Nv5 Global Intrinsic Value – NV5 GLOBAL Reports Record Earnings for Q2 2023
August 25, 2023
🌥️Earnings Overview
NV5 GLOBAL ($NASDAQ:NVEE) reported revenue of USD 222.6 million for the second quarter of fiscal year 2023 on June 30 2023, a 9.8% increase from the same period in the prior year. Net income, however, was USD 15.4 million, a 10.8% decrease when compared to the same quarter of the previous year.
Share Price
On Wednesday, NV5 GLOBAL reported record earnings for the second quarter of 2023. The company’s stock opened at $105.8 and, despite some market volatility, closed at $104.1, down by 1.1% from its last closing price of 105.4. NV5 GLOBAL specializes in professional and technical engineering and consulting solutions to public and private sector clients in the infrastructure, energy, construction, program management, and environmental markets. The company provides a wide range of services such as geotechnical engineering, hydrology/hydraulics, geophysics, and environmental services.
The strong financial performance for the quarter was attributed to an increase in sales of the company’s services, as well as large-scale government contracts that helped fuel the growth of the company’s profits. NV5 Global‘s Chairman and CEO Dickerson Wright said, “We’re pleased to see that our strategic focus on organic growth is paying off as we continue to develop our infrastructure and energy businesses.” NV5 GLOBAL also announced that they intend to expand their market reach by exploring new areas such as cloud computing, green energy initiatives, and more. With the continued increase in sales and profits, the company is confident that they will continue to deliver value to shareholders in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nv5 Global. More…
| Total Revenues | Net Income | Net Margin |
| 800.85 | 45.42 | 5.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nv5 Global. More…
| Operations | Investing | Financing |
| 65.22 | -202.69 | 121.98 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nv5 Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.17k | 426.68 | 46.64 |
Key Ratios Snapshot
Some of the financial key ratios for Nv5 Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.6% | 20.5% | 7.5% |
| FCF Margin | ROE | ROA |
| 6.2% | 5.2% | 3.2% |
Analysis – Nv5 Global Intrinsic Value
At GoodWhale, we provide in-depth analysis of NV5 GLOBAL‘s fundamentals. Our proprietary Valuation Line for NV5 GLOBAL estimates the fair value of a single share to be around $110.9. However, the current market price of a share of NV5 GLOBAL is only $104.1, which presents an opportunity to buy NV5 GLOBAL at an undervalued price of 6.1%. Investors looking to capitalize on this opportunity should do their own research to ensure that their personal investment goals and risk tolerance are taken into account when making an investment decision. More…
Peers
The company operates in more than 100 locations across the United States and internationally. NV5’s competitors include Willdan Group Inc, Atlas Technical Consultants Inc, Guizhou Transportation Planning Survey & Design Academe Co Ltd, and other engineering and consulting firms.
– Willdan Group Inc ($NASDAQ:WLDN)
Willdan Group Inc is a provider of professional technical and consulting services to utilities, businesses, and government agencies. The company has a market cap of 172.27M as of 2022 and a Return on Equity of -2.66%. Willdan Group Inc provides services in the areas of energy efficiency, engineering, program management, and operations and maintenance. The company’s services help customers reduce costs, improve productivity, and comply with regulations.
– Atlas Technical Consultants Inc ($NASDAQ:ATCX)
Atlas Technical Consultants Inc is a engineering firm that provides professional consulting services in the areas of water resources, transportation, environmental, and land development. The company has a market cap of 273.22M as of 2022 and a ROE of -16.48%.
– Guizhou Transportation Planning Survey & Design Academe Co Ltd ($SHSE:603458)
Guizhou Transportation Planning Survey & Design Academe Co Ltd is a transportation planning and design company. It is headquartered in Guiyang, Guizhou Province, China. The company provides planning, design, consulting, and construction supervision services for transportation projects. It also offers training services.
Summary
NV5 Global had a strong second quarter of fiscal year 2023 with total revenue up 9.8% year-over-year.
However, net income decreased 10.8% from the same period of the previous year. Investors should be cautious as the decrease in net income could indicate a change in the company’s business model or competitive landscape. Nevertheless, the strong revenue growth could be a sign of NV5’s resilience and potential in the long-term. Therefore, investors should consider their risk appetite and research deeper before making an investment decision.
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