Everus Construction Group, Inc. (NYSE: ECG)

Sector: Industrials Industry: Engineering & Construction CIK: 0002015845
P/B 7.94
P/E 25.13
P/S 1.30
Market Cap 4.55 Bn
ROIC (Qtr) 19.52
Div Yield % 0.00
Rev 1y % (Qtr) 29.68
Total Debt (Qtr) 369.58 Mn
Debt/Equity (Qtr) 0.64

About

Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 189.34M provides robust 0.51x coverage of total debt 369.58M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 149.17M provide 3.25x coverage of short-term debt 45.93M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 189.34M provides strong 35.64x coverage of stock compensation 5.31M, indicating sustainable incentive practices.
  • Strong tangible asset base of 1.48B provides 4.01x coverage of total debt 369.58M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 145.83M exceeds capital expenditure of 43.50M by 3.35x, indicating strong organic growth funding capability.

Cons

  • Operating cash flow of 189.34M barely covers its investment activities of (45.22M), with a coverage ratio of -4.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 189.34M provides insufficient coverage of deferred revenue obligations of 269.83M, which is 0.70x, raising concerns about future service delivery capabilities.
  • High receivables of 743.74M relative to inventory of 47.96M (15.51 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • R&D investment of 0 represents just 0x of SG&A expenses of 180.96M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Tax assets of 0 provide limited offset against tax liabilities of 24.20M, which is 0x, indicating potential future cash flow pressure from tax obligations.

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. 65.07 Bn 63.92 2.39 6.02 Bn
2 FER Ferrovial SE 48.89 Bn 14.49 5.13 -
3 FIX Comfort Systems Usa Inc 34.27 Bn 40.92 4.12 0.39 Bn
4 EME EMCOR Group, Inc. 28.31 Bn 25.04 1.74 0.42 Bn
5 MTZ Mastec Inc 16.96 Bn 51.22 1.23 2.77 Bn
6 APG APi Group Corp 16.26 Bn 104.23 2.12 3.05 Bn
7 J Jacobs Solutions Inc. 16.22 Bn 56.05 1.35 2.71 Bn
8 ACM Aecom 13.03 Bn 23.20 0.81 3.23 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 2.97 1.59
EV to Cash from Ops. 25.49 7.03
EV to Debt 13.06 11.96
EV to EBIT 18.10 17.03
EV to EBITDA 17.88 13.31
EV to Free Cash Flow [EV/FCF] 33.09 57.73
EV to Market Cap 1.06 1.27
EV to Revenue 1.38 1.63
Price to Book Value [P/B] 7.94 5.93
Price to Earnings [P/E] 25.13 35.53

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 2.51
Dividend Payout Ratio % 0.00 25.81
Dividend per Basic Share 0.00 0.24
FCF Dividend Payout Ratio % 0.00 4.05
Interest Coverage 13.23 80.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -53.14 -166.01
Cash and Equivalents Growth (1y) % 26,874.14 637.72
Dividend Growth (1y) % 0.00 5.87
EBIAT Growth (1y) % 26.63 92.47
EBITDA Growth (1y) % 23.13 8.04
EBIT Growth (1y) % 28.30 85.34
EBT Growth (1y) % 26.06 42.07
EPS Growth (1y) % 25.00 43.76
FCF Growth (1y) % -11.21 -20.95
Gross Profit Growth (1y) % 26.99 32.46

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 2.15 1.14
Cash Payout Ratio 0.00 0.05
Cash Ratio 0.22 0.38
Current Ratio 1.76 1.55
Debt to Equity Ratio 0.64 0.89
Interest Cover Ratio 13.23 80.15
Times Interest Earned 13.23 80.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 8.40 0.40
EBIT Margin % 7.63 -2.31
EBT Margin % 7.05 -4.59
Gross Margin % 12.10 20.38
Net Profit Margin % 5.20 -5.96