Legence Corp. Class A Common stock Fundamental Analysis
Legence Corp. Class A Common stock Fundamental Analysis
Legence Corp. Class A Common stock (LGN) shows moderate financial fundamentals with a PE ratio of -206.34, profit margin of -0.73%, and ROE of -5.43%. The company generates $3.1B in annual revenue with strong year-over-year growth of 21.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LGN's fundamental strength across five key dimensions:
Efficiency Score
WeakLGN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLGN trades at attractive valuation levels.
Growth Score
ModerateLGN shows steady but slowing expansion.
Financial Health Score
ModerateLGN shows balanced financial health with some risks.
Profitability Score
WeakLGN struggles to sustain strong margins.
Key Financial Metrics
Is LGN Expensive or Cheap?
P/E Ratio
LGN trades at -206.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LGN's PEG of 1.46 indicates fair valuation.
Price to Book
The market values Legence Corp. Class A Common stock at 10.07 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 47.15 times EBITDA. This signals the market has high growth expectations.
How Well Does LGN Make Money?
Net Profit Margin
For every $100 in sales, Legence Corp. Class A Common stock keeps $-0.73 as profit after all expenses.
Operating Margin
Core operations generate 3.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.43 in profit for every $100 of shareholder equity.
ROA
Legence Corp. Class A Common stock generates $-0.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Legence Corp. Class A Common stock produces operating cash flow of $348.50M, showing steady but balanced cash generation.
Free Cash Flow
Legence Corp. Class A Common stock produces free cash flow of $297.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.42 in free cash annually.
FCF Yield
LGN converts 3.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-206.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How LGN Stacks Against Its Sector Peers
| Metric | LGN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -206.34 | 30.55 | Better (Cheaper) |
| ROE | -5.43% | 1237.00% | Weak |
| Net Margin | -0.73% | -20612.00% (disorted) | Weak |
| Debt/Equity | 2.33 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.30 | 21.52 | Neutral |
| ROA | -0.65% | -1308806.00% (disorted) | Weak |
LGN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Legence Corp. Class A Common stock's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
101.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
28.40%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
837.58%
Industry Style: Cyclical, Value, Infrastructure
High Growth