LGN (Legence) Beneish M-Score: -2.17 (As of Sep. 09, 2026)

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LGN Legence Corp LGN
14 GF Score
Price $55.96
! 2 Warning Signs
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What is Legence Beneish M-Score?

Legence LGN -1.90% 14 Beneish M-Score is -2.17 as of Sep. 09, 2026. GuruFocus rates LGN with a GF Score™ of 14/100. The stock has 2 warning signs investors should review. Among 1,709 Construction companies, Legence ranks worse than 68.4% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Legence's Beneish M-Score or its related term are showing as below:

LGN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.69   Med: -2.17   Max: -2.11
Current: -2.17

During the past 4 years, the highest Beneish M-Score of Legence was -2.11. The lowest was -2.69. And the median was -2.17.

Legence Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Legence's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Legence Beneish M-Score Chart

Legence Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 0.00 -2.69

Legence Quarterly Data
Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 -2.69 -2.11 -2.17

LGN vs PRIM, MYRG, TPC: Beneish M-Score Comparison

For the Engineering & Construction subindustry, Legence's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Legence Beneish M-Score vs Construction Industry

For the Construction industry and Industrials sector, Legence's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Legence's Beneish M-Score falls into.


LGN
14GF Score
Legence Corp LGN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Legence Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Legence for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0945+0.528 * 1.1374+0.404 * 0.8304+0.892 * 1.6919+0.115 * 1.1952
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0085+4.679 * -0.087792-0.327 * 1.0151
=-2.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun26) TTM:Last Year (Jun25) TTM:
Total Receivables was $1,301 Mil.
Revenue was 1262.127 + 1037.893 + 737.642 + 708.006 = $3,746 Mil.
Gross Profit was 220.231 + 186.154 + 147.488 + 148.059 = $702 Mil.
Total Current Assets was $1,648 Mil.
Total Assets was $3,740 Mil.
Property, Plant and Equipment(Net PPE) was $284 Mil.
Depreciation, Depletion and Amortization(DDA) was $143 Mil.
Selling, General, & Admin. Expense(SGA) was $464 Mil.
Total Current Liabilities was $1,225 Mil.
Long-Term Debt & Capital Lease Obligation was $1,138 Mil.
Net Income was -27.841 + 16.094 + -32.721 + -0.576 = $-45 Mil.
Non Operating Income was -43.144 + -13.538 + -42.454 + -6.418 = $-106 Mil.
Cash Flow from Operations was 74.382 + 120.112 + 94.749 + 99.582 = $389 Mil.
 Total Receivables was $703 Mil.
Revenue was 598.89 + 505.953 + 548.215 + 560.804 = $2,214 Mil.
Gross Profit was 128.674 + 111.704 + 112.941 + 118.546 = $472 Mil.
Total Current Assets was $839 Mil.
Total Assets was $2,426 Mil.
Property, Plant and Equipment(Net PPE) was $175 Mil.
Depreciation, Depletion and Amortization(DDA) was $117 Mil.
Selling, General, & Admin. Expense(SGA) was $272 Mil.
Total Current Liabilities was $514 Mil.
Long-Term Debt & Capital Lease Obligation was $996 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1301.097 / 3745.668) / (702.634 / 2213.862)
=0.34736 / 0.317379
=1.0945

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(471.865 / 2213.862) / (701.932 / 3745.668)
=0.213141 / 0.187398
=1.1374

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1648.176 + 283.948) / 3739.689) / (1 - (838.674 + 175.255) / 2426.078)
=0.483346 / 0.582071
=0.8304

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=3745.668 / 2213.862
=1.6919

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(116.649 / (116.649 + 175.255)) / (142.633 / (142.633 + 283.948))
=0.399614 / 0.334363
=1.1952

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(464.386 / 3745.668) / (272.166 / 2213.862)
=0.123979 / 0.122937
=1.0085

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1138.359 + 1224.667) / 3739.689) / ((996.176 + 513.949) / 2426.078)
=0.631878 / 0.622455
=1.0151

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-45.044 - -105.554 - 388.825) / 3739.689
=-0.087792

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Legence has a M-score of -2.17 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.17 mean?
Legence (LGN) has a Beneish M-Score of -2.17 as of Sep. 09, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Legence and its competitors. According to the industry distribution chart, Legence ranks #1169 out of 1709 companies in the Construction industry, placing it in the top 68.4%.
Is Legence's Beneish M-Score too high?
Legence's current Beneish M-Score is -2.17. Based on the distribution chart, Legence ranks #1169 out of 1709 companies in the Construction industry, which is below the industry midpoint. Overall, Legence has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Legence's Beneish M-Score compare to PRIM and MYRG?
According to the Construction industry distribution chart, Legence ranks #1169 out of 1709 companies for Beneish M-Score. This places Legence in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Construction company?
A good Beneish M-Score depends on the Construction industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Legence and its competitors. Legence's current Beneish M-Score is -2.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legence stock overvalued right now?
Legence (LGN) has a current Beneish M-Score of -2.17. The current Beneish M-Score is -2.17. Legence's overall GF Score™ is 14/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Legence (LGN), the current Beneish M-Score is -2.17 as of Sep. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Legence Business Description

Other Exchanges OO6:Germany
Address 1601 Las Plumas Avenue, San Jose, CA, USA, 95133
Legence Corp is a provider of engineering, installation, and maintenance services for critical systems in buildings. It focuses on sectors that have technically demanding buildings, including technology, life sciences, healthcare, and education. Legence specializes in designing, fabricating, and installing complex heating, ventilation, and air conditioning (HVAC), process piping, and other mechanical, electrical, and plumbing (MEP) systems for new facilities and upgrading HVAC, lighting, and building controls in existing facilities to enhance building performance, reliability, and efficiency. The services are mainly provided on a fixed price basis. The company has two reportable segments: Installation and Maintenance, which generates the maximum revenue, and Engineering and Consulting.
14GF Score

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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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