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Willdan Group (WLDN)
NASDAQ:WLDN
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Willdan Group
(NASDAQ:WLDN)
Rating:75Outperform
Price Target:
$52.00
▼(-3.79%Downside)
Willdan Group (WLDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$778.48M
Dividend YieldN/A
Average Volume (3M)129.42K
Price to Earnings (P/E)32.0
Beta (1Y)0.59
Revenue Growth12.40%
EPS Growth81.98%
CountryUS
Employees1,761
SectorIndustrials
Sector Strength93
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.63
Shares Outstanding14,496,824
10 Day Avg. Volume197,407
30 Day Avg. Volume129,422
Financial Highlights & Ratios
PEG Ratio-10.99
Price to Book (P/B)2.54
Price to Sales (P/S)0.00
P/FCF Ratio9.66
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda3.61
Forecast
1Y Price Target
$57.50Price Target Upside6.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 primarily generates revenue through contracts and projects with utilities, government agencies, and private sector clients. Its key revenue streams include energy efficiency services, engineering consulting, and software solutions. The company often enters into performance-based contracts, where it earns fees based on the successful implementation and measurable outcomes of energy savings projects. Additionally, Willdan benefits from strategic partnerships with utility companies and government programs that drive demand for its energy efficiency solutions and infrastructure services. These collaborations often result in long-term contracts, providing a stable revenue base for the company.
Willdan Group Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 33.26%|
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 demonstrates strong financial health with robust revenue growth, improved profitability, and stable balance sheet metrics. The cash flow statement indicates efficient cash conversion, though capital expenditures need management to sustain this strength.Income Statement
Willdan Group has demonstrated strong revenue growth with a 10.9% increase in the TTM period compared to the previous year, indicating a positive trajectory. The gross profit margin stands at 33.9%, reflecting efficient cost management. Net profit margin improved significantly to 4.0% in the TTM, showcasing enhanced profitability. However, the EBIT margin at 5.5% suggests some room for improvement in operational efficiency.78
Positive
Balance Sheet
The company's balance sheet shows a stable equity position with a debt-to-equity ratio of 0.46, indicating moderate leverage. The return on equity (ROE) improved to 9.6% in the TTM, reflecting better utilization of equity capital. The equity ratio is at 50.4%, suggesting a balanced asset financing structure. Overall, the balance sheet reflects stability, though there is scope to further optimize debt levels.70
Positive
Cash Flow
Willdan Group's cash flow statement shows healthy free cash flow growth of 11.1% in the TTM, indicating strong cash-generating capabilities. The operating cash flow to net income ratio is 1.71, suggesting robust cash conversion. The free cash flow to net income ratio of 1.44 further confirms the company's efficiency in translating earnings into cash flow. However, capital expenditures need careful management to sustain cash flow strength.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 565.80M | 510.10M | 429.14M | 353.75M | 390.98M | Gross Profit |
| 202.78M | 179.77M | 143.58M | 135.87M | 129.39M | EBIT |
| 31.35M | 22.07M | -6.12M | -8.54M | -14.60M | EBITDA |
| 49.23M | 40.44M | 11.37M | 8.61M | 4.14M | Net Income Common Stockholders |
| 22.57M | 10.93M | -8.45M | -8.42M | -14.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 74.16M | 23.40M | 8.81M | 11.22M | 28.41M | Total Assets |
| 464.86M | 415.59M | 409.67M | 394.42M | 410.32M | Total Debt |
| 107.75M | 114.10M | 123.39M | 118.23M | 135.15M | Net Debt |
| 33.59M | 90.70M | 114.58M | 107.01M | 106.75M | Total Liabilities |
| 230.52M | 215.74M | 228.17M | 215.20M | 241.16M | Stockholders Equity |
| 234.34M | 199.84M | 181.50M | 179.22M | 169.16M |
| Cash Flow | Free Cash Flow | |||
| 63.66M | 29.29M | -169.00K | 1.30M | 41.95M | Operating Cash Flow |
| 72.07M | 39.21M | 9.43M | 9.80M | 47.02M | Investing Cash Flow |
| -15.74M | -11.46M | -9.53M | -8.45M | -5.06M | Financing Cash Flow |
| -5.57M | -23.84M | 8.36M | -18.53M | -19.01M |
Willdan Group Technical Analysis
Positive
54.05
Price Trends
42.67
Positive
39.42
Positive
40.35
Positive
Market Momentum
3.70
Negative
87.02
Negative
95.06
Negative
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 54.05 is above the 20-day moving average (MA) of 47.30, above the 50-day MA of 42.67, and above the 200-day MA of 40.35, indicating a bullish trend. The MACD of 3.70 indicates Negative momentum. The RSI at 87.02 is Negative, neither overbought nor oversold. The STOCH value of 95.06 is Negative, 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $778.48M | 32.01 | 10.78% | ― | 12.40% | 81.98% | |
75 Outperform | $1.48B | 46.06 | 23.37% | ― | 3.62% | 28.02% | |
72 Outperform | $766.89M | 10.94 | 15.67% | ― | 28.03% | 80.90% | |
72 Outperform | $437.55M | 169.28 | 1.25% | ― | 21.78% | ― | |
68 Neutral | $755.39M | 13.58 | 5.64% | ― | 30.13% | -7.60% | |
65 Neutral | $4.46B | 12.18 | 5.23% | 249.77% | 4.11% | -12.28% | |
57 Neutral | $340.71M | ― | -14.26% | ― | -0.29% | -6.77% |
* Industrials Sector Average
Performance Comparison
WLDN
Willdan Group
54.05
22.05
68.91%
AMRC
Ameresco
13.78
-22.77
-62.30%
GLDD
Great Lakes Dredge & Dock
11.18
2.09
22.99%
MTRX
Matrix Service Company
12.22
0.30
2.52%
LMB
Limbach Holdings
128.22
72.59
130.49%
BWMN
Bowman Consulting Group
25.07
-6.26
-19.98%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.