Legacy Reserves Inc. [NASDAQ:LGCY]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Legacy Reserves Inc. [LGCY], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give LGCY an Hold rating. Its stock price has been found in the range of 5.56 to 6.82. This is compared to its latest closing price of $1.39.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Legacy Reserves Inc. [LGCY] is sitting at 3.00. This is compared to 1 month ago, when its average rating was 3.00.
For the quarter ending in Sep-18 Legacy Reserves Inc. [LGCY] generated $0.15 billion in sales. That’s 0.74% lower than the average estimate of $0.15 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 20 Feb (In 7 Days).
Fundamental Analysis of Legacy Reserves Inc. [LGCY]
Now let’s turn to look at profitability: with a current Operating Margin for Legacy Reserves Inc. [LGCY] sitting at +13.05 and its Gross Margin at +24.37, this company’s Net Margin is now 3.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 5.65, and its Return on Invested Capital has reached 2.00%. Its Return on Assets is -3.86.
Similarly, its Total Debt to Total Capital is 125.25, while its Total Debt to Total Assets stands at 90.20.
What about valuation? This company’s Enterprise Value to EBITDA is 9.44 and its Total Debt to EBITDA Value is 7.32. The Enterprise Value to Sales for this firm is now 3.34, and its Total Debt to Enterprise Value stands at 0.80. companyname [LGCY] has a Price to Cash Flow Ratio of 1.16.
Shifting the focus to workforce efficiency, Legacy Reserves Inc. [LGCY] earns $1,318,130 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.57 and its Total Asset Turnover is 0.31. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.78 and its Current Ratio is 0.78. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Legacy Reserves Inc. [LGCY] has 108.71M shares outstanding, amounting to a total market cap of $159.80M. Its stock price has been found in the range of 1.15 to 10.54. At its current price, it has moved by -86.05% from its 52-week high, and it has moved 27.83% from its 52-week low.
This stock’s Beta value is currently 1.88, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 43.73. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Legacy Reserves Inc. [LGCY] a Reliable Buy?
Shares of Legacy Reserves Inc. [LGCY], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.