Legence Corp. — Earnings Quality Grade F
LGN · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 2 days, change +1 days YoY
AR growth 89.9% exceeds revenue growth 21.5%
Revenue 21.5%, CFFO 777.7%. Cash follows revenue
Expense Quality
Inventory 10.3% vs COGS 20.8%. Normal
CapEx growth 99.6% is >2x revenue growth 21.5%
SG&A/Gross Profit = 63.9%. Normal
Gross margin 21.0%, change +0.5pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $0.2B, FCF/NI = -3.66
Accruals ratio = -11.8%. Low accruals
Cash $0.2B covers only 20% of debt $1.2B
Balance Sheet Health
Goodwill+Intangibles $1.3B = 187% of equity. Over 50%
Debt/EBITDA = 7.2x (>4x). Interest coverage = 0.9x (<2x). Financial stress
Other assets grew 66.4% vs revenue 21.5%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -6% YoY. Normal
Manipulation Score
M-Score = -2.34 (< -2.22). Unlikely manipulator
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25