
Legence Corp (LGN) Stock Forecast & Price Target
Legence Corp (LGN) Analyst Ratings
Bulls say
Legence Corp has demonstrated substantial revenue growth, achieving a compound annual growth rate (CAGR) of approximately 39% from 2021 to 2024, with core organic growth standing around 16%, underscoring its ability to expand beyond acquisitions. The company’s Engineering & Consulting segment has also shown remarkable financial progress, with revenues increasing from $329 million in 2022 to an anticipated $602 million in 2024, contributing significantly to overall revenue diversification. Additionally, a robust backlog of approximately $3.1 billion, primarily fueled by strong demand in critical sectors such as healthcare, technology, and government, alongside a solid book-to-bill ratio of 1.5x, bodes well for Legence’s future growth trajectory.
Bears say
Legence Corp's financial outlook appears negative due to a combination of factors, including a slight decline in free cash flow to $23.8 million and gross margins decreasing to 21.5%, attributed to project mix and rising input costs. The company's pro-forma debt stands at approximately $820 million, leading to a concerning net leverage ratio of around 3.0x Debt/EBITDA, which indicates financial strain despite improvement since its IPO. Additionally, operational challenges such as an inability to expand its US footprint, loss of key customers, competitive pressures, and macroeconomic risks related to construction activity further diminish growth prospects and financial stability.
This aggregate rating is based on analysts' research of Legence Corp and is not a guaranteed prediction by Public.com or investment advice.
Legence Corp (LGN) Analyst Forecast & Price Prediction
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