LBM
ConstructionValuation Breakdown
Construction and industrial firms have characteristics of both cyclical businesses (lumpy project-based revenue) and growth companies (expanding order books). This model blends two approaches 50/50: EV/EBITDA valuation (captures current earning power relative to peers) and FCF-based DCF (captures future cash generation potential). If EV/EBITDA produces a negative value (debt exceeds enterprise value), only DCF is used.
Valuation Track Record
Retroactive intrinsic value vs actual close price — LBM
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
LBM exhibits several concerning financial metrics that suggest potential earnings manipulation, particularly with a Beneish M-Score of -2.5507, well below the manipulation threshold of -1.78. While the earnings quality score is relatively strong at 70.6, the revenue quality score of 0.0 raises significant concerns about the sustainability of reported earnings.
- Beneish M-Score of -2.5507 indicates potential earnings manipulation, significantly below the threshold of -1.78.
- Revenue quality score of 0.0 suggests severe issues with revenue recognition practices.
- Earnings quality score of 70.6 indicates decent overall earnings quality, particularly strong cash conversion at 100.0.
The ownership structure is heavily concentrated, with 64.9% held by a single institutional investor, which may lead to governance risks and reduced oversight of management practices.
Investors should conduct further due diligence, particularly focusing on revenue recognition practices, and consider monitoring the company's financial disclosures closely before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for LBM — hover nodes for intel, click to navigate