Bowman Consulting Group Ltd. (BWMN) Stock Analysis and Metrics

Sector: Industrials Industry: Engineering & Construction CIK: 0001847590

P/B 2.25

P/E 36.95

P/S 1.24

Market Cap 589.19 Mn

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,...

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, and Commercial and Retail, offering services to a diverse set of end markets.

The company generates revenue through its primary products and services, including construction management and design services for transportation departments and toll authorities, services to electric transmission systems, gas utilities, and renewables and decarbonization providers, design, construction, and maintenance of new and renewed building infrastructure, and services to national retailers, big box retailers, distribution center owners, office building owners and developers, convenience store operators, quick serve restaurant owners, and others.

Bowman Consulting Group Ltd. has a strong competitive position within the industry, thanks to its ability to deliver high-quality and timely services, its commitment to innovation and entrepreneurship, and its focus on customer relationships. The company has a dedicated founder, experienced leadership team, valuable technical workforce, and an entrepreneurial culture, which has enabled it to attract and retain exceptional talent. Bowman Consulting Group Ltd.'s key competitors include over 130,000 firms operating in the United States, but the company's strong presence in the markets it serves, coupled with its commitment to innovation and customer relationships, gives it a competitive advantage.

The company's customer base includes a diverse portfolio of public and private customers who own, construct, and maintain the built environment. More than 78% of the company's gross contract revenue for the year ended December 31, 2023, was derived from repeat customers, which is a testament to the company's commitment to customer satisfaction.

Bowman Consulting Group Ltd.'s brand names and/or trade names of its products and services include Richter & Associates, Fisher Engineering, Inc., Hole Montes, Inc., MTX Surveying, LLC, Advanced Applied Engineering, Inc., dba Infrastructure Engineers, Excellence Engineering, LLC, and Dennis Corporation, which the company acquired in 2023 to further expand its capabilities and services.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	65.02 Bn	63.86	2.39	6.02 Bn
2	FER	Ferrovial SE	48.37 Bn	14.34	5.08	-
3	FIX	Comfort Systems Usa Inc	34.25 Bn	40.89	4.12	0.39 Bn
4	EME	EMCOR Group, Inc.	28.27 Bn	25.01	1.74	0.42 Bn
5	MTZ	Mastec Inc	17.18 Bn	51.88	1.25	2.77 Bn
6	APG	APi Group Corp	16.45 Bn	105.48	2.15	3.05 Bn
7	J	Jacobs Solutions Inc.	16.43 Bn	56.79	1.37	2.71 Bn
8	ACM	Aecom	13.10 Bn	23.31	0.81	3.23 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.46	1.60
EV to Cash from Ops.	19.42	6.21
EV to Debt	4.35	12.02
EV to EBIT	73.27	16.63
EV to EBITDA	19.66	13.11
EV to Free Cash Flow [EV/FCF]	21.25	64.21
EV to Market Cap	1.27	1.27
EV to Revenue	1.57	1.63
Price to Book Value [P/B]	2.25	5.92
Price to Earnings [P/E]	36.95	28.08

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	18.98	2.56
Dividend Payout Ratio %	0.00	17.64
Dividend per Basic Share	0.00	0.24
FCF Dividend Payout Ratio %	0.00	8.25
Interest Coverage	0.00	80.17

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-844.73	-167.27
Cash and Equivalents Growth (1y) %	39.12	637.93
Dividend Growth (1y) %	0.00	2.92
EBIAT Growth (1y) %	258.67	92.73
EBITDA Growth (1y) %	232.52	8.03
EBIT Growth (1y) %	167.62	85.41
EBT Growth (1y) %	167.62	42.19
EPS Growth (1y) %	220.99	43.98
FCF Growth (1y) %	205.47	-20.57
Gross Profit Growth (1y) %	19.80	32.55

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.93	1.14
Cash Payout Ratio	0.00	0.05
Cash Ratio	0.10	0.38
Current Ratio	1.30	1.54
Debt to Equity Ratio	0.65	0.89
Interest Cover Ratio	0.00	80.17
Times Interest Earned	0.00	80.17

Profitability

Metric	Value	Industry
EBITDA Margin %	8.00	0.40
EBIT Margin %	2.14	-2.30
EBT Margin %	2.14	-4.58
Gross Margin %	52.90	20.40
Net Profit Margin %	3.40	-5.95

Bowman Consulting Group Ltd. (NASDAQ: BWMN)