Bowman Consulting Group Ltd. (BWMN) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Bowman Consulting's EV/EBITDA of 18.3 is below its 5-year median of 25.6.

P/B above the industry

Bowman Consulting's price-to-book of 2.83 is above the Management and Public Relations Services median of 2.31.

Trading above fair value

The share price of $43.00 is above our fair value estimate of $35.82.

Margin of safety under 20%

The price is 20.1% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 23.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 25.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -107% over the last twelve months, against a 5-year average of 67.0% a year.

Growing faster than the industry

Revenue grew 16.0% over the last twelve months; the Management and Public Relations Services median is 7.2%.

Guidance raised

Bowman Consulting raised its full year 2026 Adjusted EBITDA Margin outlook on May 5, 2026.

Gross margin improving

Gross margin was 53.0% over the last twelve months, against 52.9% a year earlier.

Return on equity under 15%

Return on equity was -0.5% over the last twelve months and averaged 1.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.7%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Bowman Consulting's return on equity of -0.5% is below the Management and Public Relations Services median of 0.4%.

Earnings grew over 5 years

Net income grew 67.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -0.2% over the last twelve months, against a 5-year average of 0.7%.

Net margin below the industry

Bowman Consulting's net margin of -0.2% is below the Management and Public Relations Services median of 0.2%.

Low debt

Debt is 6.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 16.5% five years ago to 6.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 111% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.91 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.05; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Bowman Consulting has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.