(LEGH) Legacy Housing - Ratings and Ratios

Legacy Housing Corporation (NASDAQ: LEGH) is a leading manufacturer and financier of manufactured homes and tiny houses, primarily serving the southern United States. Established in 2005 and headquartered in Bedford, Texas, the company specializes in producing a diverse range of homes, from 1 to 5 bedrooms with 1 to 3.5 bathrooms. Legacy Housing not only manufactures these homes but also handles their transportation, making it a one-stop solution for buyers. The company offers various financing options, including wholesale financing for dealers and mobile home parks, retail financing for consumers, and inventory financing for independent retailers. Additionally, Legacy Housing provides financing to manufactured housing community owners, aiding in the development of new communities. Their products are marketed under the Legacy brand through a network of independent retailers and company-owned stores, as well as directly to manufactured home communities.

From a technical perspective, LEGHs stock is currently trading at $24.40, below its 20-day and 50-day moving averages of $26.39 and $25.26, respectively. The 200-day moving average stands at $25.45, indicating a potential downtrend. The Average True Range (ATR) of 0.91 suggests low volatility, which may lead to a sideways movement in the near term.

Fundamentally, Legacy Housing Corporation has a market capitalization of $642.13 million, with a price-to-earnings (P/E) ratio of 12.19, indicating a moderate valuation. The price-to-book (P/B) ratio of 1.37 suggests the stock is fairly valued relative to its book value. The price-to-sales (P/S) ratio of 3.92 is on the higher side, reflecting strong revenue generation. The return on equity (RoE) of 11.31% highlights efficient use of shareholders equity.

Looking ahead, over the next three months, LEGHs stock is expected to face headwinds due to its current position below key moving averages. However, the low ATR may limit significant price swings. The fundamental stability, with moderate P/E and efficient RoE, suggests the stock might experience a sideways trend with potential for slight recovery if market conditions improve.