Unraveling the Future of Limbach Holdings Inc: A Deep Dive into Key Metrics
Long-established in the Construction industry, Limbach Holdings Inc (NASDAQ:LMB) has enjoyed a stellar reputation. However, it has recently witnessed a decline of 10.13%, juxtaposed with a three-month change of 53.7%. Fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Limbach Holdings Inc.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
1. Financial strength rank: 8/10
2. Profitability rank: 6/10
3. Growth rank: 4/10
4. GF Value rank: 1/10
5. Momentum rank: 3/10
Based on the above method, GuruFocus assigned Limbach Holdings Inc the GF Score of 63 out of 100, which signals poor future outperformance potential.
Understanding Limbach Holdings Inc's Business
Limbach Holdings Inc is a commercial specialty contractor in the fields of heating, ventilation, air conditioning, plumbing, electrical, and building controls for the design and construction of new and renovated buildings, maintenance services, energy retrofits, and equipment upgrades. It operates in two segments namely General Contractor Relationships (GCR) and Owner Direct Relationships (ODR). The company generates maximum revenue from the GCR segment. With a market cap of $356.4 million and sales of $511.73 million, the company has an operating margin of 4.96%.
Growth Prospects
A lack of significant growth is another area where Limbach Holdings Inc seems to falter, as evidenced by the company's low Growth rank. The company's revenue has declined by -13.6 per year over the past three years, which underperforms worse than 83.44% of 1546 companies in the Construction industry. Stagnating revenues may pose concerns in a fast-evolving market.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. While Limbach Holdings Inc has a rich history in the construction industry, its current metrics suggest that it may struggle to maintain its past performance. Investors should consider these factors when making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
