LIMBACH HOLDINGS INC (LMB) Stock Fundamental Analysis
NASDAQ:LMB - Nasdaq - US53263P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LMB. LMB was compared to 50 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 is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, LMB could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year LMB was profitable.
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
LMB's Return On Assets of 8.10% is fine compared to the rest of the industry. LMB outperforms 78.00% of its industry peers.
With a decent Return On Equity value of 18.48%, LMB is doing good in the industry, outperforming 72.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.33%, LMB belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
LMB had an Average Return On Invested Capital over the past 3 years of 11.70%. This is in line with the industry average of 12.22%.
The 3 year average ROIC (11.70%) for LMB is below the current ROIC(13.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 18.48% | ||
| ROIC | 13.33% |
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
LMB's Profit Margin of 5.08% is fine compared to the rest of the industry. LMB outperforms 72.00% of its industry peers.
LMB's Profit Margin has improved in the last couple of years.
LMB has a better Operating Margin (6.35%) than 62.00% of its industry peers.
LMB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.88%, LMB is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
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 3Y37.65%
OM growth 5Y38.44%
PM growth 3Y63.32%
PM growth 5YN/A
GM growth 3Y16.66%
GM growth 5Y16.44%
2. Health
2.1 Basic Checks
LMB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
LMB has an Altman-Z score of 7.05. This indicates that LMB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LMB (7.05) is better than 92.00% 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 better Debt to FCF ratio (0.94) than 82.00% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that LMB is not too dependend on debt financing.
The Debt to Equity ratio of LMB (0.14) is better than 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 7.05 |
ROIC/WACC1.42
WACC9.38%
2.3 Liquidity
A Current Ratio of 1.57 indicates that LMB should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.57, LMB is doing good in the industry, outperforming 76.00% of the companies in the same industry.
A Quick Ratio of 1.57 indicates that LMB should not have too much problems paying its short term obligations.
LMB has a Quick ratio of 1.57. This is amongst the best in the industry. LMB outperforms 84.00% of its industry peers.
| 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 42.33%, 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 45.92% on average per year.
LMB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
LMB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.28% yearly.
EPS 1Y (TTM)42.33%
EPS 3Y55.97%
EPS 5Y45.92%
EPS Q2Q%75%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y1.89%
Revenue growth 5Y-1.28%
Sales Q2Q%11.88%
3.2 Future
Based on estimates for the next years, LMB will show a very strong growth in Earnings Per Share. The EPS will grow by 20.77% on average per year.
The Revenue is expected to grow by 10.61% on average over the next years. This is quite good.
EPS Next Y27.03%
EPS Next 2Y20.47%
EPS Next 3Y20.77%
EPS Next 5YN/A
Revenue Next Year16.57%
Revenue Next 2Y11.24%
Revenue Next 3Y10.61%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
LMB is valuated quite expensively with a Price/Earnings ratio of 39.20.
Compared to the rest of the industry, the Price/Earnings ratio of LMB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.12, LMB is valued quite expensively.
With a Price/Forward Earnings ratio of 32.03, LMB can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LMB is on the same level as its industry peers.
LMB is valuated expensively when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.2 | ||
| Fwd PE | 32.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LMB indicates a slightly more expensive valuation: LMB is more expensive than 68.00% of the companies listed in the same industry.
LMB's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. LMB is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.5 | ||
| EV/EBITDA | 31.44 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of LMB may justify a higher PE ratio.
A more expensive valuation may be justified as LMB's earnings are expected to grow with 20.77% in the coming years.
PEG (NY)1.45
PEG (5Y)0.85
EPS Next 2Y20.47%
EPS Next 3Y20.77%
5. Dividend
5.1 Amount
LMB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
119.94
-0.5 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.35%
Inst Owner Change2.61%
Ins Owners5.35%
Ins Owner Change2.18%
Market Cap1.39B
Analysts82.5
Price Target109.14 (-9%)
Short Float %5.71%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)0%
PT rev (3m)-2.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.2 | ||
| Fwd PE | 32.03 | ||
| P/S | 2.69 | ||
| P/FCF | 56.5 | ||
| P/OCF | 44.39 | ||
| P/B | 9.8 | ||
| P/tB | 15.82 | ||
| EV/EBITDA | 31.44 |
EPS(TTM)3.06
EY2.55%
EPS(NY)3.74
Fwd EY3.12%
FCF(TTM)2.12
FCFY1.77%
OCF(TTM)2.7
OCFY2.25%
SpS44.56
BVpS12.24
TBVpS7.58
PEG (NY)1.45
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 18.48% | ||
| ROCE | 17.65% | ||
| ROIC | 13.33% | ||
| ROICexc | 18.38% | ||
| ROICexgc | 30.66% | ||
| OM | 6.35% | ||
| PM (TTM) | 5.08% | ||
| GM | 25.88% | ||
| FCFM | 4.76% |
ROA(3y)5.96%
ROA(5y)4.52%
ROE(3y)14.8%
ROE(5y)12.57%
ROIC(3y)11.7%
ROIC(5y)10.88%
ROICexc(3y)16.68%
ROICexc(5y)15.45%
ROICexgc(3y)28.73%
ROICexgc(5y)24.46%
ROCE(3y)15.48%
ROCE(5y)14.4%
ROICexcg growth 3Y47.36%
ROICexcg growth 5Y35.34%
ROICexc growth 3Y29.63%
ROICexc growth 5Y24.1%
OM growth 3Y37.65%
OM growth 5Y38.44%
PM growth 3Y63.32%
PM growth 5YN/A
GM growth 3Y16.66%
GM growth 5Y16.44%
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 | 7.05 |
F-Score7
WACC9.38%
ROIC/WACC1.42
Cap/Depr(3y)34.3%
Cap/Depr(5y)28.03%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.5%
Profit Quality(3y)288.62%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.33%
EPS 3Y55.97%
EPS 5Y45.92%
EPS Q2Q%75%
EPS Next Y27.03%
EPS Next 2Y20.47%
EPS Next 3Y20.77%
EPS Next 5YN/A
Revenue 1Y (TTM)0.47%
Revenue growth 3Y1.89%
Revenue growth 5Y-1.28%
Sales Q2Q%11.88%
Revenue Next Year16.57%
Revenue Next 2Y11.24%
Revenue Next 3Y10.61%
Revenue Next 5YN/A
EBIT growth 1Y17.78%
EBIT growth 3Y40.25%
EBIT growth 5Y36.67%
EBIT Next Year101.33%
EBIT Next 3Y36.09%
EBIT Next 5YN/A
FCF growth 1Y-54.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-43.78%
OCF growth 3YN/A
OCF growth 5YN/A