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Legacy Housing (Legacy Housing) Piotroski F-Score : 3 (As of May. 01, 2024)


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What is Legacy Housing Piotroski F-Score?

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Legacy Housing has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Legacy Housing's Piotroski F-Score or its related term are showing as below:

LEGH' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 7
Current: 3

During the past 8 years, the highest Piotroski F-Score of Legacy Housing was 7. The lowest was 3. And the median was 5.


Legacy Housing Piotroski F-Score Historical Data

The historical data trend for Legacy Housing's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Legacy Housing Piotroski F-Score Chart

Legacy Housing Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial 4.00 5.00 7.00 5.00 3.00

Legacy Housing Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 4.00 3.00 3.00 3.00

Competitive Comparison of Legacy Housing's Piotroski F-Score

For the Residential Construction subindustry, Legacy Housing's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Legacy Housing's Piotroski F-Score Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Legacy Housing's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Legacy Housing's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 16.276 + 15.02 + 16.088 + 7.076 = $54.5 Mil.
Cash Flow from Operations was -2.691 + -4.773 + 2.18 + -8.252 = $-13.5 Mil.
Revenue was 52.857 + 52.636 + 49.937 + 33.714 = $189.1 Mil.
Gross Profit was 23.897 + 22.927 + 25.117 + 17.512 = $89.5 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(436.813 + 454.951 + 465.779 + 495.643 + 506.742) / 5 = $471.9856 Mil.
Total Assets at the begining of this year (Dec22) was $436.8 Mil.
Long-Term Debt & Capital Lease Obligation was $25.1 Mil.
Total Current Assets was $107.9 Mil.
Total Current Liabilities was $37.3 Mil.
Net Income was 16.092 + 17.261 + 14.735 + 19.685 = $67.8 Mil.

Revenue was 59.928 + 64.211 + 57.325 + 75.551 = $257.0 Mil.
Gross Profit was 26.201 + 26.8 + 23.815 + 30.085 = $106.9 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(366.667 + 390.667 + 413.029 + 418.165 + 436.813) / 5 = $405.0682 Mil.
Total Assets at the begining of last year (Dec21) was $366.7 Mil.
Long-Term Debt & Capital Lease Obligation was $4.7 Mil.
Total Current Assets was $107.1 Mil.
Total Current Liabilities was $41.5 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Legacy Housing's current Net Income (TTM) was 54.5. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Legacy Housing's current Cash Flow from Operations (TTM) was -13.5. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=54.46/436.813
=0.12467578

ROA (Last Year)=Net Income/Total Assets (Dec21)
=67.773/366.667
=0.18483529

Legacy Housing's return on assets of this year was 0.12467578. Legacy Housing's return on assets of last year was 0.18483529. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Legacy Housing's current Net Income (TTM) was 54.5. Legacy Housing's current Cash Flow from Operations (TTM) was -13.5. ==> -13.5 <= 54.5 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=25.076/471.9856
=0.05312874

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=4.666/405.0682
=0.01151905

Legacy Housing's gearing of this year was 0.05312874. Legacy Housing's gearing of last year was 0.01151905. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=107.884/37.333
=2.8897758

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=107.081/41.462
=2.58262988

Legacy Housing's current ratio of this year was 2.8897758. Legacy Housing's current ratio of last year was 2.58262988. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Legacy Housing's number of shares in issue this year was 24.983. Legacy Housing's number of shares in issue last year was 24.361. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=89.453/189.144
=0.47293596

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=106.901/257.015
=0.41593292

Legacy Housing's gross margin of this year was 0.47293596. Legacy Housing's gross margin of last year was 0.41593292. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=189.144/436.813
=0.43300909

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=257.015/366.667
=0.70094936

Legacy Housing's asset turnover of this year was 0.43300909. Legacy Housing's asset turnover of last year was 0.70094936. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+0+0+0+0+1+0+1+0
=3

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Legacy Housing has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

Legacy Housing  (NAS:LEGH) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Legacy Housing Piotroski F-Score Related Terms

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Legacy Housing (Legacy Housing) Business Description

Traded in Other Exchanges
N/A
Address
1600 Airport Freeway, Suite No. 100, Bedford, TX, USA, 76022
Legacy Housing Corp builds, sell, and finance manufactured homes and tiny houses that are distributed through a network of independent retailers and company-owned stores and also sold directly to manufactured home communities. The company also provides financing options to customers to facilitate the sale of homes.
Executives
Curtis Drew Hodgson director, 10 percent owner, officer: Co-Chief Executive Officer 15400 KNOLL TRAIL STE 101 LB 25, DALLAS TX 75248
Kenneth E Shipley director, 10 percent owner, officer: Co-Chief Executive Officer PO BOX 749, LEVELLAND TX 79336
William G Shipley 10 percent owner C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Robert Duncan Bates director C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Douglas M Shipley 10 percent owner PO BOX 749, LEVELLAND TX 79336
Jeffrey Mark Fiedelman officer: CFO 7026 BAXTERSHIRE DRIVE, DALLAS TX 75230
Jeffrey V Burt officer: CFO and Treasurer C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Francisco Javier Coll director C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Ronald Carter Arrington officer: CFO C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Joseph Phillip Lane director C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Jeffrey Kyle Stouder director C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Stephen Lynn Crawford director C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Neal J Suit officer: Exec VP, GC and Secretary C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Mark E Bennett director C/O LEGACY HOUSING CORPORATION, 1600 AIRPORT FREEWAY, #100, BEDFORD TX 76022
Philip Thomas Blazek director 500 CRESCENT COURT, SUITE 230, DALLAS TX 75201

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