Q: Thoughts on Legacy Education Inc. on the NYSE for a 3-5 year hold?
5i Research Answer:
LGCY owns and operates education campuses in California for healthcare certificates and degrees. It is a small name ($141M market cap) and forward sales growth estimates are around 15%+. It has been growing its sales nicely, demonstrating margin expansion, and it generates positive free cash flows. We think it looks interesting, and its valuation is decent at 19X forward earnings. While it is a small name, we would be OK with a position here, while being mindful of position sizing and its small-cap risks.