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Bowman Consulting Group (BWMN)
NASDAQ:BWMN
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Bowman Consulting Group
(NASDAQ:BWMN)
64Neutral
Positive Factors
Backlog Growth
The backlog at year-end stood at $399mn, representing a 30% year-over-year increase.
Earnings
Bowman reported a better-than-expected Q4: Adj. EBITDA of $17mn, which was 4% above consensus expectations.
Share Repurchase
Bowman repurchased $34.4mn in shares over 2024 and repurchased an additional $4.1mn after year end.
Negative Factors
Interest Rate Exposure
Revenue exposure to interest-rate sensitive buildings work is around 40%, which could pose risks for organic growth.
Market Uncertainty
The price objective was lowered to $30.50 from $36.50 to account for greater uncertainty in construction markets.
Bowman Consulting Group (BWMN) vs. S&P 500 (SPY)
Market Cap
$381.59M
Dividend YieldN/A
Average Volume (3M)111.57K
Price to Earnings (P/E)154.9
Beta (1Y)0.90
Revenue Growth23.19%
EPS GrowthN/A
CountryUS
Employees2,046
SectorIndustrials
Sector Strength78
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.14
Shares Outstanding17,337,090
10 Day Avg. Volume58,402
30 Day Avg. Volume111,571
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.47
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.51
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.40Price Target Upside47.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Bowman Consulting Group Business Overview & Revenue Model
Company DescriptionBowman Consulting Group Ltd. provides a range of real estate, energy, infrastructure, and environmental management solutions in the United States. It offers civil and site engineering services, such as conceptual land planning, environmental consulting and permitting, planning/zoning and entitlements, roadway and highway designs, erosion and sediment designs, stormwater management designs, construction administration, traffic studies, floodplain studies, and utility relocation designs; and commissioning and energy efficiency services comprise construction observation, direct systems functional performance testing, system development readiness checklist, post occupancy review, review of construction documents, deferred/seasonal functional testing, final commissioning report, and commissioning review of submittals. The company also provides construction management services, including constructability review, value engineering, budgeting and cost estimating, interagency and utility coordination, onsite observation and report evaluation, public communication and outreach, and resident engineer services, as well as bid solicitation, documentation, and preparation services; and environmental consulting services consisting of wetlands and waters of the U.S. delineations, natural resources inventories, wildlife and vegetation surveys, threatened and endangered species surveys, endangered species conservation and management, wetland creation and enhancement design, NEPA documentation, section 404/401 permitting and compliance, NPDES permitting, and phase I environmental site assessment. In addition, it offers landscape architecture, land procurement and right-of-way acquisition, structural engineering, surveying and geospatial engineering, and transportation and water resources engineering services, as well as mechanical, electrical, and plumbing engineering services. Bowman Consulting Group Ltd. was incorporated in 1995 and is headquartered in Reston, Virginia.
How the Company Makes MoneyBowman Consulting Group makes money through fees charged for its professional services, which include engineering design, land surveying, environmental consulting, and land planning. The company's revenue streams are primarily driven by contracts with clients in sectors such as residential and commercial real estate development, energy, and infrastructure. Bowman Consulting Group benefits from long-term relationships and recurring business with a diverse client base, ranging from private developers to government agencies. Strategic partnerships and collaborations with other firms can also play a role in expanding its service offerings and client reach, thereby contributing to its earnings.
Bowman Consulting Group Financial Statement Overview
Summary
Bowman Consulting Group has showcased impressive revenue growth and improved leverage over recent years. However, inconsistent profitability and fluctuating cash flow conversion ratios indicate underlying operational challenges. While the company is strengthening its financial position, attention to operational efficiency and stable profitability is needed for sustained growth.Income Statement
Revenue growth has been strong, rising from $113.7M in 2019 to $346.3M in 2023, showing a positive trend. However, the company has experienced fluctuating profitability with a negative EBIT margin in recent years, causing concern over operational efficiency. Gross profit margins have remained healthy but the net profit margin has been inconsistent due to volatility in net income.55
Neutral
Balance Sheet
The debt-to-equity ratio has improved over time, indicating better leverage management. Stockholders' equity has increased, strengthening the equity ratio. However, the overall return on equity has been inconsistent due to fluctuating net income, impacting investor returns.62
Positive
Cash Flow
Operating cash flow has shown consistent growth, indicating strong cash generation. Free cash flow has also increased, showing improved liquidity. However, the operating cash flow to net income ratio has been volatile, reflecting instability in converting income into cash flow.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 426.56M | 346.26M | 261.71M | 149.97M | 122.02M | Gross Profit |
| 222.80M | 176.03M | 135.13M | 75.44M | 55.51M | EBIT |
| -2.00M | -656.00K | 5.12M | -84.00K | 1.87M | EBITDA |
| 25.97M | 17.66M | 17.29M | 6.41M | 4.04M | Net Income Common Stockholders |
| 2.80M | -6.62M | 5.00M | 299.00K | 990.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.70M | 20.69M | 13.28M | 20.62M | 386.00K | Total Assets |
| 505.88M | 402.79M | 255.76M | 138.17M | 63.64M | Total Debt |
| 113.44M | 140.69M | 81.03M | 28.01M | 18.90M | Net Debt |
| 106.74M | 120.00M | 67.75M | 7.39M | 18.51M | Total Liabilities |
| 259.77M | 239.50M | 132.90M | 59.76M | 46.50M | Stockholders Equity |
| 246.12M | 163.28M | 122.86M | 78.41M | 17.14M |
| Cash Flow | Free Cash Flow | |||
| 23.68M | 9.63M | 8.27M | 3.81M | 9.43M | Operating Cash Flow |
| 24.30M | 11.72M | 9.17M | 4.72M | 10.77M | Investing Cash Flow |
| -27.47M | -27.16M | -18.75M | -21.53M | -2.41M | Financing Cash Flow |
| -10.82M | 22.84M | 2.25M | 37.05M | -8.48M |
Bowman Consulting Group Technical Analysis
Negative
22.01
Price Trends
21.81
Positive
23.53
Negative
24.43
Negative
Market Momentum
-0.04
Negative
48.95
Neutral
65.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWMN, the sentiment is Negative. The current price of 22.01 is above the 20-day moving average (MA) of 21.92, above the 50-day MA of 21.81, and below the 200-day MA of 24.43, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BWMN.
Bowman Consulting Group Risk Analysis
Bowman Consulting Group disclosed 55 risk factors in its most recent earnings report. Bowman Consulting Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bowman Consulting Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $573.07M | 25.03 | 10.40% | ― | 10.92% | 100.59% | |
70 Outperform | $248.16M | 104.24 | 2.25% | ― | 15.58% | ― | |
68 Neutral | $581.80M | 10.40 | 5.92% | ― | 28.76% | -9.56% | |
68 Neutral | $1.21B | 37.65 | 3.83% | ― | 9.90% | -32.50% | |
64 Neutral | $381.59M | 154.89 | 1.34% | ― | 23.19% | ― | |
63 Neutral | $4.21B | 11.55 | 5.28% | 250.72% | 4.13% | -9.42% | |
56 Neutral | $320.24M | ― | -20.38% | ― | -7.47% | -74.28% |
* Industrials Sector Average
Performance Comparison
BWMN
Bowman Consulting Group
22.01
-9.29
-29.68%
AMRC
Ameresco
11.06
-11.35
-50.65%
MTRX
Matrix Service Company
12.13
0.39
3.32%
ORN
Orion Group Holdings
6.51
-0.97
-12.97%
WLDN
Willdan Group
39.53
8.24
26.33%
NVEE
NV5 Holdings
18.43
-5.02
-21.41%
Bowman Consulting Group Earnings Call Summary
Earnings Call Date:Mar 11, 2025
(Q4-2024)
| % Change Since: 17.07%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenues and profits in 2024, backed by strategic acquisitions and a robust backlog. The outlook for 2025 is optimistic with increased guidance and anticipated growth across key markets. However, there are some challenges anticipated in emerging markets and interest rate-sensitive areas. Overall, the positive aspects significantly outweigh the challenges.Q4-2024 Updates
Positive Updates
Record Financial Performance
Achieved record net service billings, net income, adjusted EBITDA, and adjusted EBITDA margin for 2024. Fourth quarter gross revenue increased by 22% and net revenue by 23% compared to the previous year, exceeding consensus estimates.
Strong Cash Flow and Backlog
Generated operating cash flow that nearly doubled compared to the first nine months of 2024. Entered 2025 with a record backlog of $399 million, indicating strong future revenue visibility.
Successful Strategic Acquisitions
Completed eight strategic acquisitions in 2024 that expanded geographic reach and service offerings, enhancing expertise in areas like bridge design, utilities, and sustainability.
Improved Profitability
Restored GAAP profitability with net income increasing by $9.6 million to $3 million. Adjusted EBITDA for the year was $59.5 million, a 26.6% year-over-year increase.
Positive Outlook for 2025
Increased 2025 guidance with expected net revenues of $428 to $440 million and adjusted EBITDA between $70 and $76 million. Anticipate continued strong demand across transportation, power, and data center markets.
Negative Updates
Challenges in Emerging Markets
Expect growth rate for emerging markets to moderate in 2025 due to changes in aerial mapping and inventory categorization.
Interest Rate Sensitivity
Acknowledged some sensitivity in interest rate-affected areas, requiring project revamping to adjust to the current environment.
Company Guidance
The guidance provided during the call highlighted a strong financial performance for Bowman Consulting Group Ltd. in 2024, with record net service billings, net income, adjusted EBITDA, and adjusted EBITDA margin. The company achieved a gross revenue of $113 million in the fourth quarter, marking a 22% increase from the previous year, and a net revenue of $98.6 million, a 23% increase. Net income rose to $5.9 million, or $0.34 per share, from a net loss of $7.7 million the previous year. Adjusted EBITDA for the quarter was $17 million, with a 17.2% margin on net revenue. For the full year, gross revenue reached $426.6 million, a 23% increase year-over-year, with net income improving to $3 million. The company ended the year with a backlog of nearly $400 million, providing strong visibility for continued revenue growth into 2025. Bowman also increased its guidance for 2025, forecasting net revenues between $428 and $440 million and adjusted EBITDA between $70 and $76 million, aiming for sustained high teens margins.Bowman Consulting Group Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Bowman Consulting Appoints Virginia Grebbien as New Director
Positive
Apr 7, 2025
On April 3, 2025, Bowman Consulting Group Ltd. appointed Virginia L. Grebbien as a Class II director, filling a vacancy from a previous resignation. Grebbien, with over 30 years of experience in the water sector and a notable tenure at Parsons Corporation, will also serve on the Compensation and Nominating and Corporate Governance Committees starting May 23, 2025. Her extensive background in technology, natural resources, and public policy is expected to enhance Bowman’s strategic direction and governance, contributing to the company’s ongoing innovation and growth.
Spark’s Take on BWMN Stock
According to Spark, TipRanks’ AI Analyst, BWMN is a Neutral.
Bowman Consulting Group’s stock score of 61 reflects a company with strong revenue growth and a positive outlook for 2025, as detailed in the earnings call. However, concerns about inconsistent profitability, technical signals pointing to potential downward pressure, and valuation issues due to a negative P/E ratio temper the optimism. The combination of these factors results in a moderate score, highlighting both potential and risks.
To see Spark’s full report on BWMN stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.