ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Limbach Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.86%.
As of today (2026-06-24), Limbach Holdings's WACC % is 15.89%. Limbach Holdings's ROIC % is 13.91% (calculated using TTM income statement data).
Limbach Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Limbach Holdings (NAS:LMB) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Limbach Holdings's WACC % is 15.89%. Limbach Holdings's ROIC % is 13.91% (calculated using TTM income statement data).
Limbach Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Limbach Holdings ROIC % Related Terms
Limbach Holdings ROIC % Historical Data
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The historical data trend for Limbach Holdings's ROIC % 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.
For the Building Products & Equipment subindustry, Limbach Holdings's ROIC %, along with its competitors' market caps and ROIC % 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.
Limbach Holdings ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Limbach Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Limbach Holdings's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Limbach Holdings (LMB) has a ROIC % of 1.86% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Limbach Holdings and its competitors.
Is Limbach Holdings' ROIC % too high?
Limbach Holdings' current ROIC % is 1.86%. The Construction industry median ROIC % is 4.65. Limbach Holdings' value of 1.86% is 60% below this industry median. Overall, Limbach Holdings has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Limbach Holdings' ROIC % compare to NX and APOG?
Limbach Holdings' ROIC % of 1.86% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. Limbach Holdings' value of 1.86% is 60% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Construction company?
The median ROIC % among Construction companies is 4.65, based on 1,755 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Limbach Holdings's current ROIC % of 1.86% is 60% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Limbach Holdings and its competitors. For the Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Limbach Holdings's current ROIC % is 1.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Limbach Holdings stock overvalued right now?
Based on GuruFocus' analysis, Limbach Holdings (LMB) is currently considered Fairly Valued. The stock's GF Value™ is $85.79, compared to a current price of $80.23 — trading 6.5% below its estimated fair value. The current ROIC % is 1.86% and 60% below the Construction industry median of 4.65. Limbach Holdings' overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Limbach Holdings (LMB), the current ROIC % is 1.86% as of Mar. 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.
Is Limbach Holdings (LMB) Overvalued in 2026?
Based on GuruFocus' analysis, Limbach Holdings stock appears to be undervalued.
The current stock price of $80.23 is trading 6.5% below its estimated GF Value™ of $85.79.
GuruFocus considers Limbach Holdings to be Fairly Valued.
Key valuation signals for LMB:
ROIC %: 1.86%
GF Value™: $85.79 vs. price of $80.23 (6.5% below fair value)
Industry Position: 60% below the Construction median
No single metric tells the full story. See the LMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Limbach Holdings Inc is a building systems solutions firm that designs, delivers, and maintains mechanical (heating, ventilation, and air conditioning), electrical, plumbing, and controls (MEPC) systems. The Company partners with owners and operators of facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets. It operates through two segments: Owner Direct Relationships (ODR), which generates maximum revenue and includes owner direct projects, maintenance, and service on MEPC systems; and General Contractor Relationships (GCR), which manages new construction or renovation projects involving MEPC systems awarded by general contractors or construction managers.
80GF Score
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