Overall LMB gets a fundamental rating of 6 out of 10. We evaluated LMB against 55 industry peers in the Construction & Engineering industry. LMB has an excellent profitability rating, but there are some minor concerns on its financial health. LMB has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

LMB had positive earnings in the past year.
In the past year LMB had a positive cash flow from operations.
LMB had positive earnings in each of the past 5 years.
LMB had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 8.95%, LMB is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
LMB has a better Return On Equity (20.16%) than 70.91% of its industry peers.
LMB's Return On Invested Capital of 13.16% is fine compared to the rest of the industry. LMB outperforms 76.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LMB is below the industry average of 15.97%.
The last Return On Invested Capital (13.16%) for LMB is above the 3 year average (11.70%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	8.95%
ROE	20.16%
ROIC	13.16%

ROA(3y)5.96%

ROA(5y)4.52%

ROE(3y)14.8%

ROE(5y)12.57%

ROIC(3y)11.7%

ROIC(5y)10.88%

1.3 Margins

The Profit Margin of LMB (6.06%) is better than 69.09% of its industry peers.
In the last couple of years the Profit Margin of LMB has grown nicely.
With a Operating Margin value of 7.44%, LMB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of LMB has grown nicely.
With a decent Gross Margin value of 27.30%, LMB is doing good in the industry, outperforming 78.18% of the companies in the same industry.
LMB's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	7.44%
PM (TTM)	6.06%
GM	27.3%

OM growth 3Y37.65%

OM growth 5Y38.44%

PM growth 3Y63.32%

PM growth 5YN/A

GM growth 3Y16.66%

GM growth 5Y16.44%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LMB is creating some value.
LMB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LMB has more shares outstanding
Compared to 1 year ago, LMB has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 4.83 indicates that LMB is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.83, LMB is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of LMB is 1.92, which is an excellent value as it means it would take LMB, only 1.92 years of fcf income to pay off all of its debts.
LMB has a better Debt to FCF ratio (1.92) than 78.18% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that LMB is not too dependend on debt financing.
The Debt to Equity ratio of LMB (0.31) is better than 69.09% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.31
Debt/FCF	1.92
Altman-Z	4.83

ROIC/WACC1.3

WACC10.09%

2.3 Liquidity

A Current Ratio of 1.43 indicates that LMB should not have too much problems paying its short term obligations.
LMB has a better Current ratio (1.43) than 67.27% of its industry peers.
A Quick Ratio of 1.43 indicates that LMB should not have too much problems paying its short term obligations.
LMB has a Quick ratio of 1.43. This is in the better half of the industry: LMB outperforms 72.73% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.43
Quick Ratio	1.43

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 38.18% over the past year.
LMB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.92% yearly.
The Revenue has grown by 16.56% in the past year. This is quite good.
LMB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.28% yearly.

EPS 1Y (TTM)38.18%

EPS 3Y55.97%

EPS 5Y45.92%

EPS Q2Q%17.74%

Revenue 1Y (TTM)16.56%

Revenue growth 3Y1.89%

Revenue growth 5Y-1.28%

Sales Q2Q%37.83%

3.2 Future

LMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.12% yearly.
The Revenue is expected to grow by 13.81% on average over the next years. This is quite good.

EPS Next Y26.71%

EPS Next 2Y19.15%

EPS Next 3Y18.12%

EPS Next 5YN/A

Revenue Next Year25.35%

Revenue Next 2Y19.27%

Revenue Next 3Y13.81%

Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 26.78, LMB can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of LMB indicates a somewhat cheap valuation: LMB is cheaper than 74.55% of the companies listed in the same industry.
LMB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
LMB is valuated rather expensively with a Price/Forward Earnings ratio of 22.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMB indicates a rather cheap valuation: LMB is cheaper than 83.64% of the companies listed in the same industry.
LMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	26.78
Fwd PE	22.23

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LMB is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LMB indicates a somewhat cheap valuation: LMB is cheaper than 70.91% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	29.62
EV/EBITDA	16.21

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LMB may justify a higher PE ratio.
LMB's earnings are expected to grow with 18.12% in the coming years. This may justify a more expensive valuation.