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Legacy Education Inc. (LGCY)
:LGCY
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Legacy Education Inc.
(NYSE MKT:LGCY)
Rating:75Outperform
Price Target:
$14.00
▲(24.33%Upside)
Legacy Education Inc. (LGCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)115.24K
Price to Earnings (P/E)19.8
Beta (1Y)1.07
Revenue Growth37.92%
EPS Growth37.61%
CountryUS
Employees195
SectorConsumer Defensive
Sector Strength53
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding12,380,557
10 Day Avg. Volume116,266
30 Day Avg. Volume115,240
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)3.67
Price to Sales (P/S)0.00
P/FCF Ratio48.42
Enterprise Value/Market CapN/A
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit5.61
Enterprise Value/Ebitda4.21
Forecast
1Y Price Target
$12.50Price Target Upside11.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Legacy Education Inc. Business Overview & Revenue Model
Company DescriptionLegacy Education Inc. (LGCY) is a company specializing in providing educational services and training programs focused on personal finance and investment strategies. The company operates within the education and financial services sectors, offering a range of products and services designed to help individuals improve their financial literacy and achieve their investment goals.
How the Company Makes MoneyLegacy Education Inc. generates revenue primarily through the sale of educational courses and workshops. These programs often include live seminars, online courses, and personalized coaching sessions that cover various aspects of investing, real estate, and personal finance management. The company also earns income through licensing agreements and partnerships with other educational institutions or financial service providers, which help expand its reach and bring in additional revenue streams.
Legacy Education Inc. Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q3-2025)
| % Change Since: 44.73%|
Next Earnings Date:Oct 13, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements in revenue and enrollment growth, successful acquisition integration, and a strong financial position. Despite some increased expenses and anticipated seasonality impacts, the positive aspects outweigh the negatives.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Legacy Education achieved a record-breaking quarter with revenue soaring 50.7% year-over-year to $18.6 million, marking 11 consecutive quarters of double-digit revenue growth.
Significant Increase in Enrollment
The company saw a 70.7% increase in new student starts and a 49.8% growth in ending enrollment, reaching 3,245 students as of March 31, 2025.
Successful Acquisition Integration
The integration of Contra Costa Medical Career College added 468 students and expanded Legacy Education's footprint in high-demand healthcare markets.
Strong Financial Performance
Legacy Education reported a net income increase of 57.1% to $2.8 million, and an adjusted EBITDA rise of 60% to $3.9 million year-over-year.
Robust Cash Position
The company maintains a strong balance sheet with $17.3 million in cash and $22 million in working capital, providing ample liquidity for growth initiatives.
High Placement Rates
Legacy Education reported an overall nursing NCLEX pass rate of 83% and placement rates of 75% and 76% through their accreditors ACCET and ABHES, respectively.
Expansion in High-Demand Programs
The company is adding new program offerings in high-demand fields such as sterile processing, surgical technician, and EMT, aligning with employer needs.
Negative Updates
Increased General and Administrative Expenses
General and administrative expenses increased to $4.6 million or 24.9% of revenue, up from $3.3 million or 26.8% of revenue last year, driven by higher marketing, professional fees, and bad debt expense.
Seasonality Impact
The company anticipates seasonality impacts in Q4, which may lead to lower revenue compared to Q3, despite strong starts and enrollment trends.
Company Guidance
During the Legacy Education Third Quarter Fiscal 2025 Earnings Conference Call, the company provided robust guidance highlighting significant growth metrics. Legacy Education achieved a remarkable 50.7% increase in revenue year-over-year, reaching $18.6 million, driven by a 70.7% surge in new student starts and a 49.8% rise in ending enrollment, totaling 3,245 students. The integration of Contra Costa Medical Career College contributed notably, adding 468 students. Legacy Education reported a net income of $2.8 million, or $0.21 per diluted share, with an adjusted EBITDA up by 60% to $3.9 million. The company maintained a strong balance sheet with $17.3 million in cash and $22 million in working capital, supporting its growth initiatives. The operational focus included expanding hybrid learning models, leveraging advanced simulation technology, and enhancing program offerings to meet market demands. The company remains optimistic about its strategic priorities, including enrollment growth, program expansion, and potential acquisitions, underpinned by strong liquidity and minimal debt.Legacy Education Inc. Financial Statement Overview
Summary
Legacy Education Inc. shows strong revenue growth and profitability, with a solid balance sheet and manageable debt. However, revenue stability and cash flow fluctuations present some risks.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 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Dec 2019 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 46.00M | 35.46M | 30.70M | 57.81M | 16.43M |
| Gross Profit | 19.65M | 35.23M | 12.59M | 30.06M | 5.04M |
| EBITDA | 7.37M | 4.19M | 3.67M | 10.12M | -702.79K |
| Net Income | 5.11M | 2.67M | 2.34M | 9.61M | -687.64K |
Balance Sheet | |||||
| Total Assets | 35.17M | 27.25M | 20.61M | 17.95M | 10.76M |
| Cash, Cash Equivalents and Short-Term Investments | 10.38M | 9.29M | 8.77M | 7.85M | 1.42M |
| Total Debt | 4.84M | 5.56M | 953.24K | 1.10M | 1.21M |
| Total Liabilities | 12.75M | 11.82M | 7.01M | 6.95M | 4.68M |
| Stockholders Equity | 22.42M | 15.42M | 13.60M | 11.00M | 6.08M |
Cash Flow | |||||
| Free Cash Flow | 1.23M | 1.57M | 793.73K | 4.64M | -683.43K |
| Operating Cash Flow | 1.65M | 1.77M | 1.09M | 4.84M | -596.95K |
| Investing Cash Flow | -423.71K | -195.08K | -294.87K | -199.59K | -271.01K |
| Financing Cash Flow | -238.55K | -1.05M | 129.03K | 1.79M | 2.06M |
Legacy Education Inc. Technical Analysis
Positive
11.26
Price Trends
10.17
Positive
8.50
Positive
7.94
Positive
Market Momentum
0.37
Positive
54.07
Neutral
69.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCY, the sentiment is Positive. The current price of 11.26 is below the 20-day moving average (MA) of 11.26, above the 50-day MA of 10.17, and above the 200-day MA of 7.94, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 69.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGCY.
Legacy Education Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 19.76 | 24.70% | ― | 37.92% | 37.61% | ||
53 Neutral | C$4.45B | 4.01 | -20.57% | 3.54% | 8.21% | 2.02% | |
52 Neutral | $14.32M | ― | ― | ― | ― | ||
52 Neutral | $7.40M | ― | -49.39% | ― | ― | ― | |
44 Neutral | $336.66K | ― | ― | ― | ― | ||
43 Neutral | $6.29M | ― | -7.52% | ― | -28.27% | -409.38% |
* Consumer Defensive Sector Average
Performance Comparison
LGCY
Legacy Education Inc.
11.26
6.87
156.49%
VSA
TCTM Kids IT Education
1.27
0.22
20.95%
AMBO
Ambow Education Holding
2.59
1.31
102.34%
WAFU
Wah Fu Education Group
1.43
-0.47
-24.74%
CLEUF
China Liberal Education Holdings
0.10
-379.94
-99.97%
Legacy Education Inc. Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Legacy Education Inc. Releases New Presentation Materials
Neutral
May 19, 2025
Legacy Education Inc. has prepared presentation materials to be used from May 19, 2025, onwards, detailing the company’s operations and performance. These materials are intended to provide summary information within the context of the company’s filings with the SEC and other public announcements, potentially impacting stakeholder understanding of the company’s future direction.
The most recent analyst rating on (LGCY) stock is a Buy with a $8.25 price target. To see the full list of analyst forecasts on Legacy Education Inc. stock, see the LGCY Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.