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Willdan Group (WLDN)
NASDAQ:WLDN
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Willdan Group
(NASDAQ:WLDN)
71Outperform
Willdan Group (WLDN) vs. S&P 500 (SPY)
Market Cap
$612.76M
Dividend YieldN/A
Average Volume (3M)166.80K
Price to Earnings (P/E)26.9
Beta (1Y)0.50
Revenue Growth10.92%
EPS Growth100.59%
CountryUS
Employees1,761
SectorIndustrials
Sector Strength70
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.58
Shares Outstanding14,407,642
10 Day Avg. Volume202,250
30 Day Avg. Volume166,799
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)N/A
Price to Sales (P/S)1.07
Price to Cash Flow (P/CF)4.50
P/FCF Ratio4.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$57.50Price Target Upside35.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Willdan Group Business Overview & Revenue Model
Company DescriptionWilldan Group, Inc. (NASDAQ: WLDN) is a leading nationwide provider of professional technical and consulting services focused primarily on energy and infrastructure solutions. Headquartered in Anaheim, California, Willdan operates across various sectors, including energy efficiency, engineering, and consulting services. The company specializes in delivering comprehensive solutions for utilities, public agencies, and private enterprises, aiming to enhance energy efficiency, sustainability, and infrastructure development.
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 Financial Statement Overview
Summary
Willdan Group exhibits strong financial health with impressive revenue growth and profitability improvements. The balance sheet is stable with moderate leverage, and cash flows are robust, supporting ongoing operations and growth initiatives. Continued focus on operational efficiency and debt management will enhance financial performance further.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
42.53
Price Trends
36.49
Positive
39.23
Positive
37.81
Positive
Market Momentum
2.10
Negative
68.21
Neutral
81.85
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 42.53 is above the 20-day moving average (MA) of 37.65, above the 50-day MA of 36.49, and above the 200-day MA of 37.81, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 81.85 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.43B | 37.16 | 12.88% | 0.75% | 15.75% | 7.64% | |
73 Outperform | $6.64B | 17.96 | 26.45% | 1.20% | 11.30% | ― | |
72 Outperform | $6.54B | 3.19 | 72.85% | ― | 5.43% | 2094.12% | |
71 Outperform | $612.76M | 26.93 | 10.40% | ― | 10.92% | 100.59% | |
71 Outperform | $7.78B | 30.31 | 16.05% | 0.80% | 11.02% | 11.33% | |
62 Neutral | $14.86B | 24.98 | 10.92% | 0.98% | -13.76% | -13.39% | |
62 Neutral | $8.27B | 14.03 | 2.36% | 3.08% | 3.85% | -14.32% |
* Industrials Sector Average
Performance Comparison
WLDN
Willdan Group
42.53
13.25
45.25%
FLR
Fluor
38.92
-2.09
-5.10%
J
Jacobs Engineering
123.19
-1.29
-1.04%
KBR
KBR
51.34
-9.44
-15.53%
TTEK
Tetra Tech
29.37
-6.91
-19.05%
TSE:STN
Stantec
119.77
5.96
5.24%
Willdan Group Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 32.00% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Willdan Group, Inc. experienced a record-breaking year in 2024 with significant revenue growth, successful acquisitions, and strategic contract wins. The company maintains a strong cash flow and financial position, with a positive market outlook for 2025. However, the timing of revenue recognition from a major contract and the impact of prior exceptional opportunities created some challenges in comparing quarterly results. Overall, the highlights significantly outweigh the lowlights, indicating a strong positive sentiment.Highlights
Record-Breaking Financial Performance
In 2024, contract revenue increased by 11% to a record $566 million, and adjusted EBITDA rose by 24% year over year. Adjusted EPS was up 39%, and free cash flow per share was $4.49.
Successful Strategic Acquisitions
Willdan Group, Inc. completed three acquisitions in 2024, including Enica and APG, which have expanded technical capabilities in the commercial technology sector, particularly in data center electricity.
Major Contract Wins
Willdan Group, Inc. won all major recompetes in 2024, including a $330 million, five-year contract with the Los Angeles Department of Water and Power, expected to drive significant future revenue.
Strong Cash Flow and Liquidity
The company generated $72 million in cash flow from operations and $64 million in free cash flow in 2024, resulting in a strong financial position with $124 million in total liquidity.
Positive Market Outlook
There is a robust pipeline of opportunities for 2025, with expected net revenue between $320 million to $330 million and adjusted EBITDA between $63 million to $67 million, both above current street estimates.
Lowlights
Impact of Previous Exceptional Opportunities
The fourth quarter of 2024 appeared flat or slightly lower compared to 2023 due to exceptional opportunities in the previous year, which contributed $20 million in contract revenue.
Delay in Revenue Recognition from LADWP Contract
The new contract with LADWP will not contribute significant revenue until the latter half of 2025 due to the timing of its ratification and startup.
Company Guidance
During the Willdan Group, Inc. fourth quarter and full-year 2024 earnings call, the company provided robust guidance for fiscal year 2025, reflecting strong financial performance and strategic growth initiatives. Willdan reported a significant 11% increase in contract revenue and a 24% rise in adjusted EBITDA year-over-year. Additionally, GAAP EPS nearly doubled, and adjusted EPS rose by 39%. The company anticipates a positive long-term outlook, driven by its recent acquisitions and expanding technical capabilities in the commercial data center market. For 2025, Willdan expects net revenue between $320 million and $330 million, adjusted EBITDA of $63 million to $67 million, and adjusted EPS ranging from $2.70 to $2.85 per share. This guidance exceeds current consensus estimates and highlights Willdan's strategic emphasis on diversifying its customer base, with commercial customers now comprising 15% of revenue, state and local governments 44%, and utilities 41%. The company also noted a record level of free cash flow at $4.49 per share in 2024, underlining its strong financial position and readiness for further growth.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.