NV5 Holdings (NVEE) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 639.33K
• Price to Earnings (P/E): 38.1
• Beta (1Y): 0.69
• Revenue Growth: 9.90%
• EPS Growth: -32.50%
• Country: US
• Employees: 4,714
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): 0.49
• Shares Outstanding: 65,646,835
• 10 Day Avg. Volume: 647,663
• 30 Day Avg. Volume: 639,330
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.75
• Price Target Upside: 54.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

NV5 Holdings exhibits strong financial performance and positive earnings call sentiment, supporting its growth potential. However, high valuation metrics and technical indicators suggest caution. Improvement in net profit margins and ROE could enhance future shareholder value. The stock's mixed technical signals and elevated P/E ratio contribute to a moderate overall score.

Positive Factors

Earnings

Revenue of $247 million was above consensus expectations for $243 million.

Valuation

Shares are valued at 7.6x the 2025 EBITDA estimate, which is below the 5-year average of 11.6x, suggesting potential for valuation growth.

Negative Factors

Financial Performance

The 4Q24 gross profit margin was below forecast due to lower margins from data center and geospatial work.

Guidance

Management lowered 2024 guidance with revenue now expected to be $939-$943 million compared to prior guidance of $944-$950 million.

NV5 Holdings Business Overview & Revenue Model

Company Description

NV5 Global offers professional and technical engineering and consulting solutions to public and private sector clients in the infrastructure, utility services, construction, real estate, and environmental markets in the United States and internationally. It operates through three segments: Infrastructure; Building, Technology & Sciences; and Geospatial Solutions. The company provides site selection and planning, design, water resources, transportation, structural engineering, land development, surveying, power delivery, building code compliance, and other services; and construction materials testing and engineering, geotechnical engineering and consulting, and forensic consulting services. It also provides governmental outsourcing and consulting, and technical outsourcing services; and geospatial data analytic and mapping services. In addition, it offers mechanical, electrical, and plumbing design; commissioning; energy performance, management, and optimization; climate change and reducing CO2 emissions; building program management; acoustical design consulting; and audiovisual–security and surveillance–information technology–data center services. Further, the company provides various services, such as investigating and analyzing environmental conditions, and recommending corrective measures and procedures; occupational health and safety services; radiation exposure and protection, and nuclear safety and industrial hygiene analyses services; hydrogeological modeling and environmental programs; water resource planning, monitoring, and environmental management of wastewater facilities; solid waste landfill investigations; permitting and compliance; storm water pollution; environmental impact statement support; agricultural waste management and permitting; and wetland evaluations. The company was formerly known as NV5 Holdings, Inc. and changed its name to NV5 Global, Inc. in December 2015. NV5 Global, Inc. was founded in 1949 and is headquartered in Hollywood, Florida.

How the Company Makes Money

NV5 Holdings generates revenue through a diverse range of engineering and consulting services. The company's primary revenue streams include fees charged for professional services in engineering, consulting, and project management across its various sectors. NV5 often enters into contracts with government agencies and private sector clients for infrastructure development, environmental compliance, and energy projects. Additionally, strategic acquisitions of complementary service providers enhance its service offerings and expand market reach, contributing to its earnings growth.

NV5 Holdings Financial Statement Overview

Summary

NV5 Holdings demonstrates strong financial performance with consistent revenue growth and operational efficiency. The balance sheet is robust with prudent financial leverage, and cash flow management is efficient, although there is room for improvement in net profit margins and ROE.

Income Statement

NV5 Holdings demonstrates strong financial performance with a consistent upward trajectory in revenue, showing a TTM (Trailing-Twelve-Months) revenue of $879 million. Despite a slight decrease in revenue from the previous annual period, the company maintains stable profitability, evidenced by a gross profit margin of 56.1% and a net profit margin of 3.3% for TTM. The EBIT and EBITDA margins are also respectable at 4.9% and 12.0%, respectively, reflecting operational efficiency. However, the net profit margin has decreased over time, indicating potential pressures on bottom-line profitability.

Balance Sheet

The balance sheet of NV5 Holdings is robust, with a solid equity base of $843 million, leading to an equity ratio of 64.2% for TTM, suggesting financial stability. The company maintains a manageable debt-to-equity ratio of 0.28, showcasing prudent financial leverage. However, the return on equity (ROE) for TTM is relatively moderate at 3.4%, highlighting room for improvement in generating returns on shareholder investment. The company's asset base continues to grow, supporting its capacity for future growth and expansion.

Cash Flow

NV5 Holdings exhibits strong cash flow management, with a healthy operating cash flow to net income ratio of 2.64 for TTM, indicating efficient conversion of profits into cash. The free cash flow has improved to $51.9 million for TTM, showing a significant growth rate compared to previous periods. This positive free cash flow trend enhances the company's ability to fund operations and investments without relying heavily on external financing. However, fluctuations in investing cash flows suggest potential variability in capital allocation strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
941.26M	861.74M	786.78M	706.71M	659.30M
	Gross Profit
483.23M	430.36M	385.97M	359.31M	334.54M
	EBIT
43.43M	61.18M	66.18M	68.34M	44.15M
	EBITDA
110.05M	119.20M	123.06M	123.51M	99.11M
	Net Income Common Stockholders
27.98M	44.61M	49.97M	47.15M	21.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.36M	44.82M	38.54M	47.98M	64.91M
	Total Assets
1.32B	1.17B	935.72M	961.94M	881.17M
	Total Debt
266.23M	228.71M	54.85M	131.80M	307.52M
	Net Debt
215.87M	183.88M	16.31M	83.82M	242.61M
	Total Liabilities
482.34M	394.80M	241.48M	337.22M	487.11M
	Stockholders Equity
833.01M	775.79M	694.24M	624.72M	394.07M
Cash Flow		Free Cash Flow
40.40M	45.04M	78.29M	87.54M	86.15M
	Operating Cash Flow
57.32M	62.21M	93.98M	101.44M	96.01M
	Investing Cash Flow
-80.16M	-205.79M	-21.51M	-80.26M	-9.07M
	Financing Cash Flow
28.57M	149.85M	-81.91M	-38.11M	-53.86M

NV5 Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVEE, the sentiment is Positive. The current price of 18.66 is above the 20-day moving average (MA) of 16.67, above the 50-day MA of 17.75, and below the 200-day MA of 20.79, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 89.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVEE.

NV5 Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEE	72 Outperform	$1.22B	38.12	3.79%	―	9.90%	-32.50%
WLDN	72 Outperform	$575.10M	25.12	10.40%	―	10.92%	100.59%
LMB	72 Outperform	$1.20B	40.09	22.50%	―	0.47%	43.12%
AMRC	68 Neutral	$631.24M	11.29	5.92%	―	28.76%	-9.56%
GLDD	66 Neutral	$648.01M	11.39	13.73%	―	29.35%	309.98%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
TPC	55 Neutral	$1.21B	―	-13.50%	―	11.51%	5.50%

NV5 Holdings Corporate Events

NV5 Holdings Reports Strong Q1 2025 Financial Results

NV5 Global, Inc. announced strong financial results for the first quarter of 2025, with a 10% increase in gross revenues to $234 million and a 456% rise in net income to $0.4 million compared to the same period in 2024. The company also reported a significant 96% growth in cash flows from operations, totaling $38 million, and reaffirmed its positive full-year 2025 guidance, indicating confidence in continued revenue and profitability growth.

Spark’s Take on NVEE Stock

According to Spark, TipRanks’ AI Analyst, NVEE is a Neutral.

NV5 Holdings presents a mixed picture with strong revenue growth and strategic initiatives for future improvements, yet faces challenges with declining net income and cash flow issues. High valuation and technical indicators suggest cautious optimism. The company’s large backlog and focus on margin improvement offer potential upside if execution is successful in the coming periods.

To see Spark’s full report on NVEE stock, click here.

NV5 Holdings Reports Strong 2024 Financial Performance

NV5 Global reported strong financial performance for 2024, with a 10% increase in gross revenues and a 13% rise in gross profit compared to 2023. Despite a decrease in net income, the company successfully completed key acquisitions to bolster its service areas and anticipates further growth in 2025, supported by a robust acquisition pipeline and revenue guidance between $1.026 billion and $1.045 billion.