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Legacy Education Inc. (LGCY)
:LGCY
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Legacy Education Inc.
(NYSE MKT:LGCY)
69Neutral
Legacy Education Inc. (LGCY) vs. S&P 500 (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)61.65K
Price to Earnings (P/E)14.1
Beta (1Y)1.74
Revenue Growth32.68%
EPS Growth57.78%
CountryUS
Employees195
SectorConsumer Defensive
Sector Strength73
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.52
Shares Outstanding12,380,557
10 Day Avg. Volume25,492
30 Day Avg. Volume61,646
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)N/A
Price to Sales (P/S)3.27
Price to Cash Flow (P/CF)32.20
P/FCF Ratio45.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.40Price Target Upside42.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Legacy Education Inc. Business Overview & Revenue Model
Company DescriptionLegacy Education Inc. (LGCY) is a company that operates in the financial education sector. It offers a range of educational products and services aimed at helping individuals improve their financial literacy and investment skills. The company provides courses and workshops on topics such as real estate investing, stock market trading, and personal finance management.
How the Company Makes MoneyLegacy Education Inc. makes money primarily through the sale of its educational courses and programs. These are offered both online and in-person, allowing the company to reach a wide audience. Revenue is generated through tuition fees paid by individuals attending these courses and workshops. Additionally, the company may partner with educational institutions or industry experts to enhance its offerings, which can contribute to its revenue streams. Legacy Education Inc. might also earn income from the sale of supplementary educational materials or tools that support its core programs.
Legacy Education Inc. Financial Statement Overview
Summary
Legacy Education Inc. demonstrates strong revenue growth and profitability, with a solid balance sheet and manageable debt levels. However, there are concerns about revenue consistency and cash flow fluctuations.Income Statement
Legacy Education Inc. shows strong revenue growth and improving profitability. The revenue grew by 29.7% from 2023 to 2024, signaling a positive growth trajectory. Gross profit and net profit margins are solid at 42.7% and 11.1% respectively for 2024, indicating stable profitability. However, the company experienced a significant revenue drop in 2021, which raises concerns about revenue stability.72
Positive
Balance Sheet
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.22, which reflects a low level of leverage and financial risk. Stockholders' equity has grown consistently, and the equity ratio is a robust 63.8% in 2024, indicating financial stability. However, the total debt increased from 2022 to 2023, which warrants monitoring.68
Positive
Cash Flow
Free cash flow is positive and growing, with a 2024 free cash flow of $1.23 million, representing a decline from the previous year's $1.57 million. The operating cash flow to net income ratio in 2024 is 0.32, suggesting moderate efficiency in cash generation relative to income. Although positive, cash flows show some fluctuation over the years.65
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 52.72M | 46.00M | 35.46M | 30.70M | 57.81M | 16.43M | Gross Profit |
| 22.95M | 19.65M | 14.67M | 12.59M | 30.06M | 5.04M | EBIT |
| 7.53M | 6.22M | 3.62M | 3.22M | 9.23M | -2.38M | EBITDA |
| 8.98M | 7.37M | 4.19M | 3.67M | 10.12M | -702.79K | Net Income Common Stockholders |
| 18.16M | 5.11M | 2.67M | 2.34M | 9.61M | -687.64K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 16.87M | 10.38M | 9.29M | 8.77M | 7.85M | 1.42M | Total Assets |
| 62.07M | 35.17M | 27.25M | 20.61M | 17.95M | 10.76M | Total Debt |
| 15.93M | 4.84M | 5.56M | 953.24K | 1.10M | 1.21M | Net Debt |
| -936.07K | -5.54M | -3.74M | -7.81M | -6.74M | -206.00K | Total Liabilities |
| 25.66M | 12.75M | 11.82M | 7.01M | 6.95M | 4.68M | Stockholders Equity |
| 36.41M | 22.42M | 15.42M | 13.60M | 11.00M | 6.08M |
| Cash Flow | Free Cash Flow | ||||
| 2.06M | 1.23M | 1.57M | 793.73K | 4.64M | -683.43K | Operating Cash Flow |
| 2.57M | 1.65M | 1.77M | 1.09M | 4.84M | -596.95K | Investing Cash Flow |
| -6.64M | -423.71K | -195.08K | -294.87K | -199.59K | -271.01K | Financing Cash Flow |
| 9.27M | -238.55K | -1.05M | 129.03K | 1.79M | 2.06M |
Legacy Education Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.50B | 21.10 | 22.95% | ― | 13.13% | 56.75% | |
74 Outperform | $7.76B | 19.92 | 10.40% | ― | 34.42% | 28.54% | |
73 Outperform | $5.03B | 22.61 | 30.13% | ― | 7.50% | 13.70% | |
69 Neutral | 14.08 | 23.05% | ― | 32.68% | 57.78% | ||
68 Neutral | $2.11B | 18.35 | 6.80% | 2.80% | 7.68% | 61.28% | |
62 Neutral | $20.67B | 14.36 | -12.41% | 3.14% | 1.24% | 2.53% | |
47 Neutral | $69.68M | ― | -147.16% | ― | -13.78% | -5297.96% |
* Consumer Defensive Sector Average
Performance Comparison
LGCY
Legacy Education Inc.
7.31
2.92
66.51%
LOPE
Grand Canyon Education
174.94
37.59
27.37%
LRN
Stride
126.20
63.20
100.32%
EDU
New Oriental Education Tech
46.96
-39.72
-45.82%
STRA
Strategic Education
85.66
-15.68
-15.47%
CHGG
Chegg
0.66
-6.56
-90.86%
Legacy Education Inc. Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -24.48% | Next Earnings Date: Feb 13, 2025
Earnings Call Sentiment Positive
The earnings call showcased strong revenue growth, strategic acquisitions, and resilience in operations despite external challenges. Financial metrics were positive, and the company continues to expand its program offerings and enrollment. However, there are concerns about regulatory scrutiny in the for-profit education sector and the recent impact of natural disasters.Highlights
Strong Revenue Growth
Revenue grew 29.2% year-over-year to $13.6 million, driven by enrollment growth and expansion in high-demand health care programs.
Significant Increase in Student Enrollment
Student population grew 44.8% year-over-year to 2,768 students, fueled by strong enrollments and the acquisition of Contra Costa Medical Career College.
Strategic Acquisition
Acquisition of Contra Costa Medical Career College completed, adding 14 new programs and expanding market opportunities.
Resilience and Operational Excellence
Despite the Los Angeles fires, operations continued smoothly with no downtime, showcasing strong emergency preparedness and community support.
Positive Financial Metrics
Net income reached $1.4 million, 8.5% growth year-over-year. EBITDA of $1.8 million, 3.6% growth year-over-year.
Lowlights
Impact of Los Angeles Fires
The recent Los Angeles fires affected the Pasadena campus, leading to temporary shutdown and transition to online learning, with some employees and students losing their homes.
Regulatory Environment Concerns
Ongoing scrutiny of the for-profit education sector, although Legacy Education remains confident in its focus on high-demand allied health programs.
Company Guidance
During the Legacy Education Inc. Second Quarter Fiscal 2025 Earnings Conference Call, the company highlighted several key financial metrics and strategic initiatives. Revenue for Q2 2025 increased by 29.2% year-over-year to $13.6 million, driven by a 44.8% rise in the student population, reaching 2,768 students, and a 3% increase in new student starts. The net income was $1.4 million, with earnings per share at $0.10. EBITDA stood at $1.8 million, while adjusted EBITDA was $1.9 million. For the six months ended December 31, 2024, revenue was $27.6 million, reflecting a 32.1% growth year-over-year, with net income at $3.5 million, up 47.9%. The company reported strong cash reserves of $16.9 million, ensuring financial flexibility. Legacy Education also emphasized its strategic expansion in healthcare programs, the successful integration of Contra Costa Medical Career College, and resilience during the Los Angeles fires, underscoring its commitment to educational excellence and community support.Legacy Education Inc. Corporate Events
Executive/Board Changes
Legacy Education Inc. Amends Executive Employment Agreements
Neutral
Mar 28, 2025
On March 28, 2025, Legacy Education Inc. announced amendments to the employment agreements of its CEO, LeeAnn Rohmann, and CFO, Brandon Pope. Ms. Rohmann’s salary was increased to $415,000, with potential payouts tied to company performance. Mr. Pope’s agreement includes a $300,000 base salary and potential annual bonuses, with terms for severance and equity vesting upon certain types of termination.
Regulatory Filings and Compliance
Legacy Education Inc. Updates Investor Presentation
Neutral
Mar 14, 2025
On March 14, 2025, Legacy Education Inc. updated its investor presentation on its website, which will be utilized at the 37th Annual Roth Conference from March 16-18, 2025. This update is part of a regulatory filing and is not intended to be incorporated into other documents under the Securities Exchange Act of 1934.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.