IES Holdings, Inc. (IESC) Stock Analysis
IES Holdings, Inc. (IESC) Stock Analysis
Overall Grade: F (Concerning)
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IES Holdings, Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | -2.0% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is IES Holdings, Inc.'s Profitability and ROIC?
IES Holdings, Inc.'s return on invested capital of N/A is below the typical cost of capital. Gross margin of 25.5% with operating margin at 25.5% reflects the company's moderate market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below cost of capital |
| Gross Margin | 25.5% | Adequate | Competitive pricing environment |
| Operating Margin | 25.5% | Excellent | Efficient operations |
How Strong is IES Holdings, Inc.'s Cash Flow Quality?
IES Holdings, Inc. generated $-68.4M in free cash flow over the trailing twelve months, representing a -2.0% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -2.0% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-68.4M | Red flag | Cash burn |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is IES Holdings, Inc.'s Financial Health?
IES Holdings, Inc.'s debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is IES Holdings, Inc. Stock Overvalued or Undervalued?
IES Holdings, Inc. trades at a P/E of 25.1x, representing a premium to the sector median of N/A.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 25.1x | Adequate | Premium valuation |
| EV/Sales | 0.0x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | -2.0% | Bottom 10% | -2.4x below |
| Gross Margin | 25.5% | Bottom 50% | 1.0x below |
| Operating Margin | 25.5% | Top 25% | 3.0x above |
| P/E Ratio | 25.1x | N/A | - |
Rating Thresholds
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -2.0% (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 25.5% (Adequate - Bottom 50% of sector (median: 25.8%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 25.1x (Adequate)
Frequently Asked Questions
Q: What is IES Holdings, Inc.'s Return on Invested Capital (ROIC)?
IES Holdings, Inc. (IESC) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 6.8%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is IES Holdings, Inc.'s Free Cash Flow Margin?
IES Holdings, Inc. (IESC) has a free cash flow margin of -2.0%, generating $-68.4 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is IES Holdings, Inc. stock overvalued or undervalued?
IES Holdings, Inc. (IESC) trades at a P/E ratio of 25.1x, which is above the sector median of N/A. The EV/Sales multiple is 0.0x.
Q: Is IES Holdings, Inc. buying back stock?
IES Holdings, Inc. (IESC) repurchased $41.6 million of stock over the trailing twelve months. This represents a buyback yield of 0.5%.
Q: How does IES Holdings, Inc. compare to competitors in Materials?
Compared to other companies in Materials, IES Holdings, Inc. (IESC) shows: ROIC of N/A is below the sector median of 6.8% (NaNx median). FCF margin of -2.0% trails the sector median of 0.8%. Gross margin at 25.5% is 0.3 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with IES Holdings, Inc.?
Investors in IES Holdings, Inc. (IESC) should monitor these potential warning signs: 1) FCF margin is thin at -2.0%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-K filed 2025-11-21. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.