Willdan Group (WLDN) AI Stock Analysis

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Willdan Group

(NASDAQ:WLDN)

Rating:79Outperform

Price Target:

$65.00

▲(15.37%Upside)

Willdan Group's strong financial performance and positive earnings call results are the primary drivers of its high score. The company has demonstrated significant growth and raised its financial targets, reflecting a positive outlook. While the technical indicators show strong momentum, they also suggest the stock may be overbought. Valuation is relatively high, indicating potential downside risk if growth expectations are not met.

Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$814.00M

Dividend YieldN/A

Average Volume (3M)151.69K

Price to Earnings (P/E)33.4

Beta (1Y)0.59

Revenue Growth12.40%

EPS Growth81.98%

CountryUS

Employees1,761

SectorIndustrials

Sector Strength90

IndustryEngineering & Construction

Share Statistics

EPS (TTM)0.63

Shares Outstanding14,496,824

10 Day Avg. Volume155,357

30 Day Avg. Volume151,687

Financial Highlights & Ratios

PEG Ratio6.23

Price to Book (P/B)1.28

Price to Sales (P/S)0.00

P/FCF Ratio-1.37K

Enterprise Value/Market Cap0.43

Enterprise Value/Revenue0.15

Enterprise Value/Gross Profit1.69

Enterprise Value/Ebitda1.87

Forecast

1Y Price Target

$56.00

Price Target Upside-0.60% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Willdan Group Business Overview & Revenue Model

Company DescriptionWilldan Group, Inc., together with its subsidiaries, provides professional, technical and consulting services primarily in the United States. It operates in two segments, Energy, and Engineering and Consulting. The Energy segment offers comprehensive audit and surveys, program design, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, and measurement and verification services, as well as software and data analytics. The Engineering and Consulting segment provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services. This segment also offers district administration, financial consulting, and federal compliance services; and communications and technology services. It serves public and governmental agencies, including cities, counties, redevelopment agencies, water districts, school districts, and universities; investor and municipal owned energy utilities; state and federal agencies; and commercial and industrial firms, as well as various other special districts and agencies. The company was founded in 1964 and is headquartered in Anaheim, California.

How the Company Makes MoneyWilldan Group makes money primarily by providing consulting and technical services across its various sectors. The company's revenue model is based on service contracts with clients, often structured as fixed-price, cost-plus, or time-and-materials contracts. A significant portion of its revenue comes from energy efficiency services, where it partners with utilities and government agencies to design and implement energy-saving programs. These programs often involve retrofitting existing structures and optimizing energy systems, resulting in utility incentives or government funding. Additionally, Willdan earns revenue from engineering and consulting services related to infrastructure projects and financial consulting for public sector entities. The company's strategic partnerships with utilities and government bodies, coupled with its expertise in energy and infrastructure, are key factors contributing to its earnings.

Willdan Group Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 38.91%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong start to 2025 with record results and strategic growth through acquisitions and contract wins. Despite potential risks related to tariffs and equipment costs, the company's strong financial performance and raised guidance indicate a positive outlook.

Q1-2025 Updates

Positive Updates

Record First Quarter Results

Willdan Group delivered record first quarter results for revenue, adjusted EBITDA, and EPS, surpassing both analyst expectations and internal forecasts. Contract and net revenue each grew 24% year-over-year, adjusted EBITDA rose 31%, GAAP diluted EPS increased 52%, and adjusted diluted EPS was up 58%.

Strategic Acquisitions and Credit Facility Expansion

Completed two acquisitions expanding geography and capabilities, and expanded the credit facility from $152 million to $200 million, extending maturity by five years.

Strong Sector Performance and Contract Wins

Performance was strong across all business lines, with significant contract wins including a $330 million five-year contract with the Los Angeles Department of Water and Power, and other notable contracts with California Public Utility Commission and National Grid in Massachusetts.

Sustainability Report and GHG Emission Reduction

Released a 2024 sustainability report highlighting progress, including helping clients avoid about 100 times the GHG emissions the company emits.

Increased Financial Targets for 2025

Based on strong performance, Willdan raised 2025 financial targets: net revenue of $325 million to $335 million, adjusted EBITDA of $65 million to $68 million, and adjusted diluted EPS of $2.75 to $2.90.

Negative Updates

Tariff and Equipment Price Risks

Potential impact from tariffs and price escalation in specialized equipment could affect project costs and timelines.

Timing of Los Angeles Department of Water and Power Contract

There is a gap in revenue from the LADWP contract in the first half of the year, with significant contributions not expected until the fourth quarter.

Company Guidance

In the first quarter of fiscal year 2025, Willdan Group reported record financial results, with contract and net revenue each increasing by 24% year-over-year. The company achieved a 31% rise in adjusted EBITDA and a 52% increase in GAAP diluted EPS, with adjusted diluted EPS up by 58%. Willdan's revenue composition is projected to include 15% from commercial customers, 44% from state and local governments, and 41% from utilities in 2025. The company completed two acquisitions, contributing $6 million to the quarter's contract revenue. Despite potential tariff risks, Willdan remains confident, reflecting a robust pipeline and increasing demand for energy and infrastructure solutions. The company raised its 2025 financial targets, expecting net revenue between $325 million and $335 million, adjusted EBITDA of $65 million to $68 million, and adjusted diluted EPS of $2.75 to $2.90, citing strong performance and strategic acquisitions.

Willdan Group Financial Statement Overview

Summary

Willdan Group exhibits a strong financial performance across all statements. The income statement reflects robust growth and improved profitability, with a 5.29% increase in revenue and improved net profit margins. The balance sheet shows a healthy leverage position with a moderate debt-to-equity ratio of 0.42 and strong ROE of 9.90%. Cash flows are well-managed, with a 35.53% growth in free cash flow.

Income Statement

Very Positive

The income statement shows strong revenue growth with a 5.29% increase in the TTM period compared to the previous year. Gross profit margins are healthy at approximately 34.52%, and net profit margins have improved to 4.08% in TTM, indicating better cost management. EBIT and EBITDA margins at 5.54% and 7.82% respectively, reflect improved operational efficiency, contributing to a robust financial performance.

Balance Sheet

Positive

The company maintains a solid balance sheet with a moderate debt-to-equity ratio of 0.42, suggesting a balanced capital structure. ROE is strong at 9.90%, indicating effective utilization of equity capital. The equity ratio stands at 52.10%, highlighting financial stability, though there is room for improvement by reducing debt levels further.

Cash Flow

Positive

The cash flow statement reveals a significant improvement in free cash flow, growing by 35.53% in the TTM period. The operating cash flow to net income ratio of 1.99 indicates strong cash generation relative to net income. Free cash flow to net income ratio of 1.63 further underscores the company's good cash management practices, supporting future growth initiatives.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Breakdown
Income Statement		Total Revenue
595.70M	565.80M	510.10M	429.14M	353.75M	390.98M
	Gross Profit
205.68M	202.78M	179.77M	143.58M	135.87M	129.39M
	EBIT
33.03M	31.35M	22.07M	-6.12M	-8.54M	-14.60M
	EBITDA
46.57M	49.23M	40.44M	11.37M	8.61M	4.14M
	Net Income Common Stockholders
24.32M	22.57M	10.93M	-8.45M	-8.42M	-14.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.36M	74.16M	23.40M	8.81M	11.22M	28.41M
	Total Assets
471.16M	464.86M	415.59M	409.67M	394.42M	410.32M
	Total Debt
104.04M	107.75M	114.10M	123.39M	118.23M	135.15M
	Net Debt
65.67M	33.59M	90.70M	114.58M	107.01M	106.75M
	Total Liabilities
225.64M	230.52M	215.74M	228.17M	215.20M	241.16M
	Stockholders Equity
245.52M	234.34M	199.84M	181.50M	179.22M	169.16M
Cash Flow		Free Cash Flow
39.68M	63.66M	29.29M	-169.00K	1.30M	41.95M
	Operating Cash Flow
48.44M	72.07M	39.21M	9.43M	9.80M	47.02M
	Investing Cash Flow
-48.55M	-15.74M	-11.46M	-9.53M	-8.45M	-5.06M
	Financing Cash Flow
-8.44M	-5.57M	-23.84M	8.36M	-18.53M	-19.01M

Willdan Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price56.34

Price Trends

50DMA

44.97

Positive

100DMA

40.96

Positive

200DMA

41.13

Positive

Market Momentum

MACD

3.54

Positive

RSI

75.16

Negative

STOCH

74.14

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLDN, the sentiment is Positive. The current price of 56.34 is above the 20-day moving average (MA) of 53.07, above the 50-day MA of 44.97, and above the 200-day MA of 41.13, indicating a bullish trend. The MACD of 3.54 indicates Positive momentum. The RSI at 75.16 is Negative, neither overbought nor oversold. The STOCH value of 74.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLDN.

Willdan Group Risk Analysis

Willdan Group disclosed 43 risk factors in its most recent earnings report. Willdan Group reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Willdan Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLDN	79 Outperform	$814.00M	33.37	10.78%	―	12.40%	81.98%
LMB	75 Outperform	$1.57B	50.15	23.37%	―	3.62%	28.02%
GLDD	72 Outperform	$786.59M	11.39	15.67%	―	28.03%	80.90%
BWMN	72 Outperform	$474.25M	186.63	1.25%	―	21.78%	―
AMRC	69 Neutral	$834.82M	15.78	5.64%	―	30.13%	-7.60%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
MTRX	54 Neutral	$338.78M	―	-14.26%	―	-0.29%	-6.77%

* Industrials Sector Average

Performance Comparison

WLDN

Willdan Group

56.34

26.86

91.11%

AMRC

Ameresco

16.01

-16.97

-51.46%

GLDD

Great Lakes Dredge & Dock

11.64

2.86

32.57%

MTRX

Matrix Service Company

12.29

1.86

17.83%

LMB

Limbach Holdings

141.84

85.62

152.29%

BWMN

Bowman Consulting Group

27.64

-3.34

-10.78%

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.