Bowman Consulting Group (BWMN) AI Stock Analysis

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Bowman Consulting Group

(NASDAQ:BWMN)

Rating:72Outperform

Price Target:

$28.00

▲( 11.29% Upside)

Bowman Consulting Group is positioned well with strong revenue growth and effective cash management. Technical indicators suggest the stock is in an upward trend, but caution is advised due to potential overvaluation. The positive sentiment from the earnings call bolsters confidence, despite ongoing net loss challenges and margin pressures. The overall outlook is favorable, yet tempered by valuation concerns.

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. SPDR S&P 500 ETF (SPY)

Market Cap

$433.58M

Dividend YieldN/A

Average Volume (3M)84.04K

Price to Earnings (P/E)169.9

Beta (1Y)0.89

Revenue Growth21.78%

EPS GrowthN/A

CountryUS

Employees2,300

SectorIndustrials

Sector Strength92

IndustryEngineering & Construction

Share Statistics

EPS (TTM)0.07

Shares Outstanding17,233,068

10 Day Avg. Volume86,314

30 Day Avg. Volume84,039

Financial Highlights & Ratios

PEG Ratio1.09

Price to Book (P/B)1.65

Price to Sales (P/S)0.00

P/FCF Ratio20.78

Enterprise Value/Market Cap1.33

Enterprise Value/Revenue0.36

Enterprise Value/Gross Profit2.74

Enterprise Value/Ebitda7.28

Forecast

1Y Price Target

$32.75

Price Target Upside30.17% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Bowman Consulting Group Business Overview & Revenue Model

Company DescriptionBowman Consulting Group (BWMN) is a professional services firm that offers a range of engineering, surveying, environmental, and land planning services. The company serves various sectors including residential, commercial, energy, transportation, and water resources. With a focus on delivering high-quality solutions tailored to meet the specific needs of its clients, Bowman Consulting Group aims to support infrastructure and development projects across the United States.

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

Neutral

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
26.83M	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
150.44M	140.69M	81.03M	28.01M	18.90M
	Net Debt
143.74M	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

Technical Analysis Sentiment

Positive

Last Price25.16

Price Trends

50DMA

23.27

Positive

100DMA

23.29

Positive

200DMA

23.68

Positive

Market Momentum

MACD

0.87

Negative

RSI

57.27

Neutral

STOCH

34.93

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWMN, the sentiment is Positive. The current price of 25.16 is above the 20-day moving average (MA) of 24.32, above the 50-day MA of 23.27, and above the 200-day MA of 23.68, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 34.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEE	80 Outperform	$1.45B	45.25	3.79%	―	8.65%	-22.72%
WLDN	75 Outperform	$745.86M	30.47	10.78%	―	12.40%	81.98%
BWMN	72 Outperform	$433.58M	169.89	1.25%	―	21.78%	―
AMRC	72 Outperform	$718.04M	13.45	5.64%	―	30.13%	-7.60%
ORN	70 Outperform	$316.83M	130.67	2.25%	―	15.58%	―
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
MTRX	55 Neutral	$332.43M	―	-14.26%	―	-0.29%	-6.77%

* Industrials Sector Average

Performance Comparison

BWMN

Bowman Consulting Group

25.03

-7.02

-21.90%

AMRC

Ameresco

13.65

-21.04

-60.65%

MTRX

Matrix Service Company

12.13

1.18

10.78%

ORN

Orion Group Holdings

8.10

-1.20

-12.90%

WLDN

Willdan Group

51.45

19.47

60.88%

NVEE

NV5 Holdings

22.14

-1.56

-6.58%

Bowman Consulting Group Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 10.98%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong start to the year for Bowman Consulting Group, with record-breaking performance in key financial metrics and diversified growth across sectors. While there were some ongoing challenges with net losses and margin targets, the overall sentiment was positive due to robust revenue growth, improved cash flow, and strategic investments.

Q1-2025 Updates

Positive Updates

Strong Start to 2025

Best performing first quarter on record with significant growth in bookings, gross revenue, net service billing, and cash conversion.

Revenue and Backlog Growth

Gross revenue increased by 19% to $112.9 million, net service billing grew by 17% to $100.1 million, and backlog increased 27% year-over-year to almost $419 million.

Improved Financial Performance

Pre-tax net income improved from a $5 million loss to under $1 million loss, and adjusted EBITDA increased by 19.6% to $14.5 million.

Cash Flow and Share Repurchase

Cash flow from operations improved to $12 million with an 83% operational cash flow conversion rate, and $6.7 million of common stock repurchased.

Diversified Revenue Streams

Significant growth in transportation (30%) and emerging markets (118%), with every sector showing year-over-year growth.

Negative Updates

Net Loss Persistence

Despite improvements, the company still reported a net loss of $1.7 million.

Margin Challenges

Adjusted EBITDA margin on net revenue was slightly lower than the indicated midpoint of the company's outlook.

Company Guidance

During Bowman Consulting Group's first quarter of fiscal year 2025 conference call, strong guidance was provided with a focus on their financial metrics. The company reported a 19% increase in gross revenue to $112.9 million and a 17% rise in net service billing to $100.1 million, indicating robust growth. They achieved a gross margin improvement to 51.4% and adjusted EBITDA increased by 19.6% to $14.5 million. The backlog grew by 27% year-over-year to $419 million, with a book-to-build ratio well over 1, reflecting balanced growth across all markets. Cash flow from operations improved significantly to $12 million, with an operational cash flow conversion rate of 83% and a free cash flow conversion rate of 73%. The company reaffirmed its full-year guidance for net revenues between $428 million and $440 million and adjusted EBITDA between $70 million and $76 million, placing them in the top tier of peer performance.

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.

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.