LIMBACH HOLDINGS INC (LMB) Stock Fundamental Analysis
NASDAQ:LMB - Nasdaq - US53263P1057 - Common Stock - Currency: USD
Taking everything into account, LMB scores 6 out of 10 in our fundamental rating. LMB was compared to 49 industry peers in the Construction & Engineering industry. LMB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LMB has a decent growth rate and is not valued too expensively. These ratings could make LMB a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year LMB was profitable.
LMB had a positive operating cash flow in the past year.
LMB had positive earnings in 4 of the past 5 years.
In multiple years LMB reported negative operating cash flow during the last 5 years.
1.2 Ratios
LMB has a better Return On Assets (8.10%) than 80.43% of its industry peers.
LMB has a better Return On Equity (18.48%) than 78.26% of its industry peers.
With an excellent Return On Invested Capital value of 12.77%, LMB belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LMB is below the industry average of 11.92%.
The last Return On Invested Capital (12.77%) for LMB is above the 3 year average (9.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 18.48% | ||
| ROIC | 12.77% |
ROA(3y)3.88%
ROA(5y)2.63%
ROE(3y)10.64%
ROE(5y)7.78%
ROIC(3y)9.02%
ROIC(5y)8.75%
1.3 Margins
LMB has a better Profit Margin (5.08%) than 71.74% of its industry peers.
LMB's Profit Margin has improved in the last couple of years.
The Operating Margin of LMB (6.35%) is better than 60.87% of its industry peers.
LMB's Operating Margin has improved in the last couple of years.
LMB has a Gross Margin of 25.88%. This is in the better half of the industry: LMB outperforms 78.26% of its industry peers.
In the last couple of years the Gross Margin of LMB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.35% | ||
| PM (TTM) | 5.08% | ||
| GM | 25.88% |
OM growth 3Y23.28%
OM growth 5Y98.73%
PM growth 3Y57.91%
PM growth 5YN/A
GM growth 3Y17.27%
GM growth 5Y16.28%
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.
The number of shares outstanding for LMB has been increased compared to 5 years ago.
Compared to 1 year ago, LMB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.54 indicates that LMB is not in any danger for bankruptcy at the moment.
LMB has a Altman-Z score of 5.54. This is amongst the best in the industry. LMB outperforms 84.78% of its industry peers.
The Debt to FCF ratio of LMB is 0.94, which is an excellent value as it means it would take LMB, only 0.94 years of fcf income to pay off all of its debts.
LMB has a Debt to FCF ratio of 0.94. This is amongst the best in the industry. LMB outperforms 86.96% of its industry peers.
LMB has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
LMB has a Debt to Equity ratio of 0.14. This is in the better half of the industry: LMB outperforms 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 5.54 |
ROIC/WACC1.27
WACC10.07%
2.3 Liquidity
LMB has a Current Ratio of 1.57. This is a normal value and indicates that LMB is financially healthy and should not expect problems in meeting its short term obligations.
LMB has a Current ratio of 1.57. This is in the better half of the industry: LMB outperforms 65.22% of its industry peers.
LMB has a Quick Ratio of 1.57. This is a normal value and indicates that LMB is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.57, LMB is doing good in the industry, outperforming 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
LMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.18%, which is quite impressive.
Measured over the past years, LMB shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.22% on average per year.
The Revenue has been growing slightly by 0.12% in the past year.
LMB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.13% yearly.
EPS 1Y (TTM)30.18%
EPS 3Y35.22%
EPS 5YN/A
EPS Q2Q%1.64%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y-3.14%
Revenue growth 5Y-1.13%
Sales Q2Q%4.81%
3.2 Future
LMB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.10% yearly.
The Revenue is expected to grow by 7.81% on average over the next years.
EPS Next Y45.51%
EPS Next 2Y35.48%
EPS Next 3Y27.39%
EPS Next 5Y24.1%
Revenue Next Year4.26%
Revenue Next 2Y8.97%
Revenue Next 3Y7.82%
Revenue Next 5Y7.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.42, the valuation of LMB can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LMB is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.63. LMB is valued slightly more expensive when compared to this.
LMB is valuated rather expensively with a Price/Forward Earnings ratio of 24.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMB is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LMB to the average of the S&P500 Index (22.68), we can say LMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 24.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LMB.
LMB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.61 | ||
| EV/EBITDA | 20.89 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LMB may justify a higher PE ratio.
LMB's earnings are expected to grow with 27.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y35.48%
EPS Next 3Y27.39%
5. Dividend
5.1 Amount
No dividends for LMB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
80.13
-3.22 (-3.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.35%
Inst Owner Change0.03%
Ins Owners5.35%
Ins Owner Change0.58%
Market Cap903.07M
Analysts82.86
Price Target120.7 (50.63%)
Short Float %5.56%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.81%
Min EPS beat(2)15.82%
Max EPS beat(2)33.8%
EPS beat(4)4
Avg EPS beat(4)36.23%
Min EPS beat(4)8.91%
Max EPS beat(4)86.37%
EPS beat(8)8
Avg EPS beat(8)107.8%
EPS beat(12)11
Avg EPS beat(12)89.98%
EPS beat(16)13
Avg EPS beat(16)60.47%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)2.39%
Revenue beat(4)2
Avg Revenue beat(4)1.65%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)9.2%
Revenue beat(8)5
Avg Revenue beat(8)0.81%
Revenue beat(12)5
Avg Revenue beat(12)-0.83%
Revenue beat(16)7
Avg Revenue beat(16)-1.03%
PT rev (1m)2.17%
PT rev (3m)49.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.8%
EPS NY rev (1m)0%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 24.52 | ||
| P/S | 1.74 | ||
| P/FCF | 36.61 | ||
| P/OCF | 28.76 | ||
| P/B | 6.35 | ||
| P/tB | 10.25 | ||
| EV/EBITDA | 20.89 |
EPS(TTM)2.2
EY2.75%
EPS(NY)3.27
Fwd EY4.08%
FCF(TTM)2.19
FCFY2.73%
OCF(TTM)2.79
OCFY3.48%
SpS45.95
BVpS12.62
TBVpS7.82
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 18.48% | ||
| ROCE | 17.65% | ||
| ROIC | 12.77% | ||
| ROICexc | 17.6% | ||
| ROICexgc | 29.36% | ||
| OM | 6.35% | ||
| PM (TTM) | 5.08% | ||
| GM | 25.88% | ||
| FCFM | 4.76% |
ROA(3y)3.88%
ROA(5y)2.63%
ROE(3y)10.64%
ROE(5y)7.78%
ROIC(3y)9.02%
ROIC(5y)8.75%
ROICexc(3y)12.75%
ROICexc(5y)12.43%
ROICexgc(3y)19.69%
ROICexgc(5y)18.1%
ROCE(3y)12.47%
ROCE(5y)12.1%
ROICexcg growth 3Y15.08%
ROICexcg growth 5Y88.89%
ROICexc growth 3Y6.11%
ROICexc growth 5Y83.78%
OM growth 3Y23.28%
OM growth 5Y98.73%
PM growth 3Y57.91%
PM growth 5YN/A
GM growth 3Y17.27%
GM growth 5Y16.28%
F-Score7
Asset Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 62.6% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 17.85 | ||
| Cash Conversion | 71.99% | ||
| Profit Quality | 93.86% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 5.54 |
F-Score7
WACC10.07%
ROIC/WACC1.27
Cap/Depr(3y)17.63%
Cap/Depr(5y)23.83%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.18%
EPS 3Y35.22%
EPS 5YN/A
EPS Q2Q%1.64%
EPS Next Y45.51%
EPS Next 2Y35.48%
EPS Next 3Y27.39%
EPS Next 5Y24.1%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y-3.14%
Revenue growth 5Y-1.13%
Sales Q2Q%4.81%
Revenue Next Year4.26%
Revenue Next 2Y8.97%
Revenue Next 3Y7.82%
Revenue Next 5Y7.81%
EBIT growth 1Y17.78%
EBIT growth 3Y19.41%
EBIT growth 5Y96.48%
EBIT Next Year110.34%
EBIT Next 3Y41.3%
EBIT Next 5YN/A
FCF growth 1Y67.8%
FCF growth 3Y12.85%
FCF growth 5Y20.78%
OCF growth 1Y102.19%
OCF growth 3Y12.94%
OCF growth 5Y17.77%