Forensic Analysis · General / Diversified · as of Jun 27, 2026
Legence Corp. (LGN)
A forensic read on Legence Corp. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
1.0
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-6.2%
ROE
$8.7B
Market cap
Legence Corp. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 1.0, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
3%Return on invested capital.Return on invested capital is 3% and steady — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
3% of revStock-based comp load.Stock-based compensation ran 3% of revenue and 31% of free cash flow in FY2025. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
84d DSOReceivables vs revenue.Days sales outstanding moved from 78 to 84 days FY2024→FY2025 (receivables +30% vs revenue +22%). Receivables are creeping up relative to sales — watch the trend.
$48MGoodwill impairments.Took $48M of goodwill writedowns across 3 year(s) (FY2023 ($5M), FY2024 ($18M), FY2025 ($25M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-2.3%
Debt / Equity2.11x
Free Cash Flow$218.9M
Latest Revenue$2.55B
Return on Equity-15.2%
Revenue Growth YoY+21.5%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Legence Corp.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about LGN's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown