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LBLandBridge Company LLC
$82.11$6.3B
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  4. Financial Ratios

LandBridge Company LLC (LB) Financial Ratios

Latest Ratios: P/E Ratio 76.0x · EV/EBITDA 52.7x · ROE 4.3%. (2022–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

LB Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022
Market Cap$6.3B$1.6B$4.7B——
Enterprise Value$6.9B$2.1B$5.1B——
P/E Ratio →76.0353.20895.98——
P/S Ratio31.768.0343.11——
P/B Ratio2.882.017.79——
P/FCF51.8213.1171.11——
P/OCF50.0812.6770.08——

P/E links to full P/E history page with 30-year chart

LB EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022
EV / Revenue—10.6946.24——
EV / EBITDA52.7316.38———
EV / EBIT57.8318.65———
EV / FCF—17.4576.28——

LB Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022
Gross Margin91.0%91.0%90.0%83.2%79.6%
Operating Margin59.5%59.5%-15.0%96.1%-6.2%
Net Profit Margin15.1%15.1%4.6%86.7%-12.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022
ROE4.3%4.3%1.3%35.0%-3.0%
ROA2.5%2.5%0.8%22.4%-2.3%
ROIC7.8%7.8%-2.1%21.6%-1.0%
ROCE10.1%10.1%-2.6%26.9%-1.2%

LB Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022
Debt / Equity0.710.710.630.850.29
Debt / EBITDA4.314.31—1.6417.49
Net Debt / Equity—0.670.570.600.17
Net Debt / EBITDA4.074.07—1.1610.22
Debt / FCF—4.345.161.812.07
Interest Coverage3.493.49-0.7010.06-0.99

LB Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022
Current Ratio4.874.873.671.932.17
Quick Ratio4.874.873.671.932.17
Cash Ratio2.502.502.571.401.47
Asset Turnover—0.150.110.250.19
Inventory Turnover—————
Days Sales Outstanding—44.5648.6567.2279.85

LB Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022
Dividend Yield2.8%4.0%3.8%——
Payout Ratio211.5%211.5%3488.1%166.5%—

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022
Earnings Yield1.3%1.9%0.1%——
FCF Yield1.9%7.6%1.4%——
Buyback Yield0.0%0.0%0.0%——
Total Shareholder Yield2.8%4.0%3.8%——
Shares Outstanding—$28M$73M$15M$15M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrong
Balance SheetMixed
Cash FlowRobust
Top Statement Risk

Extreme geographic concentration risk

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Premium Pricing for Royalty Growth Story

LandBridge trades at an 83.1x TTM P/E and 57.2x EV/EBITDA, a significant premium to peers like TPL (53.0x P/E, 38.8x EV/EBITDA), suggesting the market prices in its unique Delaware Basin infrastructure 'toll' model and 81.1% revenue growth. As reported in recent filings, the Forward P/E of 62.2x indicates anticipated earnings expansion, but the valuation remains elevated against sector norms.

The current multiples imply investors are paying for more than just the underlying royalty cash flows; they appear to be pricing in LandBridge's potential to become a quasi-midstream utility for its region. The valuation disconnect with pure-play royalty peers like Viper Energy (VNOM) underscores a possible re-rating thesis. However, sustaining this premium will require demonstrating that the high growth rate is not a one-time asset contribution event and that the integrated water/surface model generates durable, non-commodity-linked returns.

Gross Margin Supremacy, Net Margin Gap

Based on reported figures, LandBridge's gross margin averaged 90.95% over the last four quarters, reflecting a pure fee-based model with minimal direct costs. However, the substantial spread to the 15.1% net margin indicates significant non-operating expenses, likely related to its corporate structure or financing, which are compressing the final earnings despite operational excellence.

The operational profitability is exceptional, with an operating margin (59.5%) that far exceeds traditional E&P services, confirming the asset-light nature of the royalty business. The net margin gap warrants investigation into non-recurring charges, high effective tax rates, or interest expense not fully captured in operating income. For analysts, the operating margin is likely the more accurate reflection of the business model's true earning power before capital structure and accounting adjustments.

Low ROIC Contrasts with High Margins

LandBridge's ROIC of 2.5% as of 2026Q2, based on its reported financial data, appears surprisingly low given its 90%+ gross margins and asset-heavy balance sheet. This suggests the company's substantial equity base, rebuilt from prior deficits, and the capital tied up in long-duration land assets are diluting returns significantly compared to peers like TPL (42.1% ROIC).

The low ROIC is a critical metric to monitor, as it indicates that despite high profitability on new activities, the overall return on the entire invested capital base is modest. This could be due to the legacy asset base not yet being fully monetized or the equity base being large relative to current earnings. For a company of this type, the ROIC trend will be more telling than its absolute level; investors should watch for expansion as recent acquisitions scale.

Rising Debt from a Zero-Leverage Base

LandBridge's debt-to-equity ratio has increased from 0.85 in 2024Q1 to 0.64 in 2026Q2, per balance sheet data, signaling a strategic shift toward using modest leverage for growth. While the current interest coverage of 4.80x is adequate, this represents a rapid build in debt from a company that operated with negligible leverage just two years prior.

The leverage profile has fundamentally changed. The company is no longer a pure balance-sheet fortress; it now carries over $535M in debt. The interest coverage, while currently comfortable, requires monitoring given the volatile quarterly EBITDA. The primary use of this debt appears to be for asset acquisitions, which ties the risk directly to the productive capacity of those acquired acres. Any slowdown in Delaware Basin activity could pressure coverage ratios more quickly than for a more diversified peer.

The P/E Multiple's Misleading Nature

The P/E ratio of 83.1x is the most commonly misapplied metric for LandBridge, as it severely understates true earnings power due to massive non-cash depletion and amortization charges typical of royalty businesses. As reported in the cash flow analysis, operating cash flow consistently triples net income, making the EV/EBITDA or Price-to-FCF multiples more relevant for valuation.

For royalty and land-intensive companies, GAAP net income is often a poor proxy for economic earnings because it includes large, non-cash charges related to the amortization of the underlying asset base. LandBridge's OCF/NI ratio of 3.37 in the latest quarter confirms this distortion. An analyst relying solely on the P/E would misjudge the company's cash generation ability. The appropriate adjustment is to focus on cash flow-based multiples (Price/FCF at 56.6x) or EV/EBITDA, while also normalizing for the lumpy nature of surface easement payments.

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LB — Frequently Asked Questions

Quick answers to the most common questions about buying LB stock.

What is LandBridge Company LLC's P/E ratio?

LandBridge Company LLC's current P/E ratio is 76.0x. The historical average is 53.2x. This places it at the 100th percentile of its historical range.

What is LandBridge Company LLC's EV/EBITDA?

LandBridge Company LLC's current EV/EBITDA is 52.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.4x.

What is LandBridge Company LLC's ROE?

LandBridge Company LLC's return on equity (ROE) is 4.3%. The historical average is 9.4%.

Is LB stock overvalued?

Based on historical data, LandBridge Company LLC is trading at a P/E of 76.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is LandBridge Company LLC's dividend yield?

LandBridge Company LLC's current dividend yield is 2.79% with a payout ratio of 211.5%.

What are LandBridge Company LLC's profit margins?

LandBridge Company LLC has 91.0% gross margin and 59.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does LandBridge Company LLC have?

LandBridge Company LLC's Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.