Legence Corp. (LGN) stock analysis
Close on Nov 11, 2026Market cap $4.01BP/E –Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak6 of 30 checks passed
Legence passes 6 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 2/6
- Past performance
- 2/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Debt covered by cash flow
Operating cash flow over the last twelve months equals 37.6% of total debt.
Guidance raised
Legence raised its full year 2026 Total revenues outlook on Aug 13, 2026.
Growing faster than the industry
Revenue grew 69.2% over the last twelve months; the Construction Special Trade Contractors median is 8.0%.
Return on equity above the industry
Legence's return on equity of -7.5% is above the Construction Special Trade Contractors median of -16.7%.
What to watch
Margin of safety under 20%
The price is 288% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $37.09 is above our fair value estimate of $9.55.
Return on capital under 10%
Return on invested capital was 1.7%, below the 10% that usually covers the cost of capital.
High debt
Debt is 172% of shareholders' equity, above the 40% we consider low.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Legence's price-to-book of 6.68 is above the Construction Special Trade Contractors median of 1.66.
Trading above fair value
The share price of $37.09 is above our fair value estimate of $9.55.
Margin of safety under 20%
The price is 288% above fair value, so there is no margin of safety.
Growth2/6
Revenue growth over 3 years
Needs three years of positive revenue.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 69.2% over the last twelve months; the Construction Special Trade Contractors median is 8.0%.
Guidance raised
Legence raised its full year 2026 Total revenues outlook on Aug 13, 2026.
Gross margin slipping
Gross margin was 18.7% over the last twelve months, against 21.3% a year earlier.
Past performance2/6
Return on equity
Needs positive equity and five years of results.
Return on capital under 10%
Return on invested capital was 1.7%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Legence's return on equity of -7.5% is above the Construction Special Trade Contractors median of -16.7%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin above the industry
Legence's net margin of -1.2% is above the Construction Special Trade Contractors median of -7.9%.
Financial health2/6
High debt
Debt is 172% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 37.6% of total debt.
Interest not well covered
Operating income covers interest expense 0.4 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.35 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 1.91; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Legence has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$9.55
The share price is 288% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| EV/EBITDA | 13.0× | – | 13.0× | $11.55 | 58% |
| P/B | 1.7× | – | 1.7× | $9.24 | 17% |
| Earnings power | 14.9% cost of equity | – | – | $5.10 | 25% |
| Fair value | $9.55 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $70.84M
- Value traded per 1% price move
- $15.28M
Downside
High risk
- Typical loss in a bad month
- 36.0%
- Volatility (annualized)
- 81%
- Sharpe ratio, 1 year
- -0.04
- Beta to the S&P 500 (5Y)
- 2.80
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2023 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +21.5% | – | – | – | |
| Gross profit | +24.4% | – | – | – | |
| Operating income | -12.5% | – | – | – | |
| Free cash flow | +2033.8% | – | – | – |
Returns and balance sheet
3 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2023 | FY2023 | FY2025 | Trend |
|---|---|---|---|---|
| Current ratio | – | – | 1.57 | |
| Net debt to EBITDA | – | – | 3.70× | |
| Interest coverage | 0.2× | 0.2× | 0.6× | |
| Capex to revenue | 1.1% | 1.1% | 1.5% |
Cash use needs five years of cash flow figures
Legence does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont needs revenue, assets and equity
This company does not report all three for consecutive years.
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$59.78M
- Cash generatingOperating cash flow above zero$256.87M
- Return on assets improvedROA up on the prior year– → -2.5%
- Earnings backed by cashOperating cash flow above net income$256.87M vs -$59.78M
- Less leverageLong-term debt to assets fell67.4% → 30.3%
- Better liquidityCurrent ratio rose1.84 → 1.57
- No dilutionShare count did not rise– → –
- Gross margin improvedGross margin up on the prior year20.53% → 21.01%
- More efficientAsset turnover rose– → 1.08
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