(LGN) Legence Common stock - Overview
Sector: Industrials | Industry: Engineering & Construction | Exchange: NASDAQ (USA) | Market Cap: 13.460m USD | Total Return: 167% in 12m
Avg Turnover: 134M
Rev. Trend: 99.6%
Warnings
High Debt/EBITDA (5.1) with thin interest coverage (0.7)
Interest Coverage Ratio 0.7 is critical
Altman Z'' 0.39 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Leader, Confidence
Legence Corp. (LGN) is a California-based provider of specialized engineering and maintenance services for mission-critical building systems. The company operates through two primary divisions: Engineering & Consulting, which focuses on sustainable MEP (mechanical, electrical, and plumbing) design and energy reduction strategies, and Installation & Maintenance, which handles the fabrication, installation, and long-term upkeep of HVAC and process piping systems.
The business model relies on a mix of high-margin design services and recurring revenue from preventative maintenance contracts. Legence serves sectors with complex infrastructure requirements, including data centers, life sciences, and healthcare, where system downtime can result in significant financial loss. As energy efficiency regulations for commercial real estate tighten, firms in the Construction & Engineering sub-industry increasingly function as essential partners in decarbonization and regulatory compliance.
For a deeper look into the companys valuation metrics and historical performance, consider reviewing the data on ValueRay. Legence Corp. remains a key player in the modernization of aging institutional infrastructure across the United States.
- Data center infrastructure demand drives high-margin engineering and installation revenue
- Federal energy efficiency mandates increase adoption of sustainable MEP system retrofits
- Skilled labor shortages and rising material costs pressure project execution margins
- Institutional construction spending cycles directly impact new facility installation backlogs
- Recurring maintenance service contracts provide stable cash flow against cyclical construction volatility
| Net Income: -22.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 8.32 > 1.0 |
| NWC/Revenue: 10.94% < 20% (prev 15.07%; Δ -4.13% < -1%) |
| CFO/TA 0.10 > 3% & CFO 347.5m > Net Income -22.5m |
| Net Debt (960.5m) to EBITDA (187.1m): 5.13 < 3 |
| Current Ratio: 1.30 > 1.5 & < 3 |
| Outstanding Shares: last quarter (59.6m) vs 12m ago 1.79% < -2% |
| Gross Margin: 18.61% > 18% (prev 0.21%; Δ 1.84k% > 0.5%) |
| Asset Turnover: 106.1% > 50% (prev 91.70%; Δ 14.37% > 0%) |
| Interest Coverage Ratio: 0.73 > 6 (EBITDA TTM 187.1m / Interest Expense TTM 89.1m) |
| A: 0.10 (Total Current Assets 1.47b - Total Current Liabilities 1.13b) / Total Assets 3.48b |
| B: -0.08 (Retained Earnings -293.9m / Total Assets 3.48b) |
| C: 0.02 (EBIT TTM 65.3m / Avg Total Assets 2.91b) |
| D: -0.12 (Book Value of Equity -291.6m / Total Liabilities 2.53b) |
| Altman-Z'' = 0.39 = B |
| DSRI: 0.93 (Receivables 827.3m/614.7m, Revenue 3.08b/2.14b) |
| GMI: 1.14 (GM 18.61% / 21.25%) |
| AQI: 0.83 (AQ_t 0.50 / AQ_t-1 0.61) |
| SGI: 1.44 (Revenue 3.08b / 2.14b) |
| TATA: -0.11 (NI -22.5m - CFO 347.5m) / TA 3.48b) |
| Beneish M = -2.85 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 81.58 with a total of 671,169 shares traded.
Over the past week, the price has changed by -3.23%,
over one month by +1.47%,
over three months by +48.71% and
over the past year by +167.04%.
Legence Common stock has no consensus analysts rating.
P/E Forward = 52.0833
P/S = 4.3667
P/B = 12.4666
Revenue TTM = 3.08b USD
EBIT TTM = 65.3m USD
EBITDA TTM = 187.1m USD
Long Term Debt = 1.01b USD (from longTermDebt, last quarter)
Short Term Debt = 45.7m USD (from shortTermDebt, last quarter)
Debt = 1.21b USD (corrected: LT Debt 1.01b + ST Debt 45.7m) + Leases 150.7m
Net Debt = 960.5m USD (calculated: Debt 1.21b - CCE 244.6m)
Enterprise Value = 14.4b USD (13.5b + Debt 1.21b - CCE 244.6m)
Interest Coverage Ratio = 0.73 (Ebit TTM 65.3m / Interest Expense TTM 89.1m)
EV/FCF = 48.53x (Enterprise Value 14.4b / FCF TTM 297.1m)
FCF Yield = 2.06% (FCF TTM 297.1m / Enterprise Value 14.4b)
FCF Margin = 9.64% (FCF TTM 297.1m / Revenue TTM 3.08b)
Net Margin = -0.73% (Net Income TTM -22.5m / Revenue TTM 3.08b)
Gross Margin = 18.61% ((Revenue TTM 3.08b - Cost of Revenue TTM 2.51b) / Revenue TTM)
Gross Margin QoQ = 14.39% (prev 19.99%)
Tobins Q-Ratio = 4.14 (Enterprise Value 14.4b / Total Assets 3.48b)
Interest Expense / Debt = 7.40% (Interest Expense 89.1m / Debt 1.21b)
Taxrate = 21.0% (US default 21%)
NOPAT = 51.6m (EBIT 65.3m * (1 - 21.00%))
Current Ratio = 1.30 (Total Current Assets 1.47b / Total Current Liabilities 1.13b)
Debt / Equity = 2.38 (Debt 1.21b / totalStockholderEquity, last quarter 505.4m)
Debt / EBITDA = 5.13 (Net Debt 960.5m / EBITDA 187.1m)
Debt / FCF = 3.23 (Net Debt 960.5m / FCF TTM 297.1m)
Total Stockholder Equity = 413.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.77% (Net Income -22.5m / Total Assets 3.48b)
RoE = -3.18% (Net Income TTM -22.5m / Total Stockholder Equity 707.5m)
RoCE = 3.81% (EBIT 65.3m / Capital Employed (Equity 707.5m + L.T.Debt 1.01b))
RoIC = 2.23% (NOPAT 51.6m / Invested Capital 2.31b)
WACC = 14.92% (E(13.5b)/V(14.7b) * Re(15.73%) + D(1.21b)/V(14.7b) * Rd(7.40%) * (1-Tc(0.21)))
Discount Rate = 15.73% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 59.59 | Cagr: 1.02%
[DCF] Terminal Value 59.68% ; FCFF base≈180.3m ; Y1≈206.6m ; Y5≈304.1m
[DCF] Fair Price = 14.81 (EV 2.10b - Net Debt 960.5m = Equity 1.14b / Shares 76.9m; r=14.92% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: N/A | # QB: 0
Revenue Correlation: 99.64 | Revenue CAGR: 25.67% | SUE: N/A | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.32 | Chg30d=+44.53% | Revisions=+14% | Analysts=9
EPS next Quarter (2026-09-30): EPS=0.36 | Chg30d=+23.54% | Revisions=+43% | Analysts=9
EPS current Year (2026-12-31): EPS=1.46 | Chg30d=+37.56% | Revisions=+14% | GrowthEPS=+0.0% | GrowthRev=+67.2%
EPS next Year (2027-12-31): EPS=1.74 | Chg30d=+26.28% | Revisions=+25% | GrowthEPS=+19.4% | GrowthRev=+13.1%
[Analyst] Revisions Ratio: +43%