt Cost 4.59%
Equity Weight 94.76%
Equity Cost 8.66%
WACC 8.45%
Leverage 5.53%

11. Quality Control: Legacy Housing Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dine Brands

A-Score: 5.6/10

Value: 8.8

Growth: 3.3

Quality: 5.1

Yield: 9.0

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Legacy Housing

A-Score: 5.3/10

Value: 6.0

Growth: 5.9

Quality: 7.8

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Hovnanian

A-Score: 3.8/10

Value: 8.6

Growth: 4.6

Quality: 5.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Beazer Homes USA

A-Score: 3.7/10

Value: 7.8

Growth: 3.9

Quality: 3.8

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
LGI Homes

A-Score: 3.4/10

Value: 8.1

Growth: 3.7

Quality: 4.6

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
United Homes

A-Score: 2.5/10

Value: 6.8

Growth: 2.7

Quality: 3.5

Yield: 0.0

Momentum: 1.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.97$

Current Price

19.97$

Potential

-0.00%

Expected Cash-Flows