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IES Holdings, Inc. (IESC)
:IESC

IES Holdings (IESC) AI Stock Analysis

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IES Holdings

(NASDAQ:IESC)

70Neutral
IES Holdings exhibits strong financial performance and positive corporate developments. However, technical indicators suggest bearish market sentiment, which could temper immediate stock appreciation. The valuation is reasonable, supporting a moderate outlook.

IES Holdings (IESC) vs. S&P 500 (SPY)

IES Holdings Business Overview & Revenue Model

Company DescriptionIES Holdings, Inc. designs and installs integrated electrical and technology systems, and provides infrastructure products and services in the United States. Its Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. Its Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. Its Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. Its Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. The company was incorporated in 1997 and is headquartered in Houston, Texas.
How the Company Makes MoneyIES Holdings generates revenue through multiple streams, primarily by providing electrical contracting and infrastructure services. The company earns money by executing contracts for the installation and maintenance of electrical systems in various sectors, including residential, commercial, and industrial markets. Additionally, IES Holdings capitalizes on its expertise in data solutions and communications infrastructure, offering specialized services that cater to the increasing demand for connectivity and technological advancements. Strategic partnerships and long-term contracts with key clients contribute significantly to the company's earnings, ensuring a steady flow of income and enhancing its market position.

IES Holdings Financial Statement Overview

Summary
IES Holdings shows strong financial performance, with impressive growth in revenue and profitability. The company has a stable balance sheet with low leverage, and a consistent cash flow generation. While fluctuations in free cash flow growth exist, overall financial health remains robust.
Income Statement
85
Very Positive
IES Holdings demonstrates strong revenue and profit growth, with a significant revenue increase from the previous years. The gross profit margin is robust, indicating effective cost management. The net profit margin has improved substantially, reflecting enhanced profitability. EBIT and EBITDA margins are also solid, confirming operational efficiency.
Balance Sheet
80
Positive
The company's balance sheet shows a healthy equity ratio, suggesting financial stability. The debt-to-equity ratio is low, indicating prudent leverage levels. Return on equity is strong, showcasing effective utilization of shareholders' funds. Overall, the balance sheet reflects a stable financial position with manageable liabilities.
Cash Flow
78
Positive
IES Holdings demonstrates positive free cash flow growth, with a strong operating cash flow to net income ratio, indicating efficient cash generation from operations. The company's ability to convert net income into cash flow is commendable. However, fluctuations in free cash flow growth should be monitored.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
3.00B2.88B2.38B2.17B1.54B1.19B
Gross Profit
722.99M696.59M444.54M318.90M288.00M228.00M
EBIT
316.13M300.88M159.78M56.00M85.60M50.10M
EBITDA
360.15M337.01M178.92M81.68M107.78M69.56M
Net Income Common Stockholders
235.84M219.12M108.29M34.76M66.66M41.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
54.18M135.84M75.77M24.80M23.10M53.60M
Total Assets
226.60M1.24B981.60M934.70M766.60M560.50M
Total Debt
27.98M40.45M61.59M137.02M68.30M20.70M
Net Debt
-26.20M-60.39M-14.18M112.22M45.20M-32.90M
Total Liabilities
107.24M591.92M481.66M544.20M396.10M275.40M
Stockholders Equity
119.37M611.11M449.99M361.30M345.90M283.30M
Cash FlowFree Cash Flow
194.90M189.25M136.24M-13.00M30.50M72.00M
Operating Cash Flow
246.71M234.40M153.90M16.30M37.90M76.70M
Investing Cash Flow
-161.28M-108.85M2.77M-29.50M-99.60M-33.60M
Financing Cash Flow
-113.81M-100.50M-105.75M15.00M31.20M-8.50M

IES Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price161.63
Price Trends
50DMA
197.04
Negative
100DMA
224.96
Negative
200DMA
200.02
Negative
Market Momentum
MACD
-6.92
Negative
RSI
40.05
Neutral
STOCH
21.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IESC, the sentiment is Negative. The current price of 161.63 is below the 20-day moving average (MA) of 176.61, below the 50-day MA of 197.04, and below the 200-day MA of 200.02, indicating a bearish trend. The MACD of -6.92 indicates Negative momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 21.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IESC.

IES Holdings Risk Analysis

IES Holdings disclosed 39 risk factors in its most recent earnings report. IES Holdings 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

IES Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
EMEME
77
Outperform
$17.07B17.4537.25%0.28%15.76%61.64%
PWPWR
72
Outperform
$37.35B41.8013.32%0.15%13.36%20.00%
FIFIX
71
Outperform
$11.73B22.6035.03%0.43%34.97%62.08%
70
Neutral
$3.23B15.2437.89%23.09%102.01%
62
Neutral
$8.08B13.633.82%3.13%3.58%-14.35%
DYDY
61
Neutral
$4.29B18.6920.35%12.61%7.43%
58
Neutral
$1.84B64.634.84%-7.73%-65.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IESC
IES Holdings
161.63
28.00
20.95%
FIX
Comfort Systems
311.37
-10.79
-3.35%
DY
Dycom
147.94
5.62
3.95%
EME
EMCOR Group
354.54
-9.60
-2.64%
MYRG
MYR Group
110.57
-67.64
-37.96%
PWR
Quanta Services
252.04
-10.71
-4.08%

IES Holdings Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
IES Holdings Reports Strong Q1 2025 Performance
Positive
Feb 4, 2025

IES Holdings reported a strong start to fiscal 2025 with an 18% increase in revenue and a 29% rise in operating income for the first quarter compared to the previous year. The company benefited from high demand in its communications and infrastructure solutions segments, particularly within the data center market. Despite challenges in the residential segment due to hurricanes in Florida, IES maintained robust operating margins and continued to invest in growth opportunities, including acquiring Arrow Engine Company. The firm also expanded its financial flexibility by increasing its revolving credit facility and investing in new business ventures.

Private Placements and FinancingBusiness Operations and Strategy
IES Holdings Expands Credit Facility for Growth
Positive
Jan 22, 2025

On January 21, 2025, IES Holdings entered into a new credit agreement with Wells Fargo and other financial institutions, increasing its revolving credit facility to $300 million and extending its maturity to 2030. This transition from an asset-based to a cash flow-based facility enhances borrowing capacity and supports IES’s strategic initiatives such as organic growth and acquisitions, reflecting confidence from its banking partners.

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.