IES Holdings (IESC) AI Stock Analysis

• Market Cap: $5.35B
• Dividend Yield: N/A
• Average Volume (3M): 160.33K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.90
• Revenue Growth: 21.53%
• EPS Growth: 66.65%
• Country: US
• Employees: 9,423
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 3.50
• Shares Outstanding: 19,854,416
• 10 Day Avg. Volume: 184,160
• 30 Day Avg. Volume: 160,328
• PEG Ratio: -0.30
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -43.91
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: 0.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $319.00 ▲(17.62%Upside)

IES Holdings' strong financial performance, combined with positive technical indicators and strategic corporate events, support a positive outlook. The stock is buoyed by growth in key segments, although valuation concerns and the absence of dividend yield are minor drawbacks. The leadership changes and strong financial results further bolster confidence in the company's strategic direction.

IES Holdings Business Overview & Revenue Model

Company Description

IES 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 Money

IES Holdings generates revenue through its diversified segments, each contributing to the company's overall earnings. The Communications segment offers network infrastructure services, including the design, installation, and maintenance of data networks, which are critical for businesses and institutions. The Residential segment focuses on electrical contracting services for new residential construction, providing a steady revenue stream from homebuilders. The Infrastructure Solutions segment caters to industrial and utility customers, offering specialty electrical and instrumentation services that are essential for large-scale infrastructure projects. The Commercial & Industrial segment provides electrical and mechanical services to commercial buildings and industrial facilities. Revenue is derived from project-based contracts, long-term service agreements, and partnerships with general contractors and developers. Key factors contributing to earnings include the company's expertise in managing complex projects, its strategic partnerships, and its ability to deliver integrated solutions across multiple sectors.

IES Holdings Financial Statement Overview

Summary

IES Holdings exhibits strong financial performance with notable revenue growth and profitability. The income statement highlights significant growth and efficient operating performance. The balance sheet shows low leverage and high ROE, indicating stability and low risk. Cash flow is healthy despite a slight decrease in free cash flow, suggesting robust cash generation and management.

Income Statement

IES Holdings demonstrates strong revenue growth and profitability. The TTM gross profit margin is approximately 24.55%, with a net profit margin of 8.12%. Revenue has shown consistent growth over the years, with a significant increase of 9.18% from the previous year. The EBIT margin is 10.63%, indicating efficient operating performance. These figures reflect robust financial health and effective cost management.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.07, showcasing low leverage. Return on Equity (ROE) stands at 36.00%, indicating strong profitability relative to equity. The equity ratio is 51.72%, suggesting a stable financial structure with more than half of the assets financed by equity. Overall, the balance sheet reflects financial stability with low risk.

Cash Flow

Cash flow performance is commendable with operating cash flow to net income ratio of 0.94 and a free cash flow to net income ratio of 0.69. Free cash flow has decreased slightly compared to the previous year, but overall cash flow management remains strong. These metrics suggest healthy cash generation and efficient capital expenditure management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.13B	2.88B	2.38B	2.17B	1.54B	1.19B
	Gross Profit
768.07M	696.59M	444.54M	318.90M	288.00M	228.00M
	EBIT
332.49M	300.88M	159.78M	56.00M	85.60M	50.10M
	EBITDA
368.76M	343.11M	178.92M	81.68M	107.78M	69.56M
	Net Income Common Stockholders
252.21M	219.12M	108.29M	34.76M	66.66M	41.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
88.28M	135.84M	75.77M	24.80M	23.10M	53.60M
	Total Assets
1.36B	1.24B	981.60M	934.70M	766.60M	560.50M
	Total Debt
51.65M	62.43M	61.59M	137.02M	68.30M	20.70M
	Net Debt
29.22M	-38.41M	-14.18M	112.22M	45.20M	-32.90M
	Total Liabilities
618.03M	591.92M	481.66M	544.20M	396.10M	275.40M
	Stockholders Equity
705.78M	611.11M	449.99M	361.30M	345.90M	283.30M
Cash Flow		Free Cash Flow
175.89M	189.25M	136.24M	-13.00M	30.50M	72.00M
	Operating Cash Flow
237.81M	234.40M	153.90M	16.30M	37.90M	76.70M
	Investing Cash Flow
-194.59M	-108.85M	2.77M	-29.50M	-99.60M	-33.60M
	Financing Cash Flow
-126.77M	-100.50M	-105.75M	15.00M	31.20M	-8.50M

IES Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 271.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IESC, the sentiment is Positive. The current price of 271.22 is above the 20-day moving average (MA) of 262.23, above the 50-day MA of 227.25, and above the 200-day MA of 218.77, indicating a bullish trend. The MACD of 12.00 indicates Positive momentum. The RSI at 62.52 is Neutral, neither overbought nor oversold. The STOCH value of 63.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IESC.

IES Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROAD	81 Outperform	$5.74B	89.94	9.21%	―	31.49%	-0.13%
IESC	78 Outperform	$5.35B	23.53	37.73%	―	21.53%	66.65%
STRL	77 Outperform	$6.03B	23.90	36.67%	―	4.84%	77.84%
GVA	75 Outperform	$3.93B	39.52	12.75%	0.58%	11.42%	247.33%
PRIM	74 Outperform	$3.88B	19.07	15.30%	0.44%	12.45%	42.45%
DY	68 Neutral	$6.84B	29.87	19.76%	―	12.77%	1.55%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%

IES Holdings Corporate Events

IES Holdings Appoints New CEO Matthew J. Simmes

On May 19, 2025, IES Holdings announced the appointment of Matthew J. Simmes as the new President and Chief Executive Officer, effective July 1, 2025, succeeding Jeffrey L. Gendell. Mr. Simmes, who has been with the company for over 31 years, will continue as President and join the Board of Directors, while Mr. Gendell will transition to the role of Executive Chairman. This leadership change is part of IES’s executive succession plan and reflects the company’s strategic focus on long-term growth and operational success.

IES Holdings Appoints Kelly C. Janzen to Board

On May 12, 2025, IES Holdings appointed Kelly C. Janzen to its Board of Directors and the Audit Committee, recognizing her extensive experience in finance and accounting. Ms. Janzen, who has held significant leadership roles in various companies, is expected to bring valuable insights to the board, enhancing IES Holdings’ strategic direction and governance.

IES Holdings Reports Strong Q2 2025 Financial Results

IES Holdings reported strong financial results for the second quarter of fiscal 2025, with an 18% increase in revenue and a 19% increase in operating income compared to the previous year. The company experienced robust demand in its Communications, Infrastructure Solutions, and Commercial & Industrial segments, particularly in the data center market. However, the Residential segment faced challenges due to high mortgage rates and inflation, impacting single-family housing demand. The company remains optimistic about future growth, supported by strategic acquisitions and investments in capacity expansion.