Core Viewpoint - NV5 Global (NVEE) shows potential for significant upside, with a mean price target of $25.25 indicating a 43.1% increase from its current price of $17.64 [1] Price Target Analysis - The average price targets from analysts range from a low of $22 to a high of $28, with a standard deviation of $2.75, suggesting a consensus among analysts [2] - The lowest estimate indicates a 24.7% increase, while the highest suggests a 58.7% upside [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement [7] Earnings Estimates - Analysts have shown increasing optimism about NVEE's earnings prospects, with a strong agreement in revising EPS estimates higher [9] - Over the last 30 days, two estimates have increased, leading to a 5.4% rise in the Zacks Consensus Estimate [10] - NVEE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as analysts' ability to set unbiased targets has been questioned [3][5] - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [6] - While price targets should not be ignored, they should be approached with skepticism [8]

Core Insights - NV5 Global (NVEE) is currently rated 2 (Buy) by Zacks Rank, while Symbotic Inc. (SYM) holds a 3 (Hold) rating, indicating a stronger earnings outlook for NVEE compared to SYM [3] - NVEE has a Value grade of A, whereas SYM has a Value grade of D, suggesting that NVEE is perceived as a better value opportunity [6][7] Valuation Metrics - NVEE has a forward P/E ratio of 13.36, significantly lower than SYM's forward P/E of 87.14, indicating that NVEE may be undervalued relative to SYM [5] - The PEG ratio for NVEE is 2.53, while SYM's PEG ratio is 2.90, suggesting that NVEE offers a more favorable valuation when considering expected earnings growth [5] - NVEE's P/B ratio stands at 1.36, in stark contrast to SYM's P/B ratio of 31.84, further highlighting NVEE's relative undervaluation [6]

Core Insights - NV5 has completed the acquisition of Herman Cx, enhancing its capabilities in commissioning and conformity assessment services for hyperscale data centers [1][2] - The acquisition is expected to be immediately accretive to NV5's earnings and is part of the company's strategy to grow its domestic data center business [1][2] Company Overview - NV5 Global, Inc. provides technology, certification, and consulting solutions across various sectors, focusing on utility services, infrastructure engineering, construction quality assurance, buildings & technology, environmental health sciences, and geospatial services [5] - The company operates from over 100 offices nationwide and internationally [5] Acquisition Details - Herman Cx specializes in QA/QC support and commissioning services for mission-critical data centers, with over 90 years of combined employee experience in the sector [4] - The acquisition was executed through a combination of cash and stock [1] - Herman Cx has commissioned data center infrastructure up to 175 megawatts and offers comprehensive mission-critical testing and commissioning services [2][4] Strategic Growth - Data centers are a significant growth driver for NV5, contributing over 20% organic growth [3] - The acquisition is expected to create cross-selling opportunities for NV5's existing services, including MEP-technology design, fire protection, and power delivery [2][3]

Core Insights - NV5 Global, Inc. has been awarded $18 million in data center design and commissioning contracts in the U.S. and Asia, enhancing its leadership in the expanding data center sector [1][2] - The company will provide high-efficiency cooling and power distribution solutions, addressing the increasing demands from AI workloads and cloud computing [2][3] - NV5 has surpassed one gigawatt (GW) in global data center systems design and commissioning, showcasing its expertise in energy-efficiency solutions and innovative cooling technologies [3] Company Overview - NV5 Global, Inc. offers technology, certification, and consulting solutions for both public and private sector clients, focusing on utility, infrastructure, and building assets [4] - The company operates in six business verticals: Utility services, infrastructure support, conformity assessment, buildings & technology, environmental health sciences, and geospatial services [4] - NV5 has a presence in over 100 offices both domestically and internationally [4]

Core Insights - NV5 Global, Inc. has been awarded a five-year contract worth $5 million by the Florida Department of Transportation (FDOT) to provide geotechnical engineering and construction materials testing for Florida's Turnpike Enterprise [1][2][3] - The contract aims to support infrastructure development, asset management, and maintenance across a critical 260-mile transportation network that serves over three million travelers daily [1][2] - NV5's laboratories in Miami, Orlando, and Gainesville will conduct essential services such as soil exploration, construction materials sampling, and pavement evaluation to ensure the safety and performance of the Turnpike system [2][3] Company Overview - NV5 Global, Inc. specializes in technology, certification, and consulting solutions for both public and private sector clients, focusing on utility, infrastructure, and building assets [4] - The company operates in six business verticals: Utility services, infrastructure support, conformity assessment, buildings & technology, environmental health sciences, and geospatial services [4] - NV5 has over 100 offices nationwide and abroad, indicating a strong operational presence [4]

Core Insights - NV5 Global, Inc. has secured over 250 megawatts (MW) of data center projects in Thailand, enhancing its role in large-scale data center infrastructure expansion [1] - The company has been awarded a $6 million project for commissioning a hyperscale data center for a U.S. technology company, which includes testing advanced cooling and ventilation systems [1] - Thailand's digital economy is projected to exceed $50 billion in 2025, driven by a skilled workforce and significant government investment in digital infrastructure, making it an attractive market for hyperscalers [2] Company Overview - NV5 Global, Inc. provides technology, certification, and consulting solutions across six business verticals: utility services, infrastructure support, conformity assessment, buildings & technology, environmental, and geospatial services [4] - The company operates from over 100 offices both domestically and internationally, positioning itself as a trusted advisor in the global data center growth [2][4] Market Position - NV5's expertise in recurring commissioning and data center design is crucial for clients looking to establish and scale operations in Thailand [3] - The company has received multiple project awards, including technical due diligence and design for large-scale data centers, indicating strong growth opportunities in the region [3]

Core Viewpoint - NV5 Global (NVEE) shows potential for significant upside, with a mean price target of $25.25 indicating a 36.7% increase from the current price of $18.47 [1] Price Targets - The average price target consists of four estimates ranging from a low of $22 to a high of $28, with a standard deviation of $2.75, suggesting a variability in analyst estimates [2] - The lowest estimate indicates a 19.1% increase, while the highest suggests a 51.6% upside [2] Analyst Sentiment - Analysts are increasingly optimistic about NVEE's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price movements [9] - Over the last 30 days, two estimates have been revised upward, leading to a 5.2% increase in the Zacks Consensus Estimate [10] Zacks Rank - NVEE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [11] Price Target Reliability - While consensus price targets are often sought after, they may not reliably indicate actual stock price movements, and should be approached with skepticism [5][8]

Core Insights - NV5 Global (NVEE) is currently viewed as a stronger investment option compared to Amplitude, Inc. (AMPL) for value investors seeking undervalued stocks [1][3][7] Valuation Metrics - NVEE has a forward P/E ratio of 13.91, significantly lower than AMPL's forward P/E of 166.96, indicating NVEE may be undervalued [5] - The PEG ratio for NVEE is 2.64, while AMPL's PEG ratio stands at 4.32, suggesting NVEE has a more favorable growth outlook relative to its valuation [5] - NVEE's P/B ratio is 1.42, compared to AMPL's P/B of 4.08, further supporting the notion that NVEE is undervalued [6] Earnings Outlook - NVEE is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Revenue Sources - For fiscal years 2024, 2023, and 2022, approximately 63%, 68%, and 64% of NV5 Global's gross revenues were derived from public and quasi-public sector clients[34]. - Public and quasi-public sector clients represented approximately 63%, 68%, and 64% of gross revenues in 2024, 2023, and 2022, respectively[72]. - The company anticipates continued revenue growth from public and quasi-public sector clients, which historically show resilience during economic downturns[200]. Client Base and Market Engagement - The company serves approximately 11,300 clients, with the ten largest clients accounting for about 25% of gross revenues for the year ended December 28, 2024[72]. - The ten largest clients accounted for approximately 25% of gross revenues during the fiscal year ended December 28, 2024, indicating a concentration risk[118]. - Approximately 28% of gross revenues in fiscal years 2024, 2023, and 2022 came from California-based projects, indicating a significant reliance on this region[110]. Organizational Structure and Employee Expertise - NV5 Global operates over 100 locations in the U.S. and abroad, enhancing local market expertise and client engagement[28]. - NV5 Global's organizational structure promotes client service through a flat model, ensuring access to qualified professionals across service verticals[27]. - NV5 Global's experienced employees average over 20 years in the engineering and consulting industry, emphasizing the importance of human capital[31]. - The company had 5,024 employees as of December 28, 2024, including 4,714 full-time employees[81]. Service Segments - The Infrastructure segment includes engineering, civil program management, utility services, and conformity assessment practices[37]. - The Building, Technology & Sciences segment encompasses clean energy consulting, data center commissioning, and environmental health sciences[37]. - The Geospatial Solutions segment focuses on geospatial practices, enhancing the company's service capabilities[38]. Growth Strategy and Acquisitions - The company aims to pursue strategic acquisitions to expand service offerings and geographic footprint, focusing on tech-enabled solutions with high profitability[36]. - The company maintains a full-time M&A initiative focused on identifying acquisition targets and enhancing existing service offerings[70]. - The company’s growth strategy includes acquisitions, which could disrupt operations and impact business results if not successfully integrated[151]. - The company faces challenges in identifying suitable acquisition candidates and may not be able to acquire additional companies on acceptable terms[154]. - Future acquisitions may not perform as expected, potentially failing to realize anticipated revenue and profits[156]. Financial Performance - Gross revenues for fiscal year 2024 reached $941,265,000, a 9.8% increase from $857,155,000 in 2023[194]. - Net income for fiscal year 2024 was $27,979,000, down 36% from $43,724,000 in 2023[194]. - Total assets increased to $1,315,356,000 in 2024, up from $1,184,195,000 in 2023, representing an 11.1% growth[196]. - Total equity rose to $833,014,000 in 2024, compared to $774,906,000 in 2023, marking a 7.4% increase[196]. - Operating expenses for 2024 totaled $439,799,000, a 20% increase from $366,273,000 in 2023[194]. - Basic earnings per share decreased to $0.45 in 2024 from $0.72 in 2023, reflecting a 37.5% decline[194]. Risk Factors - The company relies on a limited number of clients for a significant portion of its business, which poses a risk if contracts are not renewed[100]. - Economic downturns and budget constraints faced by state and local governments may lead to project delays or cancellations, adversely affecting financial results[106]. - A delay in the U.S. government's budget process could negatively impact future revenue due to potential procurement delays[107]. - The competitive landscape is highly fragmented, with numerous competitors, which may force the company to make price concessions and affect profitability[119]. - The company faces risks related to cybersecurity breaches, which could adversely impact operations and financial condition[143]. Compliance and Regulatory Issues - The company is subject to various regulatory compliance requirements, including procurement laws and environmental regulations[93]. - Compliance with various procurement laws and regulations is critical, as violations could lead to sanctions and loss of government contractor status[158]. - Regulatory compliance related to data privacy and security is essential, with potential fines and penalties for non-compliance[167]. - The company may face liabilities under environmental laws, which could result in substantial costs and impact financial performance[162]. Sustainability and Corporate Governance - The company is committed to sustainability, focusing on greenhouse gas emissions reduction and expanding its subscription-based energy efficiency services[80]. - Executive Chairman Mr. Dickerson Wright owns approximately 10.7% of the common stock, giving him significant influence over corporate decisions[173]. - The company does not currently pay dividends and does not intend to do so in the foreseeable future[104]. - The company has anti-takeover provisions that may deter acquisition attempts and affect stockholder participation in such proposals[174].

NV5 Global, Inc. (NASDAQ:NVEE) Q4 2024 Earnings Conference Call February 20, 2025 4:30 PM ET Company Participants Richard Tong - Executive Vice President and General Counsel Dickerson Wright - Executive Chairman Ben Heraud - Chief Executive Officer Edward Codispoti - Chief Financial Officer Kurt Allen - Senior Vice President, Geospatial Conference Call Participants Christopher Moore - CJS Securities Timothy Mulrooney - William Blair Robert Brown - Lake Street Capital Markets Jeff Martin - ROTH Capital Partn ...