NV5 Holdings (NVEE) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 584.10K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.61
• Revenue Growth: 9.90%
• EPS Growth: -32.50%
• Country: US
• Employees: 4,714
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.49
• Shares Outstanding: 65,227,710
• 10 Day Avg. Volume: 415,576
• 30 Day Avg. Volume: 584,102
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.30
• Price to Cash Flow (P/CF): 1459.00
• P/FCF Ratio: 479.50
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.75
• Price Target Upside: 79.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

NV5 Holdings' overall score is driven by solid financial fundamentals and promising guidance for future growth. However, technical indicators show a bearish trend, and the stock appears overvalued with no dividend yield. Despite strong revenue growth and strategic initiatives outlined in the earnings call, challenges such as declining net income and cash flow issues remain.

Positive Factors

Backlog and Growth

Backlog at the end of Q4 was $904M (+8% y/y), driven by cross-selling opportunities, with over 80% of 2025 revenue covered by backlog.

Free Cash Flow and Debt

NVEE is expected to generate free cash flow and reduce debt.

Revenue Guidance

NVEE introduced a 2025 revenue guidance range that was above consensus.

Negative Factors

Backlog and Book-to-Bill Ratio

The backlog at the end of 4Q24 was below forecast, affecting the book-to-bill ratio.

Earnings

2024 EPS declined due to increased interest and operating expenses.

Financial Performance

The 4Q24 gross profit margin was below forecast due to lower margins from data center and geospatial work.

NV5 Holdings Business Overview & Revenue Model

Company Description

NV5 Holdings (NVEE) is a provider of professional and technical engineering and consulting solutions. The company operates across various sectors including infrastructure, energy, construction, and environmental services. NV5 offers a comprehensive range of services such as engineering, surveying, construction quality assurance, program management, and environmental consulting, catering to public and private sector clients.

How the Company Makes Money

NV5 Holdings generates revenue through a diverse range of engineering and consulting services. The company's primary revenue streams include fees charged for professional services in engineering, consulting, and project management across its various sectors. NV5 often enters into contracts with government agencies and private sector clients for infrastructure development, environmental compliance, and energy projects. Additionally, strategic acquisitions of complementary service providers enhance its service offerings and expand market reach, contributing to its earnings growth.

NV5 Holdings Financial Statement Overview

Summary

NV5 Holdings shows solid financial health with a strong equity base and effective cost control, despite recent declines in profitability margins and cash flow generation. The company should focus on enhancing operational efficiency and profitability to strengthen its financial positioning further.

Income Statement

NV5 Holdings demonstrated positive revenue growth over the years, though the most recent year saw a decline. The gross profit margin is high given that gross profit equals total revenue, indicating effective control over cost of goods sold. However, the net profit margin has decreased from prior periods, suggesting increased expenses or inefficiencies. The EBIT and EBITDA margins have also declined, pointing to reduced operating efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with a decreasing debt-to-equity ratio, indicating improved leverage management. The return on equity has been declining, suggesting reduced efficiency in profit generation from equity. The equity ratio remains healthy, indicating a strong capital structure with substantial stockholder investment relative to total assets.

Cash Flow

Operating cash flow has been consistent, but there is a noticeable drop in free cash flow, reflecting higher capital expenditures or lower operational efficiency. The free cash flow to net income ratio has decreased, indicating less cash being converted from profits. Nevertheless, the cash position has remained relatively stable due to effective management of financing and investing activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
483.23M	861.74M	786.78M	706.71M	659.30M
	Gross Profit
483.23M	430.36M	385.97M	359.31M	334.54M
	EBIT
43.43M	61.18M	66.18M	68.34M	44.15M
	EBITDA
110.05M	119.20M	123.06M	123.51M	99.11M
	Net Income Common Stockholders
27.98M	44.61M	49.97M	47.15M	21.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.36M	44.82M	38.54M	47.98M	64.91M
	Total Assets
1.32B	1.17B	935.72M	961.94M	881.17M
	Total Debt
252.80M	228.71M	54.85M	131.80M	307.52M
	Net Debt
202.44M	183.88M	16.31M	83.82M	242.61M
	Total Liabilities
482.34M	394.80M	241.48M	337.22M	487.11M
	Stockholders Equity
833.01M	775.79M	694.24M	624.72M	394.07M
Cash Flow		Free Cash Flow
40.40M	45.04M	78.29M	87.54M	86.15M
	Operating Cash Flow
57.32M	62.21M	93.98M	101.44M	96.01M
	Investing Cash Flow
-80.16M	-205.79M	-21.51M	-80.26M	-9.07M
	Financing Cash Flow
28.57M	149.85M	-81.91M	-38.11M	-53.86M

NV5 Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVEE, the sentiment is Negative. The current price of 16.06 is below the 20-day moving average (MA) of 16.98, below the 50-day MA of 17.66, and below the 200-day MA of 20.94, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 48.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVEE.

NV5 Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLDN	72 Outperform	$556.55M	24.31	10.40%	―	10.92%	100.59%
LMB	72 Outperform	$1.08B	36.04	22.50%	―	0.47%	43.12%
AMRC	68 Neutral	$565.49M	10.11	5.92%	―	28.76%	-9.56%
GLDD	66 Neutral	$617.02M	10.84	13.73%	―	29.35%	309.98%
Sector *	63 Neutral	$4.27B	11.40	5.38%	214.63%	4.11%	-8.98%
NVEE	58 Neutral	$1.05B	32.81	3.83%	―	9.90%	-32.50%
TPC	54 Neutral	$1.15B	―	-13.50%	―	11.51%	5.50%

NV5 Holdings Corporate Events

NV5 Holdings Reports Strong 2024 Financial Performance

NV5 Global reported strong financial performance for 2024, with a 10% increase in gross revenues and a 13% rise in gross profit compared to 2023. Despite a decrease in net income, the company successfully completed key acquisitions to bolster its service areas and anticipates further growth in 2025, supported by a robust acquisition pipeline and revenue guidance between $1.026 billion and $1.045 billion.