Legacy Education Inc. Common Stock (LGCY)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Legacy Education as a small vocational-healthcare educator. In FY2026, the year ended 2026-06-30, revenue was $80.1M and net income $9.1M, up from $64.2M and $7.5M in FY2025. Diluted EPS rose from $0.59 to $0.66. In fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $21.4M and net income $3.0M. The FairStock Lynch screen calls it a fast grower because of 50.8% annual profit growth and 31.2% revenue growth over three years, but the supplied figures show revenue growth of 15.02% and profit growth of 7.52%, so the pace may be cooling. The balance sheet looks respectable: debt-to-equity 0.31, Altman Z 4.41, Piotroski 7/9. ROE is 19.11%, but ROCE is 9.81%, which tells me the business earns a decent return but not a wonderful one. Free cash flow is $4.7M, a 3.6% FCF yield. The moat, as far as these numbers show, is thin: a 305-employee company in career education likely depends on enrollment, program demand, and execution rather than a wide durable advantage. Valuation is the rub. At the 2026-10-13 close of $10.36, P/E is 17.27 and P/B is 2.64. The Graham Number is $7.27, so the price is 42.5% above that conservative marker, meaning no margin of safety. PEG is 2.30, and EV/EBITDA is 9.73. I see a growing, financially sound small business, but not a bargain. If growth continues, today's price may be fair; if profit growth slows toward 7.52%, the stock could be vulnerable to multiple compression.

In plain English: Legacy Education runs career-focused schools that train people for jobs such as ultrasound technician, nursing, dental assisting, and medical billing. The business is growing and profitable, with higher revenue and net income in fiscal year 2026 than in fiscal year 2025. At the recent price of $10.36, the stock does not look like an obvious bargain compared with the company's profits and net assets; it looks closer to fair or a bit expensive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer