Legacy Education Inc. (LGCY) AI Stock Analysis
LGCY AI stock analysis summary
AI ResearchLegacy Education Inc. (LGCY) provides healthcare and vocational postsecondary education programs through several career colleges. The company generated $80.1M in revenue in FY2026, delivering 24.8% annual sales growth alongside $2.7M in free cash flow. It maintains a sound financial profile with net cash of $7.3M and a current ratio of 3.70.
- Market cap
- $131.3M
- Revenue (TTM)
- $80.1M
- P/E
- 15.5x
- 1Y return
- 7.8% S&P 500 16.8%
- Avg. target
- $14.93 45.7% vs last close
Bull case
- Revenue grew 24.8% in FY2026 to $80.1M, outperforming its US-listed Consumer Defensive peer quarterly growth median of 2.1%.
- The balance sheet carries $7.3M in net cash with a strong current ratio of 3.70 as of June 30, 2026.
- Analysts maintain a mean price target of $14.93, indicating 45.7% upside from the recent closing price of $10.25.
Bear case
- The stock is down 10.3% versus its 200-day moving average and delivered a 1-year return of 7.8% compared to 16.8% for the S&P 500.
- Free cash flow contracted from $6.9M in FY2025 to $2.7M in FY2026.
- The valuation commands a price-to-sales ratio of 1.6x, more than double the peer median of 0.7x.
What Legacy Education does
Legacy Education Inc. provides postsecondary education services to students, high school graduates, and working parents across the United States. Founded in 2009 and based in Lancaster, California, the company operates institutions including High Desert Medical College, Central Coast College, Contra Costa Medical Career College, and Integrity College of Health. It offers associate degrees, diplomas, and certifications in healthcare fields such as ultrasound, vocational nursing, medical assisting, surgical technology, and dental assisting, as well as business and computer specialist programs.
Growth and profitability
Revenue increased from $30.7M in FY2022 to $80.1M in FY2026, reflecting a 5-year revenue CAGR of 6.7% from FY2021 to FY2026. Annual top-line expansion was 15.5% in FY2023, 29.7% in FY2024, 39.5% in FY2025, and 24.8% in FY2026. Gross margin stood at 45.6% in FY2026, slightly down from 46.6% in FY2025, while operating margin reached 14.8%. FY2026 net income was reported at $80.1M, with EPS of $0.66. In the latest quarter ended June 30, 2026, quarterly revenue grew 12.0% year-over-year and quarterly earnings grew 66.4%.
Balance sheet and cash flow
As of June 30, 2026, Legacy Education held $22.7M in cash and short-term investments against total debt of $15.4M, resulting in net cash of $7.3M. Total assets stood at $78.5M and shareholders' equity was $52.8M, supported by a debt-to-equity ratio of 0.29 and a current ratio of 3.70. For FY2026, operating cash flow was $4.0M and capital expenditures were $1.3M, yielding $2.7M in free cash flow.
Valuation and performance
With a market cap of $131.3M and an enterprise value of $124.3M, LGCY trades at a trailing P/E of 15.5x, below the 18.6x median of its US-listed Consumer Defensive peers. Its EV/EBITDA of 9.6x is also below the peer median of 11.7x, while its price-to-sales multiple of 1.6x is above the peer median of 0.7x. Over the past year, the stock returned 7.8%, lagging the 16.8% return of the S&P 500 (SPY).
What analysts expect
Wall Street coverage includes 2 Strong Buy ratings, with no Hold or Sell recommendations. The mean price target is $14.93, representing a 45.7% upside compared to the last close of $10.25. For the fiscal year ending June 30, 2027, consensus estimates call for revenue of $90.1M and EPS of $0.72, representing 20.7% projected EPS growth. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 12, 2026.
Key risks and what to watch
- Operating cash flow decreased from $7.8M in FY2025 to $4.0M in FY2026, which could pressure cash generation if capital needs rise.
- Short-term stock momentum is soft, with the price trading 10.3% below its 200-day average.
- Revenue growth moderated to 12.0% in the latest quarter compared to 24.8% for full-year FY2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this LGCY AI stock analysis
This page is an AI-written research summary of Legacy Education Inc. (LGCY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: LGCY income statement, LGCY balance sheet, LGCY key metrics, LGCY analyst forecast, LGCY chart. See the LGCY stock overview for the latest quote and news.
LGCY AI stock analysis FAQ
What schools does Legacy Education Inc. operate?
Legacy Education operates several postsecondary institutions, including High Desert Medical College, Central Coast College, Contra Costa Medical Career College, and Integrity College of Health.
Does Legacy Education pay a dividend?
No, Legacy Education does not currently pay a dividend.
What are analysts forecasting for LGCY in FY2027?
Analysts estimate FY2027 revenue of $90.1M and EPS of $0.72, which represents 20.7% earnings per share growth.
How much debt does Legacy Education have?
As of June 30, 2026, the company had total debt of $15.4M and cash and short-term investments of $22.7M, leaving it with net cash of $7.3M.