Orion Group Holdings (ORN) AI Stock Analysis

• Market Cap: $342.14M
• Dividend Yield: N/A
• Average Volume (3M): 433.88K
• Price to Earnings (P/E): 142.1
• Beta (1Y): 1.75
• Revenue Growth: 15.58%
• EPS Growth: N/A
• Country: US
• Employees: 1,767
• Sector: Industrials
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 39,553,974
• 10 Day Avg. Volume: 588,384
• 30 Day Avg. Volume: 433,876
• PEG Ratio: 0.65
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.43
• 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: $9.50
• Price Target Upside: 9.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Orion Group Holdings exhibits a positive financial trajectory supported by improvements in profitability and cash management. While short-term technical indicators suggest bullish momentum, the stock's high valuation raises caution. The recent earnings call was a strong positive factor, highlighting significant growth and a robust backlog, although challenges remain in certain segments. Overall, the stock warrants a cautiously optimistic view.

Orion Group Holdings Business Overview & Revenue Model

Company Description

Orion Group Holdings, Inc. operates as a specialty construction company in the building, industrial, and infrastructure sectors in the continental United States, Alaska, Canada, and the Caribbean Basin. It operates in two segments, Marine and Concrete. The company provides various marine construction services, including construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility projects comprise public port facilities, cruise ship port facilities, private terminals, special-use navy terminals, recreational use marinas and docks, and other marine-based facilities. The company also offers on-going maintenance and repair, inspection, emergency repair, and demolition and salvage services to marine transportation facilities. Its marine pipeline service projects include the installation and removal of underwater buried pipeline transmission lines; the installation of pipeline intakes and outfalls for industrial facilities; the construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; the creation of hot taps and tie-ins; and inspection, maintenance, and repair services. The company's bridge and causeway projects include the construction, repair, and maintenance of overwater bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structures used for erosion control, wetlands creation, and environmental remediation. The company also provides specialty services, such as design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair services. In addition, it offers light commercial, structural, and other concrete construction services. Orion Group Holdings, Inc. was founded in 1994 and is headquartered in Houston, Texas.

How the Company Makes Money

Orion Group Holdings makes money primarily through contracts for specialized construction services in the marine and industrial sectors. Its revenue streams are derived from project-based work, which involves bidding for and executing contracts related to dredging, marine construction, and structural fabrication. The company leverages its expertise and resources to deliver projects on time and within budget, which helps in securing recurring contracts and establishing long-term relationships with clients. Significant factors contributing to its earnings include its ability to win competitive bids, maintain operational efficiency, and adapt to regulatory and environmental standards that govern the construction industry.

Orion Group Holdings Financial Statement Overview

Summary

Orion Group Holdings has demonstrated a positive trajectory in financial performance with improvements in profitability and cash management. The income statement shows revenue growth and improved margins, while the balance sheet highlights manageable leverage and a strong equity position. Cash flow metrics are robust, reflecting effective cash management practices.

Income Statement

Orion Group Holdings has shown a commendable improvement in its income statement metrics. The TTM gross profit margin stands at 11.96%, indicating efficient cost management. Notably, there is a net profit margin of 0.36% for the TTM, reflecting a turnaround from previous losses. Revenue has grown by 3.51% from the previous year, showcasing positive growth momentum. The EBIT margin improved to 1.87% in the TTM, although still modest, it marks a recovery from negative EBIT in prior years.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.32 in the TTM, indicating moderate leverage. The return on equity is a modest 1.99%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 36.22%, highlighting a strong equity position relative to total assets, which provides a buffer against potential financial risks.

Cash Flow

Orion Group Holdings demonstrates strong cash flow metrics with a significant improvement in free cash flow, up from negative levels in prior periods to $10.79 million in the TTM. The operating cash flow to net income ratio is favorable at 10.69, indicating robust cash generation relative to earnings. This reflects effective cash management practices and enhances financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
824.38M	796.39M	711.78M	748.32M	601.36M	709.94M
	Gross Profit
98.64M	91.16M	61.66M	50.74M	40.97M	84.70M
	EBIT
15.39M	11.52M	-6.63M	-12.70M	-20.40M	18.07M
	EBITDA
40.50M	44.81M	24.75M	21.14M	21.55M	60.21M
	Net Income Common Stockholders
3.00M	-1.64M	-17.88M	-12.61M	-14.56M	20.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.96M	28.32M	30.94M	3.78M	12.29M	1.59M
	Total Assets
416.31M	417.32M	416.89M	367.15M	351.75M	414.19M
	Total Debt
91.41M	95.34M	85.49M	66.56M	69.21M	65.67M
	Net Debt
78.45M	67.02M	54.55M	62.78M	56.91M	64.08M
	Total Liabilities
265.48M	266.64M	295.42M	229.35M	203.65M	254.69M
	Stockholders Equity
150.83M	150.68M	121.47M	137.80M	148.10M	159.49M
Cash Flow		Free Cash Flow
10.79M	-1.42M	8.27M	-5.02M	-16.91M	31.34M
	Operating Cash Flow
32.06M	12.68M	17.18M	9.56M	69.00K	46.03M
	Investing Cash Flow
-18.60M	-11.48M	2.17M	-9.70M	10.63M	-3.13M
	Financing Cash Flow
-5.14M	-3.82M	7.81M	-8.37M	6.00K	-42.40M

Orion Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.71
• 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 ORN, the sentiment is Positive. The current price of 8.71 is above the 20-day moving average (MA) of 7.01, above the 50-day MA of 6.14, and above the 200-day MA of 6.94, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 85.34 is Negative, neither overbought nor oversold. The STOCH value of 95.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORN.

Orion Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESOA	73 Outperform	$137.59M	7.47	41.26%	0.70%	4.62%	81.73%
GLDD	72 Outperform	$762.13M	11.07	15.67%	―	28.03%	80.90%
ORN	70 Outperform	$342.14M	142.09	2.25%	―	15.58%	―
BBCP	66 Neutral	$372.95M	24.74	5.57%	―	-7.12%	-19.18%
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
MTRX	57 Neutral	$353.69M	―	-14.26%	―	-0.29%	-6.77%
SLND	45 Neutral	$205.19M	―	-53.62%	―	-20.63%	-611.23%

Orion Group Holdings Corporate Events

Orion Group Holdings Targets Expansion in Marine Construction

Orion Group Holdings, Inc. is gearing up for growth with its strategic plans focusing on marine and specialty construction, driven by strong industry tailwinds like the $1.2 trillion Infrastructure Act. The company has completed Phase 1 of its strategic plan, enhancing profitability and financial flexibility, and is now turning its attention to expansion opportunities in specialized marine construction, IT capabilities, and strategic M&A. Orion’s impressive backlog growth and plans to capitalize on new markets like AI-driven data centers indicate promising opportunities for investors interested in the infrastructure sector.