Bowman Consulting Group Ltd. Common Stock (BWMN)

FairStock Score: 23/100 — RISKY

Key Financials

Strengths

• Generates $45 million in annual free cash flow (8.3% yield on market cap)

Concerns

• Trades significantly above Graham Number ($16) with negative 98% margin of safety—limited downside protection
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Bowman Consulting Group Ltd. Common Stock is a micro-cap industrials company valued at $535 million. The business generates $490 million in annual revenue with a 0.4% net margin and $45 million in free cash flow. From a quality standpoint, Bowman shows distressed Altman Z-Score of 1.2 warrants caution and modest 5% ROE. On valuation, the stock is commanding a steep 43.1x multiple, with trades above its Graham Number with a negative 98% margin. Growth dynamics show revenue growing at 13.9% and profit growth of -66.7%. Our composite FairStock Score of 23/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $45 million in annual free cash flow (8.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 43x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer