Stock fact sheet · data as of
Legacy Housing Corporation (LEGH): fair value, margin of safety and Wheel Score
Consumer Cyclical · Residential Construction · United States · Value
Is LEGH undervalued?
Legacy Housing Corporation (LEGH) closed at 27.24 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 45.55, which puts the price 40% below it. 5 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 8 models disagree widely: Lynch gives 8.62 while GLS Growth gives 131.92. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files LEGH under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for LEGH
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 23.75 | -13% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 33.86 | +24% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 34.77 | +28% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 8.62 | -68% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 131.92 | +384% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 43.28 | +59% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 64.24 | +136% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 23.94 | -12% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 4.75 | -83% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 29.50 | +8% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - LEGH passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.6 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 7.9%, ROE 7.9%, ROA 7.2% - with debt at 0.00 times equity and a free-cash-flow yield of 6.0%.
Legacy Housing Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Commercial Sales 54%, Retail Store Sales 27%, Product and Service, Other 14% (quarter Q2 FY2026).
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 7.9% |
|---|---|---|---|
| GLS Moat | 4.6 / 10 | ROE | 7.9% |
| Debt / equity | 0.00 | ROA | 7.2% |
| Free-cash-flow yield | 6.0% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 72: Good
LEGH scores 72 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (7/15), the option premium on offer (20/20) and how easily the stock trades (7/20). Stability (7/20) is the part holding the score back.
Implied volatility is 61% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 121 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 57k shares a day on a market cap of $648M, with a beta of 0.75 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 7 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 40% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 7 / 15 | moat 4.6/10 | |
| Premium | 20 / 20 | implied volatility 61% | |
| Stability | 7 / 20 | 57k shares/day, $648M cap, beta 0.75 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 6 Nov 2026, 21 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Residential Construction
The 12 companies below are the closest to Legacy Housing Corporation by market cap within the Residential Construction industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DFH Dream Finders Homes, Inc. | 8.44 | 19.15 | +56% | 72Good | $767M |
| HOV Hovnanian Enterprises, Inc. | 100.93 | 156.95 | +36% | 39No options | $517M |
| HOVVB Hovnanian Enterprises, Inc. | 97.00 | 157.26 | +38% | 39No options | $517M |
| BZH Beazer Homes USA, Inc. | 33.41 | 25.56 | -31% | 45Weak | $891M |
| LGIH LGI Homes, Inc. | 44.08 | 92.94 | +53% | 72Good | $1.0B |
| CCS Century Communities, Inc. | 55.55 | 55.18 | -1% | 59Fair | $1.6B |
| HOVNP Hovnanian Enterprises, Inc. PFD DEP1/1000A | 16.85 | 130.60 | +87% | 39No options | $2.5B |
| VNJA Vanjia Corporation | 5.50 | 0.0021 | -263525% | 11No options | $165M |
| KBH KB Home | 43.65 | 62.28 | +30% | 80Prime | $2.7B |
| GRBK Green Brick Partners, Inc. | 61.98 | 91.90 | +33% | 79Good | $2.7B |
| MHO M/I Homes, Inc. | 126.02 | 176.77 | +29% | 76Good | $3.2B |
| MTH Meritage Homes Corporation | 60.28 | 101.28 | +40% | 80Prime | $3.9B |
⚖ Compare LEGH with 7 of them All Consumer Cyclical stocks →
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Start free See the Sunday ScanQuestions about LEGH
Is LEGH undervalued right now?
By the GLS models, yes: at 27.24 the stock is 40% below the average fair value of 45.55 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of LEGH and what does it mean?
LEGH scores 72 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for LEGH?
45.55 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Legacy Housing Corporation report earnings next?
The next earnings report is due on 6 Nov 2026, 21 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LEGH have listed options, and how liquid are they?
Yes. The nightly snapshot found 124 listed contracts with 121 open interest across all expiries and implied volatility of 61% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.