Legence (FRA:OO6) Financial Strength: 4 (As of Jun. 2026) — Near Median

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FRA:OO6 Legence Corp FRA:OO6
18 GF Score
Price €44.80
! 2 Warning Signs
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What is Legence Financial Strength?

Legence FRA:OO6 -0.44% 18 Financial Strength is 4 as of Jun. 2026, which is at its 10-year median of 4.00. GuruFocus rates FRA:OO6 with a GF Score™ of 18/100. The stock has 2 warning signs investors should review.

Legence has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Legence's Interest Coverage for the quarter that ended in Jun. 2026 was 2.05. Legence's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.24. As of today, Legence's Altman Z-Score is 1.98.


Legence  (FRA:OO6) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Legence has the Financial Strength Rank of 4.


Legence Financial Strength Related Terms


FRA:OO6 vs PRIM, MYRG, TPC: Financial Strength Comparison

For the Engineering & Construction subindustry, Legence's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Construction Industry

For the Construction industry and Industrials sector, Legence's Financial Strength distribution charts can be found below:

* The bar in red indicates where Legence's Financial Strength falls into.


FRA:OO6
18GF Score
Legence Corp FRA:OO6
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Legence Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Legence's Interest Expense for the months ended in Jun. 2026 was €-15 Mil. Its Operating Income for the months ended in Jun. 2026 was €30 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €988 Mil.

Legence's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*30.092/-14.679
=2.05

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Legence's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(49.657 + 988.096) / 4382.104
=0.24

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Legence has a Z-score of 1.98, indicating it is in Grey Zones. This implies that Legence is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.98 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 4 mean?
Legence (FRA:OO6) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Legence and its competitors. This is near median its historical median of 4.00. Over the past decade, Legence's Financial Strength has ranged from 4.00 to 4.00.
Is Legence's Financial Strength too high?
Legence's current Financial Strength of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 4.00. Overall, Legence has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Legence's Financial Strength compare to PRIM and MYRG?
Legence's Financial Strength of 4 can be compared against companies in the Construction industry. Historically, Legence's own Financial Strength has ranged from 4.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Construction company?
A good Financial Strength depends on the Construction industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Legence and its competitors. Legence's current Financial Strength is 4, which is near median its own 10-year median of 4.00. 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 (FRA:OO6) has a current Financial Strength of 4. The current Financial Strength is 4, which is near median its 10-year median of 4.00. Legence's overall GF Score™ is 18/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Legence (FRA:OO6), the current Financial Strength is 4 as of Jun. 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 LGN:USA
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.
18GF Score

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

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