Limbach Holdings, Inc. (LMB) stock analysis

P/E below its 5-year median

Limbach's P/E of 23.1 is below its own 5-year median of 25.9.

P/E below the industry

Limbach's P/E of 23.1 is below the Construction Special Trade Contractors median of 25.1.

EV/EBITDA above its 5-year median

Limbach's EV/EBITDA of 12.3 is above its 5-year median of 12.0.

P/B above the industry

Limbach's price-to-book of 3.40 is above the Construction Special Trade Contractors median of 1.66.

Trading above fair value

The share price of $57.86 is above our fair value estimate of $56.29.

Margin of safety under 20%

The price is 2.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 9.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 71.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -14.4% over the last twelve months, against a 5-year average of 46.4% a year.

Growing faster than the industry

Revenue grew 23.7% over the last twelve months; the Construction Special Trade Contractors median is 8.0%.

Guidance lowered

Limbach lowered its FY 2026 SG&A expense as a percentage of total revenue outlook on Nov 3, 2026.

Gross margin slipping

Gross margin was 23.6% over the last twelve months, against 28.3% a year earlier.

Return on equity over 15%

Return on equity was 16.2% over the last twelve months and averaged 16.2% over five years.

Return on capital over 10%

Return on invested capital was 16.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Limbach's return on equity of 16.2% is above the Construction Special Trade Contractors median of -16.7%.

Earnings grew over 5 years

Net income grew 46.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 4.4% over the last twelve months, against a 5-year average of 3.7%.

Net margin above the industry

Limbach's net margin of 4.4% is above the Construction Special Trade Contractors median of -7.9%.

Low debt

Debt is 20.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 80.1% five years ago to 20.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 129% of total debt.

Interest well covered

Operating income covers interest expense 11.2 times.

Short-term assets cover short-term debts

Current assets are 1.49 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.67; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Limbach 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.