Is Legacy Housing Corp (LEGH) Halal?

NASDAQ Consumer Cyclical United States $470M
✓ HALAL
Confidence: 95/100
Legacy Housing Corp (LEGH) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.3% against the AAOIFI threshold of 30%, Legacy Housing Corp comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Residential Construction), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.3%
/ 30%
0.2%
/ 30%
17.1%
/ 30%
1.43%
/ 5%
✓ HALAL
DJIM 0.3%
/ 33%
0.2%
/ 33%
17.1%
/ 33%
1.43%
/ 5%
✓ HALAL
MSCI 0.3%
/ 33%
0.2%
/ 33%
15.2%
/ 33%
1.43%
/ 5%
✓ HALAL
S&P 0.3%
/ 33%
0.2%
/ 33%
17.1%
/ 33%
1.43%
/ 5%
✓ HALAL
FTSE 0.3%
/ 33%
0.2%
/ 33%
15.2%
/ 50%
1.43%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
11.4
Forward: 9.3
EPS
$1.74
P/B Ratio
0.9
EV/EBITDA
9.2
EV: $464M
Revenue
$165M
Growth: -29.4%
Beta
0.7
Low volatility
Current Ratio
3.5

Profitability

Gross Margin 47.4%
Operating Margin 26.9%
Net Margin 25.4%
Return on Equity (ROE) 8.2%
Return on Assets (ROA) 5.4%

Cash Flow & Balance Sheet

Operating Cash Flow$37M
Free Cash Flow$28M
Total Debt$3M
Debt-to-Equity0.5
Current Ratio3.5
Total Assets$580M

Price & Trading

Last Close$19.88
50-Day MA$20.89
200-Day MA$22.61
Avg Volume110K
Beta0.7
52-Week Range
$18.29
$29.45

About Legacy Housing Corp (LEGH)

CEO
Mr. Kenneth E. Shipley
Employees
592
Sector
Consumer Cyclical
Industry
Residential Construction
Country
United States
Exchange
NASDAQ
Market Cap
$470M
Currency
USD

Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. The company manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. It also provides inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. The company is involved in financing and developing new manufactured home communities. It markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. The company was founded in 2005 and is headquartered in Bedford, Texas.

Purification Calculator

As a halal stock with 1.43% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Legacy Housing Corp (LEGH) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Legacy Housing Corp is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Legacy Housing Corp's debt ratio?

Legacy Housing Corp's debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.3%.

Does Legacy Housing Corp require dividend purification?

Yes, Legacy Housing Corp has an impermissible income ratio of 1.43%, which means 1.43% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Legacy Housing Corp's key financial metrics?

Legacy Housing Corp has a market capitalization of $470M, trailing P/E ratio of 11.4, and revenue of $165M. The company maintains a gross margin of 47.4% and a net margin of 25.4%. Return on equity stands at 8.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.