Willdan Group Inc. Common Stock (WLDN)

FairStock Score: 68/100 — STEADY

Key Financials

Strengths

• Generates $53 million in annual free cash flow (4.8% yield on market cap)
• Solid return on equity of 19.5% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.23, providing financial flexibility
• Revenue growth of 20.6% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($40) with negative 86% margin of safety—limited downside protection

AI Analysis

Willdan Group Inc. Common Stock is a micro-cap industrials company valued at $1.1 billion. The business generates $682 million in annual revenue with a 2.7% net margin and $53 million in free cash flow. From a quality standpoint, Willdan shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.6. On valuation, the stock is reasonably priced at 22.0x earnings, with trades above its Graham Number with a negative 86% margin. Growth dynamics show revenue growing at 20.6% and profit growth of 143.4%. Our composite FairStock Score of 68/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Willdan's 21% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $53 million in annual free cash flow (4.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. 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