Legence Corp. Class A Common stock (LGN)

FairStock Score: 24/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Legence provides engineering, installation, and maintenance for mission-critical building systems. Revenue has grown quickly: from $1.6 billion in fiscal 2023 (period ended 2023-12-31) to $2.1 billion in fiscal 2024 (period ended 2024-12-31) and $2.6 billion in fiscal 2025 (period ended 2025-12-31). But profits have not followed. It lost $46.0 million, $28.6 million, and $59.8 million in those three years. In the quarter ended 2026-06-30, revenue was $1.3 billion and net loss was $27.8 million, with diluted EPS of -$0.37. The quarter ended 2026-03-31 did show $16.1 million of net income, so results are volatile. FairStock calculations put the P/E at -149.41, price-to-book at 6.12, ROE at -12.43%, ROCE at 2.34%, debt-to-equity at 1.22, and EV/EBITDA at 90.26. Trailing free cash flow is $323.2 million, but the FCF yield is only 2.4%. The Altman Z-Score is 3.27 and Piotroski F-Score is 5/9. I want a durable competitive moat and consistent owner earnings. Legence may have scale and demand for mission-critical systems, but no profit history, high valuation, and modest cash yield leave little margin of safety. At $47.81 on 2026-10-13, the market is pricing in major future improvement. Until returns on capital and net income become consistent, this looks more speculative than Graham-style cheap.

In plain English: Legence designs, installs, and maintains heating, cooling, and other critical building systems in the United States. Revenue is growing, but the company has lost money in each of the last three years and again in the quarter ended June 30, 2026, so the business looks unproven on profits. At $47.81 on 2026-10-13, the price looks expensive compared with current earnings, cash flow, and accounting value; investors are paying for a much stronger future.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer