Everus Construction Group, Inc.
Everus Construction Group, Inc. Fundamental Analysis
Everus Construction Group, Inc. (ECG) shows moderate financial fundamentals with a PE ratio of 28.45, profit margin of 5.39%, and ROE of 37.07%. The company generates $3.7B in annual revenue with weak year-over-year growth of -0.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ECG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentECG demonstrates superior asset utilization.
Valuation Score
WeakECG trades at a premium to fair value.
Growth Score
WeakECG faces weak or negative growth trends.
Financial Health Score
ExcellentECG maintains a strong and stable balance sheet.
Profitability Score
ModerateECG maintains healthy but balanced margins.
Key Financial Metrics
Is ECG Expensive or Cheap?
P/E Ratio
ECG trades at 28.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ECG's PEG of 2.53 indicates potential overvaluation.
Price to Book
The market values Everus Construction Group, Inc. at 9.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.39 times EBITDA. This signals the market has high growth expectations.
How Well Does ECG Make Money?
Net Profit Margin
For every $100 in sales, Everus Construction Group, Inc. keeps $5.39 as profit after all expenses.
Operating Margin
Core operations generate 7.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $37.07 in profit for every $100 of shareholder equity.
ROA
Everus Construction Group, Inc. generates $11.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Everus Construction Group, Inc. generates limited operating cash flow of $156.71M, signaling weaker underlying cash strength.
Free Cash Flow
Everus Construction Group, Inc. generates weak or negative free cash flow of $89.93M, restricting financial flexibility.
FCF Per Share
Each share generates $1.76 in free cash annually.
FCF Yield
ECG converts 1.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How ECG Stacks Against Its Sector Peers
| Metric | ECG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.45 | 25.83 | Worse (Expensive) |
| ROE | 37.07% | 1278.00% | Weak |
| Net Margin | 5.39% | -43774.00% (disorted) | Weak |
| Debt/Equity | 0.17 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 10.63 | Neutral |
| ROA | 11.67% | -1539613.00% (disorted) | Strong |
ECG outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Everus Construction Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.88%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
31.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
91.17%
Industry Style: Cyclical, Value, Infrastructure
High Growth