One-glance verdict
Within fair range
$6.71 our estimate vs market $8.62
Wall Street consensus: $15.20 (126.7% higher than our fair-value estimate)
29% above our estimate
Fundamentals snapshot
Legacy Education Inc.
LGCY · ASE · Consumer Defensive · Education & Training Services
Current price
$8.62
52-week range
$7.94 - $14.70
Market cap
$110.47M
Balance sheet
Healthy
173.30x Strong cushion
Net cash $7.11M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 24.8% last year.
- Reward Returns 19.5% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Forward P/E (17.2x) is higher than trailing (13.1x) - earnings are expected to drop.
What this company does
Legacy Education Inc.
Legacy Education Inc. teaches people career skills like becoming an ultrasound technician or a nurse, mainly through its schools. The money comes from students paying for these courses and degree programs. This is important because it shows how the company makes its income by providing specialized training to individuals looking to enter healthcare and other technical fields.
How the company got here
Legacy Education Inc. was founded in 2009 with the goal of providing accessible and practical education to a diverse range of students. It has since grown by acquiring and operating several vocational and technical colleges across California. These institutions focus on healthcare and other in-demand fields, aiming to equip graduates with the skills needed for immediate employment. The company's journey has been shaped by its commitment to offering specialized training programs designed to meet the evolving needs of both students and the job market.
What it actually does
Legacy Education Inc. operates a network of academic institutions that offer a variety of educational programs. These programs are primarily focused on vocational training and associate's degrees, with a strong emphasis on healthcare-related fields. The company aims to provide students with the practical skills and knowledge necessary to enter specific professions upon graduation. Think of it like a specialized trade school system designed to get people into jobs quickly.
Healthcare Programs
This is the largest part of Legacy Education's business, offering programs like Ultrasound Technician, Cardiac Sonography, Vocational Nursing, and Medical Assisting. These programs train students for roles in hospitals, clinics, and other healthcare settings. Students pay tuition for these courses, which are designed to lead directly to certifications or associate's degrees recognized by employers. This segment forms the core of the company's revenue, serving a consistent demand for skilled healthcare professionals.
Other Vocational Programs
Beyond healthcare, Legacy Education also provides training in other vocational areas such as Computer Specialist and Accounting. These programs are geared towards equipping individuals with skills for administrative and technical roles in various industries. While smaller than the healthcare offerings, these programs diversify the company's educational portfolio and cater to a broader student base seeking career advancement or a change. The revenue from these programs contributes to the overall financial health of the company.
What management is betting on now
Legacy Education's management is focused on expanding its reach and enhancing its program offerings, particularly in high-demand sectors like healthcare. They are likely investing in curriculum development to ensure programs remain relevant and competitive, and potentially exploring new campus locations or online learning options. The strategy centers on attracting students seeking practical, career-oriented education and ensuring they graduate with employable skills, thereby driving enrollment and revenue growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$2.95M
FY2025 Q2
$466.77K
FY2025 Q3
$596.63K
FY2025 Q4
$2.91M
FY2026 Q1
$809.66K
FY2026 Q2
$512.71K
FY2026 Q3
$515.77K
FY2026 Q4
$843.00K
Revenue
$20.10M
Net income
$1.88M
Diluted EPS
0.13
Operating cash flow
$1.15M
Free cash flow
$843.00K
Fetching…
Sources
Revenue
$21.37M
Net income
$3.03M
Diluted EPS
0.22
Operating cash flow
$764.36K
Free cash flow
$515.77K
Fetching…
Sources
Revenue
$19.18M
Net income
$2.04M
Diluted EPS
0.15
Operating cash flow
$1.06M
Free cash flow
$512.71K
Fetching…
Sources
Revenue
$19.40M
Net income
$2.19M
Diluted EPS
0.16
Operating cash flow
$1.06M
Free cash flow
$809.66K
Fetching…
Sources
Revenue
$17.95M
Net income
$1.23M
Diluted EPS
0.07
Operating cash flow
$3.01M
Free cash flow
$2.91M
Fetching…
Sources
Revenue
$18.58M
Net income
$2.82M
Diluted EPS
0.21
Operating cash flow
$918.70K
Free cash flow
$596.63K
Fetching…
Sources
Revenue
$13.64M
Net income
$1.40M
Diluted EPS
0.10
Operating cash flow
$659.05K
Free cash flow
$466.77K
Fetching…
Sources
Revenue
$14.01M
Net income
$2.09M
Diluted EPS
0.21
Operating cash flow
$3.19M
Free cash flow
$2.95M
Fetching…
Sources
Is it cheap or expensive?
Fair value $6.71 vs current price $8.62
Wall Street consensus is the average analyst price target: $15.20 (126.7% higher than our fair-value estimate).
Our most-likely fair value is $6.71 a share — about 22.2% away from today's price of $8.62, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $7.1M - more cash than debt. Interest coverage 173.3x.
Net debt
$-7.11M
Interest coverage
173.30x
Legacy Education Inc.'s profit covers its interest bill about 173.3 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
LGCY
BASELINE
Legacy Education Inc.
Total debt $15.62M Interest coverage 173.30x This is the baseline the peer rows are being compared against.
Total debt $110.28M Interest coverage 34.88x -80% vs LGCY Carries about 5.0x less debt cushion than LGCY.
Total debt $619.04M Interest coverage 38.27x -78% vs LGCY Carries about 4.5x less debt cushion than LGCY.
Total debt $228.10M Interest coverage 8.54x -95% vs LGCY Carries about 20.3x less debt cushion than LGCY.
Total debt $0.00 Interest coverage 21.99x -87% vs LGCY Carries about 7.9x less debt cushion than LGCY.
What you should know
The case for and against LGCY
3 Rewards
1 Risk
Rewards
-
Revenue grew 24.8% last year.
-
Returns 19.5% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (17.2x) is higher than trailing (13.1x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.06x
Forward P/E
17.24x
P/B
2.09x
P/S
1.38x
EV/EBITDA
8.49x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
46.4%
Operating margin
13.0%
Net margin
11.4%
ROE
19.5%
ROA
10.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.30x
Current ratio
3.71x
Quick ratio
3.52x
Total debt
$15.62M
Total cash
$22.73M
Growth
How the business has been compounding
Revenue TTM
$80.06M
Revenue 5Y CAGR
31.9%
EPS TTM
0.66
EPS 5Y CAGR
43.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.03M
Free CF TTM
$2.68M
FCF margin
3.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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