Southland Holdings (SLND) AI Stock Analysis

• Market Cap: $205.19M
• Dividend Yield: N/A
• Average Volume (3M): 38.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -20.63%
• EPS Growth: -611.23%
• Country: US
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): -0.08
• Shares Outstanding: 53,996,403
• 10 Day Avg. Volume: 59,534
• 30 Day Avg. Volume: 38,843
• PEG Ratio: -15.96
• Price to Book (P/B): 1.03K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.43
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: -6.95
• Enterprise Value/Ebitda: -2.46
• 1Y Price Target: $5.00
• Price Target Upside: 31.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Southland Holdings faces significant financial challenges with negative profitability and high leverage, which weigh heavily on the overall score. The technical analysis shows positive momentum, but with caution due to overbought indicators. Valuation remains unattractive due to negative earnings. The earnings call adds a moderate positive outlook due to strong segment performance and strategic initiatives, but the financial risks and revenue declines are significant concerns.

Southland Holdings Business Overview & Revenue Model

Company Description

Southland Holdings (SLND) is a prominent infrastructure construction company that operates across various sectors, including transportation, water resources, and facility construction. The company specializes in delivering large-scale infrastructure projects, such as highways, bridges, tunnels, and water treatment facilities, leveraging its expertise to meet the complex demands of both public and private sector clients.

How the Company Makes Money

Southland Holdings makes money primarily through contracts awarded for infrastructure projects. The company's revenue streams are largely derived from government contracts for public infrastructure projects, as well as private sector projects. Southland Holdings bids on and secures projects that range from transportation infrastructure like roads and bridges to environmental projects involving water treatment and management. Additionally, the company may form partnerships or joint ventures to undertake large-scale projects, which can enhance its capability to secure and execute such projects effectively. Its earnings are also influenced by its ability to manage project costs and timelines efficiently, ensuring profitability across its portfolio.

Southland Holdings Financial Statement Overview

Summary

Southland Holdings is grappling with significant financial challenges, including negative profitability, declining revenues, and high leverage. The negative income and cash flow trends suggest operational inefficiencies and potential liquidity risks, with high debt levels posing substantial financial risk.

Income Statement

Southland Holdings exhibits significant challenges in its income statement with consistent net losses and declining revenue over the past years. The Gross Profit Margin has turned negative, indicating cost issues, while the Net Profit Margin is also negative due to sustained losses. The Revenue Growth Rate has been negative, reflecting a declining revenue trend, and EBIT and EBITDA margins are also negative, indicating operational inefficiency.

Balance Sheet

The balance sheet shows a relatively high Debt-to-Equity ratio, which indicates high leverage and potential financial risk. The Return on Equity is negative due to losses, and the Equity Ratio is relatively low, suggesting a heavier reliance on debt financing. Despite these concerns, the company maintains a reasonable level of cash and equivalents, offering some liquidity buffer.

Cash Flow

Cash flow analysis reveals challenges, with negative Free Cash Flow in recent years and a low Operating Cash Flow to Net Income Ratio, indicating inefficiencies in converting sales into cash. The Free Cash Flow to Net Income Ratio is also unfavorable, highlighting issues in generating cash from operations despite capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
980.18M	1.16B	1.16B	1.28B	1.06B
	Gross Profit
-63.04M	35.81M	140.93M	114.19M	93.40M
	EBIT
-126.31M	-31.38M	82.70M	56.05M	43.75M
	EBITDA
-99.61M	22.76M	128.40M	103.52M	88.12M
	Net Income Common Stockholders
-105.36M	-19.25M	60.54M	38.72M	33.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.19M	49.18M	57.91M	63.34M	30.89M
	Total Assets
1.20B	1.20B	1.13B	1.04B	1.12B
	Total Debt
321.05M	319.69M	300.20M	270.47M	238.91M
	Net Debt
248.86M	270.51M	242.29M	207.13M	208.02M
	Total Liabilities
1.03B	940.50M	765.42M	733.40M	858.01M
	Stockholders Equity
163.66M	249.62M	349.44M	291.29M	259.02M
Cash Flow		Free Cash Flow
-5.49M	-21.11M	-70.97M	-110.21M	-81.17M
	Operating Cash Flow
1.93M	-10.26M	-66.20M	-91.41M	-50.17M
	Investing Cash Flow
3.23M	4.49M	5.56M	-8.50M	195.82M
	Financing Cash Flow
18.78M	-2.59M	20.14M	31.44M	-47.95M

Southland Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLND, the sentiment is Positive. The current price of 3.8 is above the 20-day moving average (MA) of 3.34, above the 50-day MA of 3.23, and above the 200-day MA of 3.39, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 73.65 is Negative, neither overbought nor oversold. The STOCH value of 72.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLND.

Southland Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESOA	73 Outperform	$142.60M	7.74	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%	―
AMRC	69 Neutral	$747.50M	14.54	5.64%	―	30.13%	-7.60%
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%

Southland Holdings Corporate Events

Southland Holdings Appoints Rudy Renda as Director

On March 26, 2025, Southland Holdings appointed Rudy Renda as a Class II director, filling a vacant board seat and maintaining the board’s size at seven members. Rudy Renda, who is the Executive Vice President and COO of the company, has been pivotal in executing complex projects and holds a significant role in the company’s strategic operations. Previously, in December 2024, Southland Holdings issued shares to Rudy Renda to settle debts from promissory notes, and in July 2024, the company completed a real estate transaction involving a sale and leaseback of properties for $42.5 million, with Rudy and Frank Renda holding a minority interest in the purchasing entity.

Southland Holdings Announces CFO Resignation and Successor

On March 13, 2025, Cody Gallarda announced his resignation as Executive Vice President, Chief Financial Officer, and Treasurer of Southland Holdings, Inc., effective March 28, 2025, to pursue another opportunity. His departure was amicable, with no disagreements regarding the company’s financial practices. Keith Bassano, currently Vice President of Finance, will succeed him, bringing over 15 years of experience in the engineering and construction industry. The company is confident in Mr. Bassano’s ability to lead its financial strategy and drive operational excellence.