Bowman Consulting Group Ltd. (NASDAQ: BWMN)

Sector: Industrials Industry: Engineering & Construction CIK: 0001847590
Market Cap 566.57 Mn
P/B 2.16
P/E 35.53
P/S 1.19
ROIC (Qtr) 4.77
Div Yield % 0.00
Rev 1y % (Qtr) 10.62
Total Debt (Qtr) 171.22 Mn
Debt/Equity (Qtr) 0.65

About

Bowman Consulting Group Ltd., also known as BWMN, operates in the professional services industry, delivering innovative engineering solutions to customers who own, develop, and maintain the built environment. The company's main business activities include planning, engineering, construction management, commissioning, environmental consulting, geospatial, survey, land procurement, and other technical services. Bowman Consulting Group Ltd. operates in various segments such as Transportation, Power, Utilities & Energy Services, Building Infrastructure,...

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Price action

Investment thesis

Bull case

  • Tangible assets of 312.16M provide exceptional 21.02x coverage of deferred revenue 14.85M, showing strong service capability backing.
  • Robust free cash flow of 35.07M exceeds capital expenditure of 3.32M by 10.58x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 312.16M provides 6.26x coverage of working capital 49.86M, indicating strong operational backing.
  • Tangible assets of 312.16M provide robust 21.02x coverage of other current liabilities 14.85M, indicating strong asset backing.
  • Free cash flow of 35.07M provides solid 1.04x coverage of operating expenses 33.66M, showing operational efficiency.

Bear case

  • Operating cash flow of 38.39M barely covers its investment activities of (5.26M), with a coverage ratio of -7.30, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 16.22M provide limited coverage of acquisition spending of (3.09M), which is -5.24x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 38.39M shows concerning coverage of stock compensation expenses of 19.64M, with a 1.95 ratio indicating potential earnings quality issues.
  • Operating cash flow of 38.39M provides minimal -5.81x coverage of tax expenses of (6.61M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 10.17M show weak coverage of depreciation charges of 27.82M, with a 0.37 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Engineering & Construction
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PWR Quanta Services, Inc. 62.71 Bn 61.60 2.31 6.02 Bn
2 FER Ferrovial SE 48.08 Bn 14.25 5.05 -
3 FIX Comfort Systems Usa Inc 35.76 Bn 42.69 4.30 0.39 Bn
4 EME EMCOR Group, Inc. 29.29 Bn 25.91 1.80 0.42 Bn
5 APG APi Group Corp 17.37 Bn 111.36 2.27 3.05 Bn
6 MTZ Mastec Inc 17.01 Bn 51.39 1.24 2.77 Bn
7 J Jacobs Solutions Inc. 16.94 Bn 58.56 1.41 2.71 Bn
8 BLD TopBuild Corp 13.35 Bn 23.52 2.55 3.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.42 1.61
EV to Cash from Ops. EV/CFO 18.83 6.94
EV to Debt EV to Debt 4.22 11.81
EV to EBIT EV/EBIT 71.05 17.80
EV to EBITDA EV/EBITDA 19.06 13.77
EV to Free Cash Flow [EV/FCF] EV/FCF 20.61 55.77
EV to Market Cap EV to Market Cap 1.28 1.20
EV to Revenue EV/Rev 1.52 1.65
Price to Book Value [P/B] P/B 2.16 5.81
Price to Earnings [P/E] P/E 35.53 35.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 18.98 2.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 25.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.24
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.05
Interest Coverage Interest Coverage 0.00 80.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -844.73 -166.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 39.12 637.72
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.87
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 258.67 92.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 232.52 8.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 167.62 85.34
EBT Growth (1y) % EBT 1y % (Qtr) 167.62 42.07
EPS Growth (1y) % EPS 1y % (Qtr) 220.99 43.76
FCF Growth (1y) % FCF 1y % (Qtr) 205.47 -20.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 19.80 32.46
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.93 1.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.10 0.38
Current Ratio Curr Ratio (Qtr) 1.30 1.55
Debt to Equity Ratio Debt/Equity (Qtr) 0.65 0.89
Interest Cover Ratio Interest Cover Ratio 0.00 80.15
Times Interest Earned Times Interest Earned 0.00 80.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.00 0.40
EBIT Margin % EBIT Margin % (Qtr) 2.14 -2.31
EBT Margin % EBT Margin % (Qtr) 2.14 -4.59
Gross Margin % Gross Margin % (Qtr) 52.90 20.38
Net Profit Margin % Net Margin % (Qtr) 3.40 -5.96