Latest Ratios: P/E Ratio -53.1x · EV/EBITDA 20.9x · 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 | $3.6B | $2.6B | — | — |
| Enterprise Value | $4.3B | $3.3B | — | — |
| P/E Ratio → | -53.08 | — | — | — |
| P/S Ratio | 1.42 | 1.00 | — | — |
| P/B Ratio | 4.04 | 3.24 | — | — |
| P/FCF | 16.49 | 11.67 | — | — |
| P/OCF | 14.05 | 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 | 20.91 | 15.83 | — | — |
| EV / EBIT | 46.64 | 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 | 6.1% | 8.6% | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $59M | $59M | $59M |
Includes 30+ ratios · 3 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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 -53.1x. This places it at the 50th percentile of its historical range.
Legence Corp. Class A Common stock's current EV/EBITDA is 20.9x. 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 -53.1x. 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.
Key Metrics
Top Statement Risk
Profitability lagging rapid revenue growth
Metrics are mathematically derived from official filings.
Growth Premium vs. Profitability Discount
LGN's forward P/E of 43.05 and EV/EBITDA of 16.75 reflect a significant growth premium, yet its negative TTM P/E of -53.04 and net margin of -2.3% suggest the market is pricing in a future profitability inflection that has not yet materialized.
The valuation multiples appear to be pricing in the company's 21.53% YoY revenue growth and its positioning in high-growth verticals like data centers. However, the disconnect between the forward P/E and the negative trailing earnings indicates that investors are betting on a rapid margin expansion that is not yet evident in the financials. Compared to peers like Tetra Tech (TTEK) with a P/E of 38.86 and a 4.6% net margin, LGN's valuation is predicated on a much more aggressive turnaround in profitability.
Gross Margin Erosion Undermines Operating Leverage
Gross margins have compressed from 22.1% in Q1 2025 to 14.4% in Q2 2026, a 770 basis point decline that appears to be driven by a shift in revenue mix toward lower-margin installation projects, severely limiting the company's ability to generate operating leverage.
The operating margin of 2.7% in Q2 2026 is insufficient to cover the company's non-operating expenses, resulting in a net loss. This margin profile suggests that the current hyper-growth phase is not yet translating into bottom-line profitability, as the cost of revenue is scaling faster than the top line. The trend indicates that the company's competitive advantage in engineering may be diluted by the lower-margin, higher-volume installation work that is currently driving revenue growth.
Minimal Returns on Invested Capital
ROIC has remained below 2% for the past six quarters, with a Q2 2026 reading of 1.4%, indicating that the company's aggressive acquisition-fueled expansion is not yet generating meaningful returns on the capital deployed.
The persistently low ROIC, especially when compared to peers like IES Holdings (IESC) with a 37.5% ROIC, suggests that LGN's capital allocation strategy is currently in a value-destroying phase. The negative ROE of -2.9% in Q2 2026 further confirms that shareholders are not earning a positive return on their equity. This trend warrants monitoring to see if the company can eventually scale its operations to generate returns that exceed its cost of capital.
Debt-Funded Growth Strains Interest Coverage
With a Debt/EBITDA ratio of 15.16 and interest coverage of just 2.01x in Q2 2026, the company's debt serviceability appears constrained, suggesting that its acquisition-driven growth strategy is heavily reliant on external financing.
The high Debt/EBITDA multiple indicates that the company's earnings power is not yet sufficient to comfortably service its debt load. The interest coverage ratio of 2.01x, while positive, leaves a thin margin of safety, especially given the volatility in operating income. This leverage profile, combined with the negative net margin, suggests that the company's financial flexibility is limited and could be vulnerable to a downturn in its end markets or a rise in interest rates.
Adequate Liquidity Masked by Working Capital Volatility
The current ratio of 1.35 in Q2 2026 indicates an adequate liquidity position, but the dramatic swings in working capital, such as the $49.2M outflow in Q2 2026, suggest that cash flow is highly project-dependent and could become strained under stress.
While the company maintains a current ratio above 1.0, the quick ratio is identical at 1.35, indicating no inventory cushion. The volatility in the cash conversion cycle, with DSO at 77 days, highlights the lumpy nature of cash collections in a project-based business. This liquidity profile appears sufficient for normal operations but may not provide a robust buffer if project delays or payment slowdowns occur.
The Misleading Power of the P/E Ratio
The most commonly misapplied ratio for LGN is the P/E ratio, which is currently negative and uninformative, obscuring the company's cash-generating ability and growth trajectory in favor of a distorted view of its accounting losses.
For a high-growth, acquisition-driven company like LGN, the P/E ratio is misleading because it is heavily influenced by non-cash charges such as acquisition-related amortization and stock-based compensation. The negative TTM P/E of -53.04 suggests a value-destroying business, yet the company's operating cash flow consistently exceeds its net income, with a Q2 2026 OCF of $74.4M. A more appropriate metric for evaluating LGN's performance would be EV/EBITDA or Price/Sales, which better reflect its operational scale and growth potential without the distortion of its capital structure and accounting choices.