NV5 Holdings (NVEE) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 605.63K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.80
• Revenue Growth: 9.90%
• EPS Growth: -32.50%
• Country: US
• Employees: 4,714
• Sector: Industrials
• Sector Strength: 63
• Industry: Engineering & Construction
• EPS (TTM): 0.49
• Shares Outstanding: 65,227,710
• 10 Day Avg. Volume: 662,954
• 30 Day Avg. Volume: 605,627
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.75
• Price Target Upside: 59.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

NV5 Holdings’ stock is moderately positioned with a score of 63.5. Strengths include solid financial health and strong revenue growth with expansion plans. However, challenges like declining net income, cash flow issues, and current bearish technical indicators weigh down the score. The company's high P/E ratio suggests overvaluation, but its strategic plans and large backlog provide potential upside.

Positive Factors

Market Position

NV5 is well positioned in attractive growth markets with tailwinds from data center construction, electrical grid hardening, and infrastructure spending.

Revenue Guidance

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

Negative Factors

Earnings Guidance

Management lowered 2024 guidance with revenue now expected to be $939-$943 million compared to prior guidance of $944-$950 million.

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 Global offers professional and technical engineering and consulting solutions to public and private sector clients in the infrastructure, utility services, construction, real estate, and environmental markets in the United States and internationally. It operates through three segments: Infrastructure; Building, Technology & Sciences; and Geospatial Solutions. The company provides site selection and planning, design, water resources, transportation, structural engineering, land development, surveying, power delivery, building code compliance, and other services; and construction materials testing and engineering, geotechnical engineering and consulting, and forensic consulting services. It also provides governmental outsourcing and consulting, and technical outsourcing services; and geospatial data analytic and mapping services. In addition, it offers mechanical, electrical, and plumbing design; commissioning; energy performance, management, and optimization; climate change and reducing CO2 emissions; building program management; acoustical design consulting; and audiovisual–security and surveillance–information technology–data center services. Further, the company provides various services, such as investigating and analyzing environmental conditions, and recommending corrective measures and procedures; occupational health and safety services; radiation exposure and protection, and nuclear safety and industrial hygiene analyses services; hydrogeological modeling and environmental programs; water resource planning, monitoring, and environmental management of wastewater facilities; solid waste landfill investigations; permitting and compliance; storm water pollution; environmental impact statement support; agricultural waste management and permitting; and wetland evaluations. The company was formerly known as NV5 Holdings, Inc. and changed its name to NV5 Global, Inc. in December 2015. NV5 Global, Inc. was founded in 1949 and is headquartered in Hollywood, Florida.

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: 18.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 18 is below the 20-day moving average (MA) of 18.71, below the 50-day MA of 18.28, and below the 200-day MA of 21.42, indicating a bearish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 61.27 is Neutral, neither overbought nor oversold. The STOCH value of 52.92 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
KBR	73 Outperform	$6.17B	17.03	26.45%	1.29%	11.30%	―
FLR	72 Outperform	$5.21B	2.54	72.85%	―	5.43%	2094.12%
TTEK	71 Outperform	$7.80B	30.38	16.05%	0.80%	11.02%	11.33%
NVEE	64 Neutral	$1.17B	36.77	3.83%	―	9.90%	-32.50%
J	62 Neutral	$13.66B	22.96	10.92%	1.07%	-13.76%	-13.39%
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%

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.

Leadership Changes at NV5 Holdings Announced

Alexander Hockman has resigned from his position as Co-CEO of NV5 Global, Inc. as of January 3, 2025, and has transitioned to the role of CEO of Infrastructure. Ben Heraud has assumed the role of sole CEO, while Dickerson Wright continues as Executive Chairman overseeing strategic growth and mergers and acquisitions.