NV5 Holdings (NVEE) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: N/A
• Average Volume (3M): 817.74K
• Price to Earnings (P/E): 45.4
• Beta (1Y): 0.77
• Revenue Growth: 8.65%
• EPS Growth: -22.72%
• Country: US
• Employees: 4,714
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 0.17
• Shares Outstanding: 65,655,716
• 10 Day Avg. Volume: 529,083
• 30 Day Avg. Volume: 817,740
• PEG Ratio: N/A
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.13
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 3.60
• 1Y Price Target: $23.33
• Price Target Upside: 5.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: $26.00 ▲(17.01%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 Business Overview & Revenue Model

Company Description

NV5 Holdings (NVEE) is a provider of professional and technical engineering and consulting solutions. The company operates across multiple sectors including infrastructure, energy, construction, and environmental services. NV5 offers a wide range of services such as civil engineering, environmental consulting, program management, and construction quality assurance. With a focus on delivering sustainable and comprehensive solutions, NV5 serves a diverse client base including government agencies, private sector companies, and other organizations.

How the Company Makes Money

NV5 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
990.23M	941.26M	861.74M	786.78M	706.71M	659.30M
	Gross Profit
493.61M	483.23M	430.36M	385.97M	359.31M	334.54M
	EBIT
43.10M	43.43M	61.18M	66.18M	68.34M	44.15M
	EBITDA
114.50M	110.05M	119.20M	123.06M	123.51M	99.11M
	Net Income Common Stockholders
28.00M	27.98M	44.61M	49.97M	47.15M	21.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.54M	50.36M	44.82M	38.54M	47.98M	64.91M
	Total Assets
935.72M	1.32B	1.17B	935.72M	961.94M	881.17M
	Total Debt
54.85M	266.23M	228.71M	54.85M	131.80M	307.52M
	Net Debt
16.31M	215.87M	183.88M	16.31M	83.82M	242.61M
	Total Liabilities
241.48M	482.34M	394.80M	241.48M	337.22M	487.11M
	Stockholders Equity
694.24M	833.01M	775.79M	694.24M	624.72M	394.07M
Cash Flow		Free Cash Flow
51.85M	40.40M	45.04M	78.29M	87.54M	86.15M
	Operating Cash Flow
76.14M	57.32M	62.21M	93.98M	101.44M	96.01M
	Investing Cash Flow
-46.38M	-80.16M	-205.79M	-21.51M	-80.26M	-9.07M
	Financing Cash Flow
-21.42M	28.57M	149.85M	-81.91M	-38.11M	-53.86M

NV5 Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.22
• 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 NVEE, the sentiment is Positive. The current price of 22.22 is above the 20-day moving average (MA) of 21.62, above the 50-day MA of 19.14, and above the 200-day MA of 20.36, indicating a bullish trend. The MACD of 0.93 indicates Positive momentum. The RSI at 67.64 is Neutral, neither overbought nor oversold. The STOCH value of 38.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVEE.

NV5 Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEE	80 Outperform	$1.46B	45.37	3.79%	―	8.65%	-22.72%
WLDN	79 Outperform	$826.17M	33.76	10.78%	―	12.40%	81.98%
LMB	75 Outperform	$1.57B	48.58	23.37%	―	3.62%	28.02%
GLDD	72 Outperform	$796.10M	11.47	15.67%	―	28.03%	80.90%
AMRC	69 Neutral	$815.88M	15.28	5.64%	―	30.13%	-7.60%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
TPC	62 Neutral	$2.14B	―	-12.28%	―	8.95%	-41.32%

NV5 Holdings Corporate Events

NV5 Holdings Amends Executive Employment Agreements

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.

NV5 Holdings Announces Merger with Acuren Corporation

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.

NV5 Holdings Reports Strong Q1 2025 Financial Results

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.