Southland Holdings (SLND) AI Stock Analysis

• Market Cap: $173.70M
• Dividend Yield: N/A
• Average Volume (3M): 56.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -9.10%
• EPS Growth: 21.10%
• Country: US
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -1.39
• Shares Outstanding: 54,113,037
• 10 Day Avg. Volume: 83,877
• 30 Day Avg. Volume: 56,089
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -28.46
• Enterprise Value/Market Cap: 2.99
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 11.35
• Enterprise Value/Ebitda: 47.08
• 1Y Price Target: $8.00
• Price Target Upside: 152.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.63
• Revenue Forecast (FY): $938.42M

• Rating: 43 Neutral
• Price Target: $3.00 ▼(-5.36% Downside)

Southland Holdings' overall stock score is primarily impacted by its weak financial performance, characterized by high leverage, negative cash flows, and declining profitability. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are unfavorable with a negative P/E ratio. Despite some positive developments highlighted in the earnings call, such as improved gross profit margins and a strong backlog, the company's financial challenges and market sentiment remain significant concerns.

Positive Factors

Strong Backlog

A strong backlog indicates sustained demand and future revenue visibility, providing a stable foundation for long-term growth and operational planning.

Civil Segment Performance

Strong performance in the Civil segment highlights operational efficiency and market demand, supporting future profitability and competitive positioning.

Positive Market Outlook

A positive market outlook for infrastructure projects suggests sustained opportunities for growth, driven by public and private sector investments.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term financial health.

Net Loss

Continued net losses indicate challenges in achieving profitability, which can hinder reinvestment and growth prospects over the long term.

Liquidity Challenges

Negative cash flows highlight liquidity issues, constraining the company's ability to fund operations and invest in growth opportunities.

Southland Holdings Business Overview & Revenue Model

Company Description

Southland Holdings, Inc. engages in specialty infrastructure construction business in North America and internationally. The company operates through two segments, Civil and Transportation. The Civil segment designs and constructs water pipelines, pump stations, lift stations, water and wastewater treatment plants, concrete and structural steel, outfall, and tunneling. The Transportation segment designs and constructs bridges, roadways, marine, dredging, ship terminals and piers, and specialty structures and facilities. Southland Holdings, Inc. was founded in 1900 and is headquartered in Grapevine, Texas.

How the Company Makes Money

Southland Holdings generates revenue primarily through contracts for construction and engineering services. The company's revenue model is based on fixed-price and cost-plus contracts, which allows it to earn fees based on project completion and overhead costs. Key revenue streams include large-scale infrastructure projects, such as highways, bridges, and water treatment facilities, which often involve multi-year contracts with government agencies and large corporations. Additionally, SLND benefits from strategic partnerships with other construction firms and subcontractors, enhancing its bid competitiveness and project execution capabilities. The company's focus on long-term projects and repeat business with established clients contributes significantly to its earnings.

Southland Holdings Financial Statement Overview

Summary

Southland Holdings faces significant financial challenges, with declining profitability and revenue growth, high leverage, and negative cash flows. The income statement shows a negative net profit margin and low gross profit margin, while the balance sheet indicates financial risk due to high debt. Cash flow issues further exacerbate the situation, highlighting inefficiencies in cash generation.

Income Statement

Southland Holdings shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth of 4.47%, but the company is struggling with profitability as evidenced by a negative net profit margin of -10.08% and a negative EBIT margin. The gross profit margin is low at 4.89%, reflecting challenges in cost management. Historical data shows a declining trend in revenue and profitability, which is concerning.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of 3.88 in the TTM period, indicating potential financial risk. The return on equity is negative, reflecting losses and poor returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing. Overall, the company's financial stability is weak, with high leverage posing a risk.

Cash Flow

Cash flow analysis shows negative operating and free cash flows in the TTM period, indicating liquidity challenges. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, highlighting inefficiencies in converting income to cash. The company needs to improve its cash generation capabilities to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	935.46M	980.18M	1.16B	1.16B	1.28B	1.06B
Gross Profit	45.78M	-63.04M	35.81M	140.93M	114.19M	93.40M
EBITDA	11.04M	-103.02M	-852.00K	130.53M	107.20M	87.02M
Net Income	-94.28M	-105.36M	-19.25M	60.54M	38.72M	33.67M
Balance Sheet
Total Assets	1.14B	1.20B	1.20B	1.13B	1.04B	1.12B
Cash, Cash Equivalents and Short-Term Investments	57.34M	72.19M	49.18M	57.91M	63.34M	30.89M
Total Debt	332.37M	321.05M	319.69M	300.20M	270.47M	238.91M
Total Liabilities	1.05B	1.03B	940.50M	765.42M	733.40M	858.01M
Stockholders Equity	74.98M	163.66M	249.62M	349.44M	291.29M	259.02M
Cash Flow
Free Cash Flow	-8.07M	-5.49M	-21.11M	-70.97M	-109.37M	-81.17M
Operating Cash Flow	-3.42M	1.93M	-10.26M	-66.20M	-90.57M	-50.17M
Investing Cash Flow	4.02M	3.23M	4.49M	5.56M	-8.50M	195.82M
Financing Cash Flow	-49.92M	18.78M	-2.59M	20.14M	30.60M	-47.95M

Southland Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLND, the sentiment is Negative. The current price of 3.17 is below the 20-day moving average (MA) of 3.89, below the 50-day MA of 4.24, and below the 200-day MA of 3.88, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 19.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLND.

Southland Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	76 Outperform	$860.87M	10.68	17.37%	―	12.53%	35.68%
ORN	64 Neutral	$395.02M	41.03	6.31%	―	7.02%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ESOA	60 Neutral	$147.36M	51.66	5.24%	1.02%	9.52%	-88.22%
BBCP	56 Neutral	$323.77M	38.73	3.32%	―	-8.98%	-38.23%
MTRX	47 Neutral	$428.61M	-14.39	-16.33%	―	17.16%	24.10%
SLND	43 Neutral	$173.70M	―	-84.16%	―	-9.10%	21.10%

Southland Holdings Corporate Events

Southland Holdings Reports Q3 2025 Financial Results

Southland Holdings, Inc., headquartered in Grapevine, Texas, is a prominent provider of specialized infrastructure construction services, operating in sectors such as bridges, tunneling, transportation, and water treatment across North America and globally.

Southland Holdings’ Earnings Call: Mixed Sentiments and Future Prospects

Southland Holdings, Inc.’s recent earnings call revealed a mixed sentiment, highlighting both significant achievements and ongoing challenges. The company reported notable improvements in revenue and gross profit margins, driven by strong performance in the Civil segment and a positive market outlook. However, these gains were tempered by substantial net losses and increased interest expenses, with legacy project challenges continuing to impact financial results.

Southland Holdings’ Earnings Call: Mixed Results and Optimistic Outlook

Southland Holdings, Inc. recently held its earnings call, revealing a mixed bag of results for the second quarter of 2025. The company showcased a significant improvement in gross profit margins and strong performance in its Civil segment, yet faced hurdles such as a decline in overall revenue, increased interest expenses, and a net loss. While the backlog and new awards provide an optimistic outlook, the financial challenges indicate a need for caution moving forward.

Southland Holdings Faces Investor Concerns Over Lack of Insider Trading Arrangements

Southland Holdings, Inc. faces a potential business risk due to the lack of adoption or termination of any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement by its directors or officers during the last fiscal quarter. This inaction could indicate a lack of strategic financial planning or flexibility in managing insider trading activities, potentially impacting investor confidence. The absence of such arrangements might also suggest a missed opportunity to mitigate risks associated with market volatility and insider trading regulations. Consequently, stakeholders may view this as a sign of insufficient proactive measures in corporate governance, which could affect the company’s market perception and financial stability.

Southland Holdings Reports Mixed Q2 2025 Results

Southland Holdings, Inc., headquartered in Grapevine, Texas, is a prominent provider of specialized infrastructure construction services, operating across various sectors including transportation, water, and wastewater treatment. The company recently reported its financial results for the second quarter of 2025, highlighting a mixed performance.