Latest Ratios: P/E Ratio -79.8x · EV/EBITDA 29.7x · ROE -7.6%. (2023–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Market Cap | $5.4B | $2.6B | — | — |
| Enterprise Value | $6.2B | $3.3B | — | — |
| P/E Ratio → | -79.80 | — | — | — |
| P/S Ratio | 2.13 | 1.00 | — | — |
| P/B Ratio | 6.07 | 3.24 | — | — |
| P/FCF | 24.79 | 11.67 | — | — |
| P/OCF | 21.13 | 9.95 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| EV / Revenue | — | 1.29 | — | — |
| EV / EBITDA | 29.69 | 15.83 | — | — |
| EV / EBIT | 66.19 | 70.33 | — | — |
| EV / FCF | — | 14.98 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Gross Margin | 21.0% | 21.0% | 20.4% | 19.5% |
| Operating Margin | 3.6% | 3.6% | 2.8% | 0.6% |
| Net Profit Margin | -2.3% | -2.3% | 0.5% | -2.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| ROE | -7.6% | -7.6% | — | — |
| ROA | -2.4% | -2.4% | 0.4% | -2.2% |
| ROIC | 3.6% | 3.6% | 3.3% | 0.7% |
| ROCE | 4.8% | 4.8% | 3.2% | 0.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Debt / Equity | 1.21 | 1.21 | — | — |
| Debt / EBITDA | 4.60 | 4.60 | 10.06 | 10.86 |
| Net Debt / Equity | — | 0.92 | — | — |
| Net Debt / EBITDA | 3.49 | 3.49 | 9.59 | 9.99 |
| Debt / FCF | — | 3.31 | 158.16 | 61.14 |
| Interest Coverage | 0.46 | 0.46 | 1.79 | 0.21 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Current Ratio | 1.57 | 1.57 | 1.84 | 1.57 |
| Quick Ratio | 1.57 | 1.57 | 1.82 | 1.54 |
| Cash Ratio | 0.33 | 0.33 | 0.20 | 0.20 |
| Asset Turnover | — | 0.95 | 0.89 | 0.76 |
| Inventory Turnover | — | — | 162.97 | 129.94 |
| Days Sales Outstanding | — | 120.78 | 110.75 | 123.86 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Dividend Yield | — | — | — | — |
| Payout Ratio | — | — | 3103.7% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Earnings Yield | — | — | — | — |
| FCF Yield | 4.0% | 8.6% | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $59M | $59M | $59M |
Acquisition-Driven Leverage Risk
Based on current market data, Legence Corp. trades at a forward P/E of 56.42, which suggests that investors are pricing in significant future earnings expansion that has yet to materialize in the company's historical net income figures as reported in recent financial statements.
The valuation appears to be heavily predicated on top-line growth rather than current profitability, as evidenced by the negative TTM P/E ratio. Investors should monitor whether the company can justify these elevated multiples by scaling its operating margins to levels comparable with more mature engineering peers.
According to reported financial data, Legence Corp. has struggled to generate meaningful returns, with ROIC hovering at a modest 1.5% in 2026Q1, indicating that the firm's aggressive capital deployment strategy has not yet translated into efficient compounding of shareholder value relative to its peers.
The low ROIC suggests that the company's heavy investment in acquisitions may be diluting the overall return profile of the business. This warrants further investigation into whether the integration of these acquired entities will eventually drive higher capital efficiency or if the current asset base remains structurally underutilized.
As reported in recent filings, the company's asset turnover ratio of 0.34 in 2026Q1 highlights a relatively slow conversion of assets into revenue, which suggests that the firm's capital-intensive project model may be creating friction in its operational efficiency compared to industry benchmarks.
The variability in DSO, which reached as high as 443 days in 2025Q1, implies significant volatility in cash collection cycles that could strain liquidity. Investors should watch for stabilization in these metrics as a sign that the company is successfully managing its project-based working capital requirements.
Based on the latest balance sheet, Legence Corp. maintains a debt-to-equity ratio of 1.24, which, when combined with an interest coverage ratio of 1.24 in 2026Q1, suggests that the company's ability to service its debt obligations remains tight and sensitive to operational fluctuations.
The high debt-to-EBITDA ratio of 16.81 indicates that the company is carrying a substantial leverage burden relative to its current earnings power. This level of indebtedness may limit management's strategic flexibility and warrants close monitoring of interest rate exposure and refinancing risks.
As noted in industry research, the P/E ratio is frequently misapplied to Legence Corp. because it fails to account for the significant non-cash amortization of intangibles resulting from the company's aggressive acquisition-led growth strategy, which artificially depresses reported net income figures.
Investors should instead focus on EV/EBITDA or adjusted cash flow metrics to better understand the underlying earning power of the business. Relying solely on P/E may lead to an overly pessimistic view of the company's valuation by ignoring the cash-generative potential of its core engineering and consulting operations.
Includes 30+ ratios · 3 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LGN stock.
Legence Corp. Class A Common stock's current P/E ratio is -79.8x. This places it at the 50th percentile of its historical range.
Legence Corp. Class A Common stock's current EV/EBITDA is 29.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.8x.
Legence Corp. Class A Common stock's return on equity (ROE) is -7.6%. The historical average is -7.6%.
Based on historical data, Legence Corp. Class A Common stock is trading at a P/E of -79.8x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Legence Corp. Class A Common stock has 21.0% gross margin and 3.6% operating margin.
Legence Corp. Class A Common stock's Debt/EBITDA ratio is 4.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.