Taking everything into account, LMB scores 6 out of 10 in our fundamental rating. LMB was compared to 55 industry peers in the Construction & Engineering industry. LMB scores excellent on profitability, but there are some minor concerns on its financial health. LMB is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

LMB had positive earnings in the past year.
LMB had a positive operating cash flow in the past year.
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

LMB has a better Return On Assets (8.95%) than 72.73% of its industry peers.
With a decent Return On Equity value of 20.16%, LMB is doing good in the industry, outperforming 70.91% of the companies in the same industry.
LMB has a Return On Invested Capital of 13.16%. This is in the better half of the industry: LMB outperforms 76.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LMB is below the industry average of 15.97%.
The 3 year average ROIC (11.70%) for LMB is below the current ROIC(13.16%), indicating increased profibility in the last year.

		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.
LMB has a Operating Margin of 7.44%. This is comparable to the rest of the industry: LMB outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of LMB has grown nicely.
LMB has a better Gross Margin (27.30%) than 78.18% of its industry peers.
In the last couple of years the Gross Margin of LMB has grown nicely.

		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

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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.
Compared to 1 year ago, LMB has more shares outstanding
The number of shares outstanding for LMB has been increased compared to 5 years ago.
Compared to 1 year ago, LMB has a worse debt to assets ratio.

2.2 Solvency

LMB has an Altman-Z score of 4.84. This indicates that LMB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.84, LMB is doing good in the industry, outperforming 72.73% of the companies in the same industry.
LMB has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.92, LMB is doing good in the industry, outperforming 78.18% of the companies in the same industry.
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	4.84

ROIC/WACC1.26

WACC10.48%

2.3 Liquidity

LMB has a Current Ratio of 1.43. 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 Current ratio value of 1.43, LMB is doing good in the industry, outperforming 67.27% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that LMB should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.43, LMB is doing good in the industry, outperforming 72.73% of the companies in the same industry.

		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

LMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.18%, which is quite impressive.
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

Based on estimates for the next years, LMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.12% on average per year.
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

The Price/Earnings ratio is 26.88, which means the current valuation is very expensive for LMB.
LMB's Price/Earnings ratio is a bit cheaper when compared to the industry. LMB is cheaper than 72.73% of the companies in the same industry.
LMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
With a Price/Forward Earnings ratio of 22.31, LMB is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LMB is valued cheaply inside the industry as 83.64% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.83. LMB is around the same levels.

		Industry Rank	Sector Rank
PE	26.88
Fwd PE	22.31

4.2 Price Multiples

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

		Industry Rank	Sector Rank
P/FCF	29.73
EV/EBITDA	16.27

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LMB has a very decent profitability rating, which 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.