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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Legacy HousingLEGH +0.79%75 Operating Margin % is 39.88% as of Jun. 2026, which is 42% above its 10-year median of 28.17. GuruFocus rates LEGH with a GF Score™ of 75/100 and a GF Value™ of $25.33 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 90 Homebuilding & Construction companies, Legacy Housing ranks better than 98.89% on this metric.
Legacy Housing Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Legacy Housing's Operating Margin % or its related term are showing as below:
LEGH'
s Operating Margin % Range Over the Past 10 Years
Min: 16.67 Med: 28.17 Max: 34.53
Current: 32.79
LEGH's Operating Margin % is ranked better than 98.89% of 90
companies
in the Homebuilding & Construction industry
Industry Median: 7.26
vs LEGH: 32.79
Legacy Housing's 5-Year Average Operating Margin % Growth Rate was 2.90% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Legacy Housing Operating Margin % Related Terms
Legacy Housing Operating Margin % Historical Data
* Premium members only.
The historical data trend for Legacy Housing's Operating Margin % 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.
LEGH vs HOV, BZH, VNJA: Operating Margin % Comparison
For the Residential Construction subindustry, Legacy Housing's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Legacy Housing's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Legacy Housing's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Legacy Housing's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Legacy Housing (LEGH) has a Operating Margin % of 39.88% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Legacy Housing and its competitors. This is 42% above median its historical median of 28.17. Over the past decade, Legacy Housing's Operating Margin % has ranged from 16.67 to 34.53. According to the industry distribution chart, Legacy Housing ranks #1 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 1.1%.
Is Legacy Housing's Operating Margin % too high?
Legacy Housing's current Operating Margin % of 39.88% is 42% above median its 10-year median of 28.17. Over the past 10 years, this metric has ranged from a low of 16.67 to a high of 34.53. The Homebuilding & Construction industry median Operating Margin % is 7.26. Legacy Housing's value of 39.88% is 449.3% above this industry median. Based on the distribution chart, Legacy Housing ranks #1 out of 90 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Legacy Housing has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Legacy Housing's Operating Margin % compare to HOV and BZH?
According to the Homebuilding & Construction industry distribution chart, Legacy Housing ranks #1 out of 90 companies for Operating Margin %. This places Legacy Housing in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.26. Legacy Housing's value of 39.88% is 449.3% above this benchmark. Historically, Legacy Housing's own Operating Margin % has ranged from 16.67 to 34.53 over the past decade. While the company's 10-year median is 28.17 vs. the industry median of 7.26, Legacy Housing has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Homebuilding & Construction company?
The median Operating Margin % among Homebuilding & Construction companies is 7.26, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Legacy Housing's current Operating Margin % of 39.88% is 449.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Legacy Housing and its competitors. For the Homebuilding & Construction industry, the median Operating Margin % is 7.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Legacy Housing's current Operating Margin % is 39.88%, which is 42% above median its own 10-year median of 28.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legacy Housing stock overvalued right now?
Based on GuruFocus' analysis, Legacy Housing (LEGH) is currently considered Modestly Overvalued. The stock's GF Value™ is $25.33, compared to a current price of $29.34 — trading 15.8% above its estimated fair value. The current Operating Margin % is 39.88%, which is 42% above median its 10-year median of 28.17 and 449.3% above the Homebuilding & Construction industry median of 7.26. Legacy Housing's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Legacy Housing (LEGH), the current Operating Margin % is 39.88% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Legacy Housing (LEGH) Overvalued in 2026?
Based on GuruFocus' analysis, Legacy Housing stock appears to be overvalued.
The current stock price of $29.34 is trading 15.8% above its estimated GF Value™ of $25.33.
GuruFocus considers Legacy Housing to be Modestly Overvalued.
Key valuation signals for LEGH:
Operating Margin %: 39.88% (42% above median its 10-year median of 28.17)
GF Value™: $25.33 vs. price of $29.34 (15.8% above fair value)
Industry Position: 449.3% above the Homebuilding & Construction median (#1 of 90)
No single metric tells the full story. See the LEGH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Legacy Housing Corp builds, sells, and finances manufactured homes and tiny houses that are distributed through a network of independent retailers and company-owned stores, and are also sold directly to manufactured home communities. The Company manufactures and provides for the transport of manufactured homes, provides wholesale financing to dealers and mobile home parks, provides retail financing to consumers, and is involved in financing and developing new manufactured home communities. The Company manufactures its mobile homes at plants in Fort Worth, Texas; Commerce, Texas; and Eatonton, Georgia. The Company also sells homes directly to consumers, through its own retail stores, and to dealers and mobile home parks.
75GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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