SOLV Energy Inc. Class A Common Stock (MWH)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand and a price that leaves room for error. SOLV Energy is an infrastructure contractor for utility-scale solar and battery storage—engineering, procurement, construction, and maintenance. The business is exposed to utility-scale solar and battery storage, and revenue is scaling rapidly. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $951.2M and net income was $37.0M. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $536.0M and net income was $44.3M. So sales rose sharply while profit slipped, and the latest quarterly margin was only 3.89%. That tells me this is a low-margin, project-based business where execution and cost control matter more than a wide moat. The balance sheet looks conservative, with D/E of 0.10, and trailing free cash flow was $294.8M, a FairStock-calculated FCF yield of 5.7% on the $5.2B market cap. FairStock's Piotroski F-Score of 7/9 and Altman Z-Score of 3.05 suggest financial health is decent. FairStock's return figures are mixed: ROE is 35.28%, but ROCE is 8.09%, so the gap suggests returns on total capital are more modest. At the 2026-10-13 close of $25.73, FairStock's P/E is 43.61 and P/B is 6.42. FairStock's Graham Number is $5.70, leaving a margin of safety of -351.40%. Even with PEG 1.23 and EV/EBITDA 17.05, the price already reflects a lot of future growth. FairStock's Lynch category is none because only 0 years of filed results are available and it needs 3. FairStock's overall score is 53/100. I would want a longer track record and better margins before calling this a bargain.

In plain English: SOLV Energy builds and takes care of large solar and battery power projects. In the three months ended June 30, 2026, sales were much higher than in the same three months of 2025, but profit slipped and margins are thin. At the recent price of $25.73 from October 13, 2026, the stock looks expensive compared with the company’s earnings and accounting value, though it produces cash and carries little debt.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer