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Bowman Consulting Group (BWMN)
NASDAQ:BWMN
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Bowman Consulting Group (BWMN) AI Stock Analysis

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BWMN

Bowman Consulting Group

(NASDAQ:BWMN)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$45.00
▲(4.87% Upside)
Bowman Consulting Group's strong earnings call performance and technical indicators are the primary drivers of its high score. Financial performance is solid, though there is room for improvement in profitability. The high P/E ratio suggests potential overvaluation, which slightly offsets the positive aspects.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Bowman's services, enhancing its market position and supporting long-term financial stability.
Strategic Innovation
Investment in innovation through the BIG Fund positions Bowman to leverage new technologies, driving future growth and competitive advantage.
New Contract Win
Winning the IDOT contract expands Bowman's footprint in Illinois, offering potential for future projects and reinforcing its reputation in infrastructure services.
Negative Factors
Cash Flow Challenges
Decreased cash flow from operations can strain financial flexibility, impacting Bowman's ability to invest in growth and manage liabilities effectively.
Margin Pressure
Rising labor costs may compress margins, affecting profitability and potentially limiting Bowman's ability to reinvest in its business.
Low Net Profit Margin
A low net profit margin suggests inefficiencies or high costs, which could hinder Bowman's ability to generate sustainable profits over the long term.

Bowman Consulting Group (BWMN) vs. SPDR S&P 500 ETF (SPY)

Bowman Consulting Group Business Overview & Revenue Model

Company DescriptionBowman Consulting Group Ltd. provides a range of real estate, energy, infrastructure, and environmental management solutions in the United States. It offers civil and site engineering services, such as conceptual land planning, environmental consulting and permitting, planning/zoning and entitlements, roadway and highway designs, erosion and sediment designs, stormwater management designs, construction administration, traffic studies, floodplain studies, and utility relocation designs; and commissioning and energy efficiency services comprise construction observation, direct systems functional performance testing, system development readiness checklist, post occupancy review, review of construction documents, deferred/seasonal functional testing, final commissioning report, and commissioning review of submittals. The company also provides construction management services, including constructability review, value engineering, budgeting and cost estimating, interagency and utility coordination, onsite observation and report evaluation, public communication and outreach, and resident engineer services, as well as bid solicitation, documentation, and preparation services; and environmental consulting services consisting of wetlands and waters of the U.S. delineations, natural resources inventories, wildlife and vegetation surveys, threatened and endangered species surveys, endangered species conservation and management, wetland creation and enhancement design, NEPA documentation, section 404/401 permitting and compliance, NPDES permitting, and phase I environmental site assessment. In addition, it offers landscape architecture, land procurement and right-of-way acquisition, structural engineering, surveying and geospatial engineering, and transportation and water resources engineering services, as well as mechanical, electrical, and plumbing engineering services. Bowman Consulting Group Ltd. was incorporated in 1995 and is headquartered in Reston, Virginia.
How the Company Makes MoneyBowman Consulting Group generates revenue primarily through fee-based services offered in engineering, land surveying, and consulting. The company's revenue streams are driven by project-based contracts with clients across various industries, including real estate development, infrastructure, energy, and public sector projects. Revenue is earned by providing expertise and delivering services such as site planning, civil engineering design, environmental assessments, and land surveying. Bowman may also form strategic partnerships with other firms to enhance service offerings and expand market reach, contributing to its earnings.

Bowman Consulting Group Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong financial performance with record revenues and margins, significant bookings, and strategic investments in innovation. However, there were challenges related to cash flow management, stock compensation expenses, and potential future margin pressures.
Q2-2025 Updates
Positive Updates
Record-Setting Financial Performance
Second quarter achieved record gross revenue of $122 million, net revenue of $108 million, and adjusted EBITDA of $20.2 million with a margin of 18.7%.
Significant Growth in Core Verticals
17% increase in gross contract revenue, 15% increase in net service billing, and over 8% organic net service billing growth.
Strong Bookings and Backlog Growth
Record bookings well balanced across markets, with a backlog increase to nearly $87 million, 25% higher than the previous year.
Innovation and Investment Initiatives
Formation of Bowman Innovative Growth Fund (BIG Fund) with a $25 million commitment to drive innovation in technology and digital services.
Negative Updates
Cash Flow Challenges
Cash flow from operations was down due to accrued bonuses payment and increased working capital requirements.
Stock Compensation Expense Management
Non-cash stock compensation expense was $3.1 million, down from $6.1 million last year, indicating structural changes in compensation plans.
Margin Pressure Concerns
Potential margin pressure in the second half of the year due to inflationary labor costs.
Company Guidance
During the Bowman Consulting Group's second quarter 2025 earnings call, the company reported a 17% increase in gross contract revenue and a 15% increase in net service billing, with organic net service billing growth at over 8%. The adjusted EBITDA surged by nearly 51%, while the adjusted EBITDA margin hit a record 18.7%, up 440 basis points compared to the previous year. Gross revenue and net revenue for the quarter were $122 million and $108 million, respectively. The company's book-to-bill ratio remained well above 1, and backlog increased by 25% compared to the prior year. Management also raised their 2025 full-year guidance, projecting net revenues between $430 million and $442 million, with adjusted EBITDA ranging from $71 million to $77 million. Additionally, the company highlighted a strategic focus on operational efficiency, labor cost management, and innovation investments through the newly established Bowman Innovative Growth Fund.

Bowman Consulting Group Financial Statement Overview

Summary
Bowman Consulting Group exhibits solid financial health with consistent revenue growth and strong cash flow management. Profitability margins are improving, but there is potential for further enhancement. The balance sheet reflects a stable financial position with a prudent approach to debt management.
Income Statement
75
Positive
Bowman Consulting Group shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.96%. The gross profit margin remains strong at 51.28%, indicating efficient cost management. However, the net profit margin is relatively low at 2.37%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved over time, reflecting better operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved to 0.45, indicating a balanced approach to leveraging. Return on equity is modest at 4.45%, suggesting moderate profitability from shareholders' investments. The equity ratio stands at 46.39%, showing a stable capital structure with a good portion of assets financed by equity.
Cash Flow
80
Positive
Bowman Consulting Group demonstrates strong cash flow management, with a free cash flow growth rate of 4.93% in the TTM period. The operating cash flow to net income ratio is 0.23, indicating healthy cash generation relative to net income. The free cash flow to net income ratio is high at 88.37%, highlighting effective cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue462.18M426.56M346.26M261.71M149.97M122.02M
Gross Profit237.02M222.80M176.03M135.13M75.44M55.51M
EBITDA40.37M25.97M17.66M17.29M6.41M4.04M
Net Income10.94M2.80M-6.62M5.00M299.00K990.00K
Balance Sheet
Total Assets538.25M505.88M402.79M255.76M138.17M63.64M
Cash, Cash Equivalents and Short-Term Investments15.54M6.70M20.69M13.28M20.62M386.00K
Total Debt112.23M150.44M140.69M81.03M28.01M18.90M
Total Liabilities288.60M259.77M239.50M132.90M59.76M46.50M
Stockholders Equity249.64M246.12M163.28M122.86M78.41M17.14M
Cash Flow
Free Cash Flow30.94M23.68M9.63M8.27M3.81M9.43M
Operating Cash Flow35.01M24.30M11.72M9.17M4.72M10.77M
Investing Cash Flow-8.72M-27.47M-27.16M-18.75M-21.53M-2.41M
Financing Cash Flow-33.89M-10.82M22.84M2.25M37.05M-8.48M

Bowman Consulting Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price42.91
Price Trends
50DMA
37.85
Positive
100DMA
32.13
Positive
200DMA
27.90
Positive
Market Momentum
MACD
1.26
Positive
RSI
61.53
Neutral
STOCH
72.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWMN, the sentiment is Positive. The current price of 42.91 is above the 20-day moving average (MA) of 41.66, above the 50-day MA of 37.85, and above the 200-day MA of 27.90, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 72.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWMN.

Bowman Consulting Group Risk Analysis

Bowman Consulting Group disclosed 55 risk factors in its most recent earnings report. Bowman Consulting 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

Bowman Consulting Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
1.52B43.1113.22%13.82%96.16%
77
Outperform
$740.23M69.254.26%19.48%
68
Neutral
1.62B26.475.62%22.85%8.26%
64
Neutral
359.84M-12.080.00%5.64%-16.41%
64
Neutral
320.66M28.646.82%15.85%0.00%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BWMN
Bowman Consulting Group
42.91
19.12
80.37%
AMRC
Ameresco
30.81
-6.98
-18.47%
MTRX
Matrix Service Company
12.82
1.40
12.26%
ORN
Orion Group Holdings
8.07
2.05
34.05%
WLDN
Willdan Group
103.33
63.04
156.47%

Bowman Consulting Group Corporate Events

Stock BuybackBusiness Operations and Strategy
Bowman Consulting Announces New Share Repurchase Program
Neutral
Jun 10, 2025

On June 6, 2025, Bowman Consulting Group announced a new share repurchase program, allowing the company to buy back up to $25 million of its common stock over the next 12 months starting June 9, 2025. This program replaces the previous authorization and reflects Bowman’s strategic focus on organic and acquisitive growth. The repurchases will be based on market conditions and capital priorities, with no obligation to repurchase a specific amount, providing flexibility in execution.

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.Date of analysis: Aug 19, 2025