Limbach Holdings Inc. Common Stock (LMB)

FairStock Score: 64/100 — STEADY

Key Financials

Strengths

• Generates $25 million in annual free cash flow (2.2% yield on market cap)
• Strong Piotroski F-Score of 9/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 22.4% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.29, providing financial flexibility
• Altman Z-Score of 4.9 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($35) with negative 182% margin of safety—limited downside protection

AI Analysis

Limbach Holdings Inc. Common Stock is a micro-cap industrials company valued at $1.2 billion. The business generates $647 million in annual revenue with a 1.9% net margin and $25 million in free cash flow. From a quality standpoint, Limbach shows near-perfect Piotroski F-Score of 9/9 indicating exceptional financial health and healthy Altman Z-Score of 4.9. On valuation, the stock is trading at a premium 30.9x earnings, with trades far above its Graham Number ($35) with no margin of safety. Growth dynamics show revenue growing at 30.1% and profit growth of 25.0%. Our composite FairStock Score of 64/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Limbach's 30% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $25 million in annual free cash flow (2.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 31x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer