IES Holdings Inc. Common Stock (IESC)

FairStock Score: 63/100 — STEADY

Key Financials

Strengths

• Generates $210 million in annual free cash flow (1.8% yield on market cap)
• High return on equity of 41.7% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.07, providing financial flexibility
• Altman Z-Score of 12.0 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 16.2% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($135) with negative 337% margin of safety—limited downside protection

AI Analysis

IES Holdings Inc. Common Stock is a mid-cap industrials company valued at $11.8 billion. The business generates $3.5 billion in annual revenue with a 2.6% net margin and $210 million in free cash flow. From a quality standpoint, IES shows Altman Z-Score of 12.0 confirms fortress-level solvency and extraordinary 42% return on equity. On valuation, the stock is trading at a premium 34.8x earnings, with trades far above its Graham Number ($135) with no margin of safety. Growth dynamics show revenue growing at 16.2% and profit growth of 62.4%. 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

IES's 16% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $210 million in annual free cash flow (1.8% 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