Bowman Consulting Group (BWMN) AI Stock Analysis

• Market Cap: $420.02M
• Dividend Yield: N/A
• Average Volume (3M): 119.87K
• Price to Earnings (P/E): 175.7
• Beta (1Y): 1.09
• Revenue Growth: 23.19%
• EPS Growth: N/A
• Country: US
• Employees: 2,046
• Sector: Industrials
• Sector Strength: 70
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• Shares Outstanding: 17,263,666
• 10 Day Avg. Volume: 209,738
• 30 Day Avg. Volume: 119,870
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.98
• Price to Cash Flow (P/CF): 8.80
• P/FCF Ratio: 10.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $33.30
• Price Target Upside: 33.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Bowman Consulting Group's stock score of 61 reflects a company with strong revenue growth and a positive outlook for 2025, as detailed in the earnings call. However, concerns about inconsistent profitability, technical signals pointing to potential downward pressure, and valuation issues due to a negative P/E ratio temper the optimism. The combination of these factors results in a moderate score, highlighting both potential and risks.

Positive Factors

Backlog Growth

The backlog at year-end stood at $399mn, representing a 30% year-over-year increase.

Earnings

The company's earnings beat expectations with net revenue of $101.6M, surpassing the consensus by 1.3%.

Financial Performance

Bowman reported a better-than-expected Q4: Adj. EBITDA of $17mn, which was 4% above consensus expectations.

Negative Factors

Earnings Miss

Adjusted EPS missed at $0.30, versus consensus $0.39, but EPS results are always muddy given effective tax rates comparability.

Interest Rate Exposure

Revenue exposure to interest-rate sensitive buildings work is around 40%, which could pose risks for organic growth.

Price Objective

The price objective was lowered to $30.50 from $36.50 to account for greater uncertainty in construction markets.

Bowman Consulting Group Business Overview & Revenue Model

Company Description

Bowman 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 Money

Bowman Consulting Group makes money through fees charged for its professional services, which include engineering design, land surveying, environmental consulting, and land planning. The company's revenue streams are primarily driven by contracts with clients in sectors such as residential and commercial real estate development, energy, and infrastructure. Bowman Consulting Group benefits from long-term relationships and recurring business with a diverse client base, ranging from private developers to government agencies. Strategic partnerships and collaborations with other firms can also play a role in expanding its service offerings and client reach, thereby contributing to its earnings.

Bowman Consulting Group Financial Statement Overview

Summary

Bowman Consulting Group has showcased impressive revenue growth and improved leverage over recent years. However, inconsistent profitability and fluctuating cash flow conversion ratios indicate underlying operational challenges. While the company is strengthening its financial position, attention to operational efficiency and stable profitability is needed for sustained growth.

Income Statement

Revenue growth has been strong, rising from $113.7M in 2019 to $346.3M in 2023, showing a positive trend. However, the company has experienced fluctuating profitability with a negative EBIT margin in recent years, causing concern over operational efficiency. Gross profit margins have remained healthy but the net profit margin has been inconsistent due to volatility in net income.

Balance Sheet

The debt-to-equity ratio has improved over time, indicating better leverage management. Stockholders' equity has increased, strengthening the equity ratio. However, the overall return on equity has been inconsistent due to fluctuating net income, impacting investor returns.

Cash Flow

Operating cash flow has shown consistent growth, indicating strong cash generation. Free cash flow has also increased, showing improved liquidity. However, the operating cash flow to net income ratio has been volatile, reflecting instability in converting income into cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
426.56M	346.26M	261.71M	149.97M	122.02M
	Gross Profit
222.80M	176.03M	135.13M	75.44M	55.51M
	EBIT
-2.00M	-656.00K	5.12M	-84.00K	1.87M
	EBITDA
25.97M	17.66M	17.29M	6.41M	4.04M
	Net Income Common Stockholders
2.80M	-6.62M	5.00M	299.00K	990.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.70M	20.69M	13.28M	20.62M	386.00K
	Total Assets
505.88M	402.79M	255.76M	138.17M	63.64M
	Total Debt
113.44M	140.69M	81.03M	28.01M	18.90M
	Net Debt
106.74M	120.00M	67.75M	7.39M	18.51M
	Total Liabilities
259.77M	239.50M	132.90M	59.76M	46.50M
	Stockholders Equity
246.12M	163.28M	122.86M	78.41M	17.14M
Cash Flow		Free Cash Flow
23.68M	9.63M	8.27M	3.81M	9.43M
	Operating Cash Flow
24.30M	11.72M	9.17M	4.72M	10.77M
	Investing Cash Flow
-27.47M	-27.16M	-18.75M	-21.53M	-2.41M
	Financing Cash Flow
-10.82M	22.84M	2.25M	37.05M	-8.48M

Bowman Consulting Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.96
• 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 BWMN, the sentiment is Positive. The current price of 24.96 is above the 20-day moving average (MA) of 21.52, above the 50-day MA of 23.15, and below the 200-day MA of 25.71, indicating a neutral trend. The MACD of 0.53 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 95.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWMN.

Bowman Consulting Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBR	73 Outperform	$6.64B	17.96	26.45%	1.17%	11.30%	―
FLR	72 Outperform	$6.54B	3.19	72.85%	―	5.43%	2094.12%
TTEK	71 Outperform	$7.89B	30.66	16.05%	0.79%	11.02%	11.33%
J	62 Neutral	$14.86B	24.98	10.92%	0.96%	-13.76%	-13.39%
Sector *	62 Neutral	$8.36B	14.29	2.39%	3.06%	3.98%	-14.45%
BWMN	61 Neutral	$420.02M	175.65	1.34%	―	23.19%	―

Bowman Consulting Group Corporate Events

Bowman Consulting Appoints Daniel Swayze as COO

Bowman Consulting Group Ltd. has appointed Daniel Swayze as Executive Vice President and COO, effective July 1, 2024, under a contract extending to December 31, 2027. Swayze’s compensation includes a base salary of at least $475,000, an annual bonus of not less than $200,000 for 2024, and participation in incentive plans from 2025. The agreement outlines severance packages and conditions, including protection against involuntary termination and in the event of a company control change, ensuring his role is secure and financially rewarding.