| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 581.69 | 656 |
| Intrinsic value (DCF) | 39.20 | -49 |
| Graham-Dodd Method | 14.92 | -81 |
| Graham Formula | 30.47 | -60 |
Willdan Group, Inc. (NASDAQ: WLDN) is a leading provider of professional, technical, and consulting services in the U.S., specializing in energy efficiency and infrastructure solutions. Founded in 1964 and headquartered in Anaheim, California, Willdan operates through two key segments: Energy, and Engineering and Consulting. The Energy segment delivers comprehensive services such as energy audits, program design, grid optimization, and performance contracting, catering to utilities, government agencies, and commercial clients. The Engineering and Consulting segment offers critical services like building safety, disaster recovery, transportation engineering, and financial consulting, serving public agencies and private enterprises. With a strong focus on sustainability and smart infrastructure, Willdan plays a pivotal role in helping clients navigate regulatory challenges and adopt energy-efficient technologies. The company’s diversified service portfolio and expertise in public-sector projects position it as a key player in the growing engineering and construction industry.
Willdan Group presents a compelling investment case with its niche focus on energy efficiency and public-sector consulting, benefiting from increasing demand for sustainable infrastructure solutions. The company’s solid revenue growth ($565.8M in FY 2024) and profitability (net income of $22.57M) reflect its strong execution. However, risks include exposure to government spending cycles and competitive pressures in the engineering sector. With a market cap of ~$746M and a beta of 1.08, WLDN offers moderate volatility and growth potential, though its lack of dividends may deter income-focused investors. Positive operating cash flow ($72.1M) and manageable debt ($107.7M) underscore financial stability.
Willdan Group’s competitive advantage lies in its dual-segment strategy, combining energy efficiency expertise with engineering consulting—a rare synergy in the mid-market engineering sector. Its Energy segment benefits from long-term utility contracts and regulatory tailwinds favoring grid modernization, while the Engineering segment leverages deep public-sector relationships for recurring revenue. However, the company faces fragmentation in both segments, competing against larger firms like AECOM (ACM) in infrastructure and smaller regional players in energy services. Willdan’s differentiation stems from its integrated solutions (e.g., pairing energy audits with financing options) and agility in serving municipal clients. Challenges include scalability limitations compared to global engineering firms and dependence on federal/state funding for public projects. Its ~$746M market cap suggests a mid-tier position, requiring continued M&A or organic specialization to outpace rivals.