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NV5 Holdings (NVEE)
NASDAQ:NVEE
US Market

NV5 Holdings (NVEE) AI Stock Analysis

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NV5 Holdings

(NASDAQ:NVEE)

Rating:80Outperform
Price Target:
$26.00
▲(15.40%Upside)
NV5 Holdings receives a robust overall stock score of 80, primarily driven by strong financial performance and strategic corporate events. The company demonstrates solid operational efficiency and potential for growth. While the technical indicators suggest bullish momentum, the high P/E ratio points to valuation concerns.
Positive Factors
Growth Outlook
NV5 is on-track to meet its goal of a $1.6 billion revenue run-rate exiting 2028, implying 5%-7% organic growth and $400 million in acquired revenue.
Merger Synergies
The merger combines complementary testing and engineering platforms that should have commercial and cost synergies.
Revenue Performance
Revenue of $234 million was above the consensus estimate of $229 million, indicating strong performance.
Negative Factors
Ownership Change
NVEE holders will receive shares such that they will own roughly 40% of the combined company, indicating a significant change in ownership structure.
Profit Margin
The 4Q24 gross profit margin was below forecast due to lower margins from data center and geospatial work.
Share Valuation
The offer price represents a discount to the company’s 2023 VWAP by 14% and 2024 VWAP by 2%.

NV5 Holdings (NVEE) vs. SPDR S&P 500 ETF (SPY)

NV5 Holdings Business Overview & Revenue Model

Company DescriptionNV5 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 MoneyNV5 Holdings generates revenue primarily through the fees it charges for its professional and technical services. The company operates on a project-based model, where it earns income by providing engineering, consulting, and management services to clients across various sectors. Key revenue streams include infrastructure development, energy efficiency projects, environmental consulting, and construction management. NV5 often engages in long-term contracts with government agencies and private sector clients, which provide a steady flow of income. Additionally, strategic acquisitions and partnerships enhance NV5's service offerings and expand its market reach, contributing to its overall earnings.

NV5 Holdings Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 22.25%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
NV5's earnings call for Q1 2025 reflects strong financial performance with record growth in revenues and profitability. The company experienced positive developments in both the Infrastructure and Buildings segments. Although the Geospatial segment faced some delays due to federal contract awards, the overall impact was minimal. The company remains optimistic about its growth prospects for the remainder of the year, supported by successful acquisitions and improved cash flow. Challenges were noted in the integration process within the Geospatial segment, but strategic initiatives are expected to enhance future performance.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
NV5 reported 5% organic growth in gross revenues, with $234 million in gross revenues, $30 million in adjusted EBITDA, and $123 million in gross profits for Q1 2025.
Infrastructure and Buildings Segments Growth
The Infrastructure and Buildings and Technology segments increased gross revenues by 12% and 17% respectively.
Record First Quarter Financial Results
Gross revenues grew 10% to $234 million compared to $212.6 million in Q1 2024, with a gross profit increase of 10% to $123.2 million.
Significant Cash Flow Improvement
Strong cash flows from operations of $38.4 million in Q1 2025, representing a 96% increase over Q1 2024.
Successful Acquisitions
Completed three acquisitions including Herman Cx and CRS Survey, which have already contributed to business growth through cross-selling.
Geospatial Software Growth
Geospatial software performance grew 11% in Q1 2025 over Q1 2024 at improved margins.
Negative Updates
Geospatial Segment Slowed
Growth in the Geospatial segment was slowed due to delays in federal contract awards.
Minimal Impact from Federal Spending Delays
Federal spending delays caused some contracting delays but only one small contract cancellation occurred.
Impact of Integration on Geospatial Segment
Integration of acquisitions and restructuring in the Geospatial segment affected the efficiency and profit in the early part of the year.
Company Guidance
During the first quarter of 2025, NV5 reported a robust financial performance, exceeding budget expectations with a 5% organic growth in gross revenues. The company recorded $234 million in gross revenues and $30 million in adjusted EBITDA, alongside $123 million in gross profits. Notably, the Infrastructure and Buildings and Technology segments demonstrated substantial growth, with a 12% and 17% increase in gross revenues, respectively. Despite delays in federal contract awards affecting the Geospatial segment, NV5 anticipates enhanced growth in this area through the year. The company's strategic initiatives aim for a 5% to 9% organic growth, a 150 basis point margin expansion, and a 60% free cash flow conversion of adjusted EBITDA in 2025. NV5 also completed three strategic acquisitions in Q1 to bolster its platform and foster organic growth, while maintaining a strong balance sheet with a net leverage reduced to 1.3 times. For the full year, the company reaffirmed its guidance of $1.26 billion to $1.45 billion in gross revenues, with GAAP earnings per share projected between $0.52 and $0.62, and adjusted EPS between $1.27 and $1.37.

NV5 Holdings Financial Statement Overview

Summary
NV5 Holdings demonstrates strong financial performance with consistent revenue growth and operational efficiency. The company has a solid balance sheet and effective cash flow management. However, there is room for improvement in net profit margins and return on equity.
Income Statement
78
Positive
NV5 Holdings demonstrates strong financial performance with a consistent upward trajectory in revenue, showing a TTM (Trailing-Twelve-Months) revenue of $879 million. Despite a slight decrease in revenue from the previous annual period, the company maintains stable profitability, evidenced by a gross profit margin of 56.1% and a net profit margin of 3.3% for TTM. The EBIT and EBITDA margins are also respectable at 4.9% and 12.0%, respectively, reflecting operational efficiency. However, the net profit margin has decreased over time, indicating potential pressures on bottom-line profitability.
Balance Sheet
75
Positive
The balance sheet of NV5 Holdings is robust, with a solid equity base of $843 million, leading to an equity ratio of 64.2% for TTM, suggesting financial stability. The company maintains a manageable debt-to-equity ratio of 0.28, showcasing prudent financial leverage. However, the return on equity (ROE) for TTM is relatively moderate at 3.4%, highlighting room for improvement in generating returns on shareholder investment. The company's asset base continues to grow, supporting its capacity for future growth and expansion.
Cash Flow
82
Very Positive
NV5 Holdings exhibits strong cash flow management, with a healthy operating cash flow to net income ratio of 2.64 for TTM, indicating efficient conversion of profits into cash. The free cash flow has improved to $51.9 million for TTM, showing a significant growth rate compared to previous periods. This positive free cash flow trend enhances the company's ability to fund operations and investments without relying heavily on external financing. However, fluctuations in investing cash flows suggest potential variability in capital allocation strategies.
Breakdown
TTMDec 2024Dec 2023Dec 2022Mar 2022Mar 2021
Income StatementTotal Revenue
990.23M941.26M861.74M786.78M706.71M659.30M
Gross Profit
493.61M483.23M430.36M385.97M359.31M334.54M
EBIT
43.10M43.43M61.18M66.18M68.34M44.15M
EBITDA
114.50M110.05M119.20M123.06M123.51M99.11M
Net Income Common Stockholders
28.00M27.98M44.61M49.97M47.15M21.02M
Balance SheetCash, Cash Equivalents and Short-Term Investments
44.82M50.36M44.82M38.54M47.98M64.91M
Total Assets
1.24B1.32B1.17B935.72M961.94M881.17M
Total Debt
254.46M266.23M228.71M54.85M131.80M307.52M
Net Debt
209.64M215.87M183.88M16.31M83.82M242.61M
Total Liabilities
465.41M482.34M394.80M241.48M337.22M487.11M
Stockholders Equity
775.79M833.01M775.79M694.24M624.72M394.07M
Cash FlowFree Cash Flow
51.85M40.40M45.04M78.29M87.54M86.15M
Operating Cash Flow
76.14M57.32M62.21M93.98M101.44M96.01M
Investing Cash Flow
-46.38M-80.16M-205.79M-21.51M-80.26M-9.07M
Financing Cash Flow
-21.42M28.57M149.85M-81.91M-38.11M-53.86M

NV5 Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.53
Price Trends
50DMA
19.21
Positive
100DMA
18.72
Positive
200DMA
20.36
Positive
Market Momentum
MACD
0.91
Positive
RSI
70.19
Negative
STOCH
50.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVEE, the sentiment is Positive. The current price of 22.53 is above the 20-day moving average (MA) of 21.78, above the 50-day MA of 19.21, and above the 200-day MA of 20.36, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 70.19 is Negative, neither overbought nor oversold. The STOCH value of 50.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVEE.

NV5 Holdings Risk Analysis

NV5 Holdings disclosed 50 risk factors in its most recent earnings report. NV5 Holdings reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

NV5 Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.46B46.013.79%8.65%-22.72%
79
Outperform
$826.17M33.8910.78%12.40%81.98%
LMLMB
75
Outperform
$1.57B49.3823.37%3.62%28.02%
72
Outperform
$796.10M11.2415.67%28.03%80.90%
69
Neutral
$815.88M15.745.64%30.13%-7.60%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
TPTPC
62
Neutral
$2.14B-12.28%8.95%-41.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVEE
NV5 Holdings
22.83
0.23
1.02%
AMRC
Ameresco
15.97
-18.69
-53.92%
GLDD
Great Lakes Dredge & Dock
11.48
2.58
28.99%
TPC
Tutor Perini
40.56
21.06
108.00%
WLDN
Willdan Group
56.30
26.01
85.87%
LMB
Limbach Holdings
137.46
80.47
141.20%

NV5 Holdings Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
NV5 Holdings Amends Executive Employment Agreements
Positive
May 20, 2025

On May 14, 2025, NV5 Global, Inc. amended the employment agreements of Richard Tong, MaryJo O’Brien, and Edward Codispoti to incorporate ‘good leaver’ provisions in case of a termination event, subject to specific conditions. This amendment reflects a strategic move to enhance employee retention and satisfaction, potentially impacting the company’s operational stability and stakeholder confidence.

The most recent analyst rating on (NVEE) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on NV5 Holdings stock, see the NVEE Stock Forecast page.

M&A Transactions
NV5 Holdings Announces Merger with Acuren Corporation
Positive
May 15, 2025

On May 14, 2025, NV5 Global, Inc. entered into a merger agreement with Acuren Corporation, creating a combined entity with $2 billion in revenue. The merger is expected to be immediately accretive to Acuren stockholders, with $20 million in cost synergies and long-term revenue synergy opportunities. NV5 stockholders will receive $23.00 per share, consisting of cash and Acuren stock, representing a 32% premium to NV5’s 30-day VWAP. The merger will result in Acuren owning approximately 60% and NV5 owning about 40% of the combined company. The transaction is subject to stockholder and regulatory approvals and is expected to close in the second half of 2025.

The most recent analyst rating on (NVEE) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on NV5 Holdings stock, see the NVEE Stock Forecast page.

Financial Disclosures
NV5 Holdings Reports Strong Q1 2025 Financial Results
Positive
May 1, 2025

NV5 Global, Inc. announced strong financial results for the first quarter of 2025, with a 10% increase in gross revenues to $234 million and a 456% rise in net income to $0.4 million compared to the same period in 2024. The company also reported a significant 96% growth in cash flows from operations, totaling $38 million, and reaffirmed its positive full-year 2025 guidance, indicating confidence in continued revenue and profitability growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.