Everus Construction Group Inc. Common Stock (ECG)

FairStock Score: 63/100 — STEADY

Key Financials

Strengths

• Generates $41 million in annual free cash flow (0.6% yield on market cap)
• High return on equity of 38.3% demonstrating efficient capital deployment
• Altman Z-Score of 5.3 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 33.1% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($33) with negative 314% margin of safety—limited downside protection

AI Analysis

Everus Construction Group Inc. Common Stock is a small-cap industrials company valued at $7.0 billion. The business generates $3.7 billion in annual revenue with a 1.5% net margin and $41 million in free cash flow. From a quality standpoint, Everus shows Altman Z-Score of 5.3 confirms fortress-level solvency and strong 38% ROE. On valuation, the stock is trading at a premium 34.5x earnings, with trades far above its Graham Number ($33) with no margin of safety. Growth dynamics show revenue growing at 33.1% and profit growth of 60.4%. Our composite FairStock Score of 63/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Everus's 33% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $41 million in annual free cash flow (0.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 35x 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