How is legacy education?

Legacy Education Inc. (LCGY) appears to be a company with strong growth prospects and a solid financial performance, although it may not be fundamentally undervalued based on the current data.

1. Financial Growth: LGCY has shown robust revenue and earnings growth. The company's revenue grew by 34.1% to $12.8 million in Q4 2024, and its net income increased by 20.96%. Over the past three years, LGCY's revenue CAGR is 22.4%, net income CAGR is 47.93%, and diluted EPS CAGR is 48.6%.

2. Valuation Metrics: LGCY's P/E(TTM) ratio is 12.6x, which is below the US market average of 17.9x. The Price-to-Book (P/B) ratio is 2.78, and the Price-to-Sales (P/S) ratio is 1.36, indicating that the market may be undervaluing the company relative to its sales and book value.

3. Insider Activity: Recent insider transactions, where insiders purchased shares totaling over $112,000, suggest confidence in the company's future prospects. Additionally, the company's strategic growth initiatives and commitment to delivering high-quality educational experiences are underscored by its financial performance and increased student enrollment.
4. Market Position: Legacy Education Inc. offers educational services and has seen an increase in student enrollment and pricing of certain programs, which has contributed to its revenue growth. The company's award-winning and nationally accredited status positions it well in the for-profit post-secondary education sector.
5. Industry Outlook: The demand for educational services and Legacy Education Inc.'s positive growth outlook for 2024, with new student starts increasing by 27.1% and a 28.3% higher student population at the end of the year, indicate a favorable industry trajectory.

In conclusion, while Legacy Education Inc. shows strong growth potential and may be undervalued based on certain valuation metrics, it is important to conduct a comprehensive analysis, considering the company's financial performance, market position, and industry outlook, to make an informed investment decision.