* Note: Prices are in Million (M) USD.
Description:
Everus Construction Group, Inc. provides utility construction services. The company is headquartered in Bismarck, North Dakota.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $85 M
Debt : $363 M
EBITDA : $255 M
Net Debt (Debt - Cash): $278 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Engineering & construction
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 17.83
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 4 overlapping fiscal years (max 20).Average Free Cash Flow: $62 M
Average Revenue: $2,614 M
Revenue Converted To Free Cash Flow (%): 2.4%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Error: This stock does not have 5 years of revenue data.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's ability to buy back its own share:
Error: This stock does not have 5 years of share count data.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.12
Trailing 12-Month Earnings Per Share (EPS): $4.69
Average Earnings Per Share (EPS): $4.40
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 3 valid ROE years (max 20).Average ROE: 32.4%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $78
52-Week Low: $31
Threshold Price (15% Above 52-Week Low): $36
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,454 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Everus Construction Group Inc (ECG) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 1 Years Avg PE
40.00 (>2× median)
• ROE Based PE
35.91 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 1 Years Avg P/E (40.00)
× EPS ($4.40) = $176.00.
Last 1 Years Avg PE 40, Fair Value PE 12, Industry Based PE 18, RCFC Based PE 11.9, ROE Based PE 35.91, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 22.48. Value-Trades has assined P/E value 22.48. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.40.
The fair value of Everus Construction Group Inc (ECG) stock should be (22.48 x $4.40) = $98.92.
