One-glance verdict
Overvalued
$125.93 our estimate vs market $323.07
Wall Street consensus: $440.00 (249.4% higher than our fair-value estimate)
157% above our estimate, beyond the bull case
Fundamentals snapshot
IES Holdings, Inc.
IESC · NGM · Industrials · Engineering & Construction
Current price
$323.07
52-week range
$170.06 - $408.25
Market cap
$12.87B
Balance sheet
Healthy
287.17x Strong cushion
Net cash $310.92M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 18.2% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 43.0% above its 5-year average P/E.
What this company does
IES Holdings, Inc.
IES Holdings installs and maintains the essential electrical, technology, and mechanical systems that power buildings, from new homes to large data centers and factories. Its business is split into different areas, such as residential construction and large industrial projects, giving it multiple sources of revenue (money the company earns from its sales). This variety helps the company because if one part of the construction market is slow, another part might still be busy.
How the company got here
IES began in 1997 as a collection of smaller, local electrical contracting businesses. Instead of being one large company from the start, it grew by acquiring other companies, a strategy that is still part of its approach today. Originally named Integrated Electrical Services, it became a publicly traded company in 1998. To show that it had grown into more than just an electrical company, it changed its name to IES Holdings, Inc. in 2016.
What it actually does
IES Holdings doesn't sell products you'd find in a store; instead, it provides the essential electrical and technology systems that power buildings and infrastructure across the United States. Think of them as the company that installs the complex wiring and network systems for everything from new houses and apartment buildings to massive data centers and industrial factories. They handle the design, installation, and maintenance of these critical systems that are necessary for our daily lives.
Communications
This part of the company focuses on the technology backbone of modern buildings, especially large data centers that power the internet and cloud computing. They design and install the structured cabling and network systems that allow computers and servers to talk to each other. Their customers are often large technology companies or businesses that need reliable, high-speed data infrastructure. This segment has become a key area of growth as the demand for data centers has increased.
Residential
This is the part of IES that works on homes. They provide the electrical wiring for new single-family houses and apartment buildings, and also install heating, ventilation, and air conditioning (HVAC) systems. In some areas, they even handle the installation of cable television and residential solar power systems. Homebuilders and property developers are the main customers for these services. While once the largest part of the company, it now represents a smaller share of the business as other areas have grown faster.
Infrastructure Solutions
This segment provides highly specialized products and services for industrial customers and power-focused projects. They manufacture custom-built enclosures for large generators, like those used as backup power for data centers. This division also repairs and maintains large electric motors, generators, and other heavy-duty equipment used in factories and power plants. Their customers are typically large industrial companies that rely on heavy machinery and complex power systems to operate.
Commercial & Industrial
This division handles the electrical and mechanical systems for large-scale buildings and facilities that are not residential homes. This includes office buildings, manufacturing plants, hospitals, and even renewable energy projects like wind and solar farms. They provide everything from the initial design of the electrical systems to the construction and ongoing maintenance. This segment often works on complex projects that require specialized engineering knowledge.
What management is betting on now
The company's leadership is heavily focused on expanding its services for data centers and other digital infrastructure projects, which are in high demand. They are also concentrating on providing more custom-engineered products, which can be more profitable than basic installation labor. A key part of their strategy involves continuing to acquire smaller, well-run companies to grow their capabilities and enter new markets. By doing this, they aim to build a more profitable and resilient business that is less dependent on the ups and downs of any single construction market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$78.52M
FY2025 Q1
$24.09M
FY2025 Q2
$7.89M
FY2025 Q3
$74.84M
FY2025 Q4
$112.02M
FY2026 Q1
$-18.87M
FY2026 Q2
$71.45M
FY2026 Q3
$31.97M
Revenue
$1.24B
Net income
—
Diluted EPS
7.57
Operating cash flow
$108.43M
Free cash flow
$31.97M
Fetching…
Sources
Revenue
$974.28M
Net income
—
Diluted EPS
5.44
Operating cash flow
$103.29M
Free cash flow
$71.45M
Fetching…
Sources
Revenue
$870.96M
Net income
—
Diluted EPS
4.51
Operating cash flow
$27.70M
Free cash flow
$-18.87M
Fetching…
Sources
Revenue
$897.80M
Net income
$305.98M
Diluted EPS
4.99
Operating cash flow
$132.00M
Free cash flow
$112.02M
Fetching…
Sources
Revenue
$890.16M
Net income
—
Diluted EPS
3.81
Operating cash flow
$91.99M
Free cash flow
$74.84M
Fetching…
Sources
Revenue
$833.96M
Net income
—
Diluted EPS
3.50
Operating cash flow
$24.84M
Free cash flow
$7.89M
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Sources
Revenue
$749.55M
Net income
—
Diluted EPS
2.72
Operating cash flow
$37.26M
Free cash flow
$24.09M
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Sources
Revenue
$775.77M
Net income
$178.16M
Diluted EPS
3.06
Operating cash flow
$92.78M
Free cash flow
$78.52M
Fetching…
Sources
Is it cheap or expensive?
Fair value $125.93 vs current price $323.07
Wall Street consensus is the average analyst price target: $440.00 (249.4% higher than our fair-value estimate).
Our most-likely fair value is $125.93 a share — about 61.0% below today's price of $323.07, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $310.9M - more cash than debt. Interest coverage 287.2x.
Net debt
$-310.92M
Interest coverage
287.17x
IES Holdings, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
IESC
BASELINE
IES Holdings, Inc.
Total debt $76.94M Interest coverage 287.17x This is the baseline the peer rows are being compared against.
What you should know
The case for and against IESC
2 Rewards
1 Risk
Rewards
-
Revenue grew 18.2% last year.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 43.0% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.72x
Forward P/E
—
P/B
10.47x
P/S
3.23x
EV/EBITDA
21.95x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
26.3%
Operating margin
14.4%
Net margin
11.4%
ROE
44.5%
ROA
16.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.06x
Current ratio
1.63x
Quick ratio
1.46x
Total debt
$76.94M
Total cash
$387.86M
Growth
How the business has been compounding
Revenue TTM
$3.99B
Revenue 5Y CAGR
29.7%
EPS TTM
11.25
EPS 5Y CAGR
118.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$371.42M
Free CF TTM
$218.84M
FCF margin
5.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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