Willdan Group, Inc. (WLDN) stock analysis

P/E below its 5-year median

Willdan's P/E of 17.0 is below its own 5-year median of 33.7.

P/E below the industry

Willdan's P/E of 17.0 is below the Engineering, Accounting, Research, Management, and Related Services median of 25.8.

EV/EBITDA below its 5-year median

Willdan's EV/EBITDA of 14.2 is below its 5-year median of 18.0.

P/B above the industry

Willdan's price-to-book of 2.87 is above the Engineering, Accounting, Research, Management, and Related Services median of 2.67.

Trading below fair value

The share price of $69.88 is below our fair value estimate of $89.04.

Margin of safety over 20%

The price is 21.5% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 16.7% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 18.8% over the last twelve months; the Engineering, Accounting, Research, Management, and Related Services median is 0.2%.

Guidance raised

Willdan raised its Fiscal Year 2026 Net Revenue outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 38.2% over the last twelve months, against 38.0% a year earlier.

Return on equity under 15%

Return on equity was 19.4% over the last twelve months and averaged 5.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 15.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Willdan's return on equity of 19.4% is above the Engineering, Accounting, Research, Management, and Related Services median of 10.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 8.2% over the last twelve months, against a 5-year average of 1.9%.

Net margin above the industry

Willdan's net margin of 8.2% is above the Engineering, Accounting, Research, Management, and Related Services median of 5.1%.

Low debt

Debt is 16.6% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 58.0% five years ago to 16.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 117% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.48 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.26; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Willdan 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.