Opinions
David Driscoll
NV5 Global
NVEE-Q
PAST TOP PICK
Feb 07, 2020
Stock price when the opinion was issued
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NVEE has grown its sales and earnings on a five-year CAGR basis by 21.1% and 29.5%, respectively.
Its share price has grown by 23.2% on a five-year CAGR basis.
It has a 20.7X P/E, 12.8X EV/EBITDA, and a 2.8X P/B, which are all around its five-year historical averages of 19.6X, 12.4X, and 2.9X, respectively.
We would consider NVEE to be at a reasonable price today.
Although, it might continue to pullback further.
We like its management team, its disciplined approach to acquisitions, and its growth potential and execution.
We would be OK with buying here today for a long-term position.
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The quarter was a big miss; EPS $1.21 down from $1.61 the prior year and estimates of $1.54.
Revenue $189.8M was higher than the prior year $188.6M but missed estimates of $203.4M.
For 2023, guidance was $5.28 to $5.64 per share (est $5.44), Revenue guidance $878M to $915M (est $881M).
The guidance range vs the stock drop seems out of line here to us.
Management commentary was not that negative going forward.
The 4Q miss scared investors, but with the stock already down we would not panic here.
We think it will be OK, but would not add.
The stock may flatline a bit.
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