Limbach Holdings, Inc.

LMB

Construction - Special Trade Contractors

Mkt Cap

$652.1M

PE

25.73

Debt

$21.89M

Cash

$48.3M

EV

$625.7M

FCF

$40.17M

Market Cap

$652.1M

P/E Ratio

25.73

Debt

$21.89M

Cash

$48.3M

EV

$625.7M

FCF

$40.17M

Charts data: {"Earnings":[{"time":"2015-03-30","value":-325880},{"time":"2015-12-30","value":-339604},{"time":"2017-12-30","value":-944000},{"time":"2018-12-30","value":-3951000},{"time":"2019-12-30","value":-1775000},{"time":"2020-12-30","value":5807000},{"time":"2021-12-30","value":6714000},{"time":"2022-12-30","value":6799000},{"time":"2023-12-30","value":20754000}],"Sales":[{"time":"2015-03-30","value":0},{"time":"2015-12-30","value":0},{"time":"2017-12-30","value":485739000},{"time":"2018-12-30","value":546526000},{"time":"2019-12-30","value":553334000},{"time":"2020-12-30","value":568209000},{"time":"2021-12-30","value":490351000},{"time":"2022-12-30","value":496782000},{"time":"2023-12-30","value":516350000}],"Net Margins":[{"time":"2017-12-30","value":-0.0019434305254467934},{"time":"2018-12-30","value":-0.007229299246513432},{"time":"2019-12-30","value":-0.003207827460448843},{"time":"2020-12-30","value":0.010219831083280976},{"time":"2021-12-30","value":0.01369223270677535},{"time":"2022-12-30","value":0.013686083634270162},{"time":"2023-12-30","value":0.04019366708627869}],"Assets":[{"time":"2015-03-30","value":46374870},{"time":"2015-12-30","value":46199240},{"time":"2017-12-30","value":213020000},{"time":"2018-12-30","value":253634000},{"time":"2019-12-30","value":261617000},{"time":"2020-12-30","value":262157000},{"time":"2021-12-30","value":267512000},{"time":"2022-12-30","value":294556000},{"time":"2023-12-30","value":304439000}],"Stockholders Equity":[{"time":"2015-03-30","value":5147446},{"time":"2015-12-30","value":5000067},{"time":"2017-12-30","value":48160000},{"time":"2018-12-30","value":46368000},{"time":"2019-12-30","value":46870000},{"time":"2020-12-30","value":53732000},{"time":"2021-12-30","value":87838000},{"time":"2022-12-30","value":95442000},{"time":"2023-12-30","value":120915000}],"ROE":[{"time":"2015-03-30","value":-0.06330906628257975},{"time":"2015-12-30","value":-0.06791988987347569},{"time":"2017-12-30","value":-0.019601328903654486},{"time":"2018-12-30","value":-0.08520962732919254},{"time":"2019-12-30","value":-0.03787070620866226},{"time":"2020-12-30","value":0.10807340132509491},{"time":"2021-12-30","value":0.07643616657938478},{"time":"2022-12-30","value":0.07123698162234655},{"time":"2023-12-30","value":0.17164123557871233}],"ROA":[{"time":"2015-03-30","value":-0.00734475374270591},{"time":"2015-12-30","value":-0.008462779907201937},{"time":"2017-12-30","value":0.028250868463055114},{"time":"2018-12-30","value":0.004218677306670241},{"time":"2019-12-30","value":0.030835152149898515},{"time":"2020-12-30","value":0.0654378864573519},{"time":"2021-12-30","value":0.052296719399503575},{"time":"2022-12-30","value":0.04077323157565964},{"time":"2023-12-30","value":0.09619004135475416}]}

Limbach Holdings, Inc. operates as an integrated building systems solutions company in the United States. It operates in two segments, General Contractor Relationships and Owner Direct Relationships. The company engages in the design, prefabrication, installation, management, and maintenance of mechanical, electrical, plumbing, and control systems, as well as heating, ventilation, air-conditioning (HVAC) system. Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefabrication construction, and sustainable building solutions and practices. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers; sports arenas; cultural and entertainment facilities, and amusement rides and parks; and life sciences, including organizations and companies, whose work is centered around research and development focused on living things. The company was founded in 1901 and is headquartered in Warrendale, Pennsylvania.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
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6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
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6/30/21
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3/31/21
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12/31/20
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9/30/20
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6/30/20
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3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Limbach Holdings, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$40.17M	$52.22M	$66.44M	$82.68M	$100.6M	$119.6M	$138.9M	$157.4M	$174M	$187.5M	$196.9M	$1.969B
DCF		$45.41M	$50.24M	$54.36M	$57.52M	$59.46M	$60.04M	$59.16M	$56.88M	$53.31M	$48.67M	$486.7M
Value	$1.032B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 97%

Earnings Stability 12%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	07-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-	-	-0.19%	-0.72%	-0.32%	1%	1.4%	1.4%	4%	4.9%
ROA	-0.85%	-	2.8%	0.42%	3.1%	6.5%	5.2%	4.1%	9.6%	11%
ROE	-6.8%	-	-2%	-8.5%	-3.8%	11%	7.6%	7.1%	17%	20%

What is the average Net Margin?

The average Net Margin over the past 5 years is +1.12%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.83%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.83%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.36%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +5.07%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +4.51%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	07-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	-4.54	1.42	-14.49	1.12	-1.59	0.90	0.40	0.54
Debt Equity	-	-	0.70	0.65	1.11	0.80	0.45	0.33	0.18	0.17
MIN
Graham Stability	-	-	-	-	-	-	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.54.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.10.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	07-2016	12-2018	12-2020	12-2022	Trend
Revenue	-	-1.1%	-3.1%	3.9%	-1.7%
Net Income	-	-	53%	210%	95%
Stockholders Equity	-	21%	31%	27%	4.9%
FCF	-	21%	13%	60%	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -1.13%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.69%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +94.82%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +21.13%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +4.89%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +20.77%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.