LEGHLegacy Housing Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.0×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
Margin-driven, fat margins on slower asset turns. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LEGH?
Legacy Housing Corporation earns 8.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.28 points below what the capital costs: growth destroys value
- Operating margin
- 33%
Operating margin · Residential Construction median 9.3% · 12 months to Q2 2026
- Cash conversion
- 1.01×
Cash conversion · 0.68× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 27% |
| FY2021 | 30% |
| FY2022 | 30% |
| FY2023 | 34% |
| FY2024 | 35% |
| FY2025 | 29% |
Details›
- Gross margin12 months to Q2 2026
- 50%
- Operating margin12 months to Q2 2026
- 33%
- Net margin12 months to Q2 2026
- 29%
- Free cash flow margin
- 22%
- Revenue, trailing twelve months
- $179M
- Free cash flow, trailing twelve months
- $39M
- Net income, trailing twelve months
- $51M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Residential Construction
Ranks #9 of 13 by RyuScore