IES Holdings (IESC) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: N/A
• Average Volume (3M): 189.81K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.87
• Revenue Growth: 21.53%
• EPS Growth: 66.65%
• Country: US
• Employees: 9,423
• Sector: Industrials
• Sector Strength: 82
• Industry: Engineering & Construction
• EPS (TTM): 3.50
• Shares Outstanding: 19,854,416
• 10 Day Avg. Volume: 190,809
• 30 Day Avg. Volume: 189,807
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

IES Holdings is well-positioned for continued growth, driven by strong financial performance and strategic positioning in high-demand sectors. While technical indicators show strength, caution is advised due to overbought signals. The valuation is fair, though the lack of a dividend yield may deter some investors. Overall, the company's robust financial health and positive corporate events support a favorable outlook.

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 across all verticals. The income statement demonstrates impressive revenue growth and profitability, with a net profit margin of 8.12% and EBIT margin of 10.63%. The balance sheet shows financial stability with a low debt-to-equity ratio of 0.07 and a robust ROE of 36.00%. Cash flow operations are efficient, although there is a slight decline in free cash flow. Overall, the company's financial health is robust, positioning it well for future growth.

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

IES Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 245.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 245.64 is above the 20-day moving average (MA) of 205.82, above the 50-day MA of 187.18, and above the 200-day MA of 206.98, indicating a bullish trend. The MACD of 16.99 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 90.94 is Negative, 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	78 Outperform	$5.10B	85.49	9.21%	―	22.91%	-1.39%
PRIM	78 Outperform	$3.51B	17.78	15.30%	0.42%	12.45%	42.45%
STRL	76 Outperform	$5.23B	20.09	36.67%	―	4.84%	77.84%
IESC	75 Outperform	$4.73B	20.68	37.73%	―	21.53%	66.65%
GVA	72 Outperform	$3.59B	36.48	12.75%	0.64%	11.42%	247.33%
DY	70 Outperform	$5.29B	23.23	20.35%	―	12.61%	7.43%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%

IES Holdings Corporate Events

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.

Spark’s Take on IESC Stock

According to Spark, TipRanks’ AI Analyst, IESC is a Outperform.

IES Holdings scores a 78, reflecting strong financial performance bolstered by revenue and profit growth, a solid balance sheet, and robust cash flow. Technical indicators show moderate strength, while the stock’s valuation is reasonable. Positive corporate events further enhance the company’s prospects.

To see Spark’s full report on IESC stock, click here.