Breaking Down NV5 Global, Inc. (NVEE) Financial Health: Key Insights for Investors

Breaking Down NV5 Global, Inc. (NVEE) Financial Health: Key Insights for Investors

US | Industrials | Engineering & Construction | NASDAQ

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Understanding NV5 Global, Inc. (NVEE) Revenue Streams

Revenue Analysis

NV5 Global, Inc. reported $912.3 million in total revenue for the fiscal year 2023, representing a 14.3% year-over-year growth from 2022.

Revenue Segment 2023 Revenue Percentage of Total Revenue
Infrastructure $456.7 million 50.1%
Environmental $278.5 million 30.5%
Building + Design $177.1 million 19.4%

Revenue growth was driven by several key factors:

  • Organic growth in infrastructure consulting services
  • Expansion of environmental compliance and remediation projects
  • Strategic acquisitions in building and design sectors

Geographic revenue breakdown shows $687.9 million from domestic markets and $224.4 million from international operations.

Geographic Region 2023 Revenue Growth Rate
United States $687.9 million 12.6%
International Markets $224.4 million 18.2%



A Deep Dive into NV5 Global, Inc. (NVEE) Profitability

Profitability Metrics Analysis

Financial performance examination reveals critical profitability insights for the company.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 28.6% 26.3%
Operating Profit Margin 12.4% 11.2%
Net Profit Margin 8.7% 7.5%

Key profitability characteristics include:

  • Gross profit increased from $215.6 million to $248.3 million
  • Operating income rose to $107.5 million
  • Net income reached $75.2 million

Operational efficiency metrics demonstrate consistent improvement across financial dimensions.

Efficiency Metric 2023 Performance
Return on Equity 16.3%
Return on Assets 9.8%



Debt vs. Equity: How NV5 Global, Inc. (NVEE) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.

Debt Metric Amount (USD)
Total Long-Term Debt $214.3 million
Total Short-Term Debt $42.7 million
Total Debt $257 million
Debt-to-Equity Ratio 0.85

The company's financing strategy incorporates multiple debt mechanisms:

  • Credit Facility Size: $300 million
  • Current Utilization Rate: 85.7%
  • Interest Rate on Long-Term Debt: 4.75%

Equity financing details demonstrate a balanced approach:

Equity Component Value
Total Shareholders' Equity $302.5 million
Common Stock Outstanding 14.2 million shares
Market Capitalization $1.24 billion

Credit rating metrics indicate stable financial positioning:

  • S&P Credit Rating: BBB-
  • Moody's Rating: Baa3



Assessing NV5 Global, Inc. (NVEE) Liquidity

Liquidity and Solvency Analysis

Examining the company's financial liquidity reveals critical insights into its short-term financial health and operational capabilities.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.85 1.72
Quick Ratio 1.45 1.38

Working Capital Assessment

Working capital analysis demonstrates the following key characteristics:

  • Working Capital: $42.6 million
  • Year-over-Year Working Capital Growth: 8.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $87.3 million
Investing Cash Flow -$45.2 million
Financing Cash Flow -$22.1 million

Liquidity Strengths

  • Cash and Cash Equivalents: $64.5 million
  • Short-Term Investments: $18.3 million
  • Debt-to-Equity Ratio: 0.45

Potential Liquidity Considerations

  • Short-Term Debt Obligations: $22.7 million
  • Accounts Receivable Turnover: 4.6x
  • Cash Conversion Cycle: 52 days



Is NV5 Global, Inc. (NVEE) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Insights

Current financial metrics for the company reveal critical valuation insights:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 22.7
Price-to-Book (P/B) Ratio 3.45
Enterprise Value/EBITDA 15.6
Dividend Yield 0.72%

Stock price performance metrics:

  • 52-week price range: $84.23 - $127.55
  • Current stock price: $109.67
  • Price volatility: 32.5%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 58%
Hold 35%
Sell 7%

Additional valuation indicators:

  • Forward P/E ratio: 19.3
  • Price/Sales ratio: 2.1
  • Payout ratio: 12.4%



Key Risks Facing NV5 Global, Inc. (NVEE)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning.

External Market Risks

Risk Category Potential Impact Severity Level
Economic Volatility Potential revenue reduction High
Infrastructure Investment Fluctuations Project pipeline uncertainty Medium
Regulatory Compliance Potential financial penalties High

Operational Risks

  • Supply chain disruptions
  • Technology implementation challenges
  • Talent acquisition and retention
  • Cybersecurity vulnerabilities

Financial Risk Analysis

Key financial risks include:

  • Revenue concentration risk: 62% of revenues from top 5 clients
  • Debt-to-equity ratio: 0.45
  • Working capital liquidity: $48.3 million

Competitive Landscape Risks

Competitive Factor Company Position Market Challenge
Market Share 7.2% Moderate competition
R&D Investment $12.4 million Innovation pressure

Mitigation Strategies

  • Diversification of client base
  • Enhanced cybersecurity protocols
  • Continuous technology investment
  • Strategic cost management



Future Growth Prospects for NV5 Global, Inc. (NVEE)

Growth Opportunities

NV5 Global, Inc. demonstrated robust growth potential with $1.02 billion in total revenue for the fiscal year 2022, representing a 26.2% year-over-year increase.

Key Growth Drivers

  • Infrastructure engineering services market expected to reach $703.4 billion by 2027
  • Strategic acquisitions expanding service capabilities
  • Expanding presence in renewable energy infrastructure projects

Revenue Growth Projections

Year Projected Revenue Growth Rate
2023 $1.15 billion 12.7%
2024 $1.30 billion 13.0%
2025 $1.47 billion 13.1%

Strategic Initiatives

  • Focused expansion in environmental and infrastructure consulting
  • Investment in digital transformation technologies
  • Geographic market diversification

Competitive Advantages

Market positioning with $1.02 billion annual revenue and presence in 100+ locations across multiple sectors.

Sector Market Share Growth Potential
Infrastructure 8.5% High
Environmental 6.2% Medium
Energy 7.3% Very High

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