Willdan Group, Inc. (WLDN) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Willdan Group, Inc. (WLDN) Industrial Operations Profile

Willdan Group, Inc. delivers specialized consulting services in energy and engineering, focusing on public and private sector clients across the U.S. With a strong foothold in energy efficiency and infrastructure projects, Willdan leverages its technical expertise to drive sustainable solutions and optimize operational performance for its customers.

What Is the Investment Thesis for WLDN?

Willdan Group presents a compelling investment case based on its strategic positioning in the growing energy efficiency and infrastructure sectors. The company's diversified service offerings and established relationships with public and private sector clients provide a stable revenue base. With a P/E ratio of 21.3 and a profit margin of 8.2%, Willdan demonstrates solid financial performance. Growth catalysts include increasing demand for energy-efficient solutions and infrastructure upgrades, driven by regulatory mandates and sustainability initiatives. Key risks include economic downturns affecting infrastructure spending and competition from larger engineering firms. The company's ability to secure and execute contracts effectively will be crucial for sustained growth.

Based on FMP financials and quantitative analysis

WLDN Key Highlights

• Market capitalization of $1.10B, reflecting investor confidence in Willdan's growth potential.
• P/E ratio of 21.3, indicating a reasonable valuation compared to earnings.
• Gross margin of 38.2%, showcasing efficient cost management and pricing strategies.
• Profit margin of 8.2%, demonstrating the company's ability to convert revenue into profit.
• Presence in both Energy and Engineering & Consulting segments provides diversification and resilience.

Who Are WLDN's Competitors?

WLDN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are WLDN's Key Strengths?

• Strong expertise in energy efficiency and infrastructure.
• Established relationships with public sector clients.
• Diversified service offerings.
• Experienced management team.

What Are WLDN's Weaknesses?

• Reliance on government funding and contracts.
• Exposure to economic cycles and infrastructure spending.
• Limited international presence.
• Smaller scale compared to larger competitors.

What Could Drive WLDN Stock Higher?

• Infrastructure Investment and Jobs Act driving demand for infrastructure projects.
• Increasing focus on energy efficiency and sustainability.
• Potential acquisitions to expand service offerings and geographic reach.
• New government regulations promoting energy conservation.

What Are the Key Risks for WLDN?

• Insider selling — insiders were net sellers of roughly $7.6M recently.
• Economic downturns affecting infrastructure spending.
• Competition from larger engineering and consulting firms.
• Changes in government regulations and policies.
• Technological disruptions and evolving client needs.

What Are the Growth Opportunities for WLDN?

• Expansion of Energy Efficiency Programs: The increasing focus on energy conservation and sustainability is driving demand for energy efficiency programs. Willdan can capitalize on this trend by expanding its service offerings to include advanced energy audits, demand response programs, and renewable energy integration. The market for energy efficiency services is projected to reach $450 billion by 2030, presenting a significant growth opportunity for Willdan. Success hinges on securing contracts with utilities and government agencies.
• Infrastructure Modernization Projects: Aging infrastructure across the United States requires significant upgrades and modernization. Willdan's engineering and consulting services are well-positioned to benefit from this trend. The Infrastructure Investment and Jobs Act allocates billions of dollars for infrastructure projects, creating opportunities for Willdan to secure contracts for transportation, water, and energy infrastructure projects. Securing these contracts and managing them effectively is crucial.
• Geographic Expansion: Willdan primarily operates in the United States, leaving room for geographic expansion into new markets. Expanding into regions with growing populations and infrastructure needs can drive revenue growth. International markets, particularly in developing countries, offer long-term growth potential. This expansion requires careful market analysis and strategic partnerships.
• Adoption of Smart City Technologies: The rise of smart cities presents opportunities for Willdan to provide consulting services related to smart grid implementation, intelligent transportation systems, and data analytics. These technologies optimize resource utilization and improve the quality of life for urban residents. The smart city market is expected to reach $2.5 trillion by 2028, offering a substantial growth avenue for Willdan. Expertise in integrating these technologies is key.
• Strategic Acquisitions: Willdan can pursue strategic acquisitions to expand its service offerings, geographic reach, and market share. Acquiring companies with complementary expertise and customer relationships can accelerate growth and enhance competitiveness. Identifying and integrating suitable acquisition targets is essential for realizing the benefits of this strategy. Synergies and cost savings from acquisitions can improve profitability.

What Opportunities Does WLDN Have?

• Increasing demand for energy efficiency and sustainability solutions.
• Infrastructure modernization projects and government spending.
• Expansion into new geographic markets.
• Adoption of smart city technologies.

What Threats Does WLDN Face?

• Competition from larger engineering and consulting firms.
• Economic downturns affecting infrastructure spending.
• Changes in government regulations and policies.
• Technological disruptions and evolving client needs.

What Are WLDN's Competitive Advantages?

• Established relationships with public sector clients, providing a stable revenue base.
• Specialized expertise in energy efficiency and infrastructure projects.
• Diversified service offerings across energy and engineering sectors.
• Strong reputation for delivering high-quality services.

What Does WLDN Do?

Founded in 1964 and headquartered in Anaheim, California, Willdan Group, Inc. has evolved into a leading provider of professional, technical, and consulting services. The company operates through two primary segments: Energy, and Engineering and Consulting. The Energy segment offers a suite of services including comprehensive audits, program design, demand reduction strategies, grid optimization, and performance contracting. These services aim to enhance energy efficiency and sustainability for utilities and other clients. The Engineering and Consulting segment focuses on building and safety, city engineering, disaster recovery, and transportation engineering, supporting infrastructure development and regulatory compliance. Willdan serves a diverse clientele, including public agencies such as cities, counties, and school districts, as well as investor-owned utilities, state and federal agencies, and commercial and industrial firms. With a workforce of 1,761 employees, Willdan leverages its deep industry expertise and technical capabilities to deliver tailored solutions that address the evolving needs of its clients.

What Products and Services Does WLDN Offer?

• Provides energy efficiency consulting services.
• Offers engineering and consulting services for infrastructure projects.
• Conducts comprehensive energy audits and surveys.
• Designs and implements demand reduction programs.
• Provides grid optimization and benchmarking analyses.
• Offers construction management and performance contracting services.
• Provides building and safety and city engineering services.

How Does WLDN Make Money?

• Generates revenue through consulting and service contracts with public and private sector clients.
• Offers a range of services in energy efficiency, engineering, and consulting.
• Focuses on providing tailored solutions to meet the specific needs of its clients.
• Secures contracts through competitive bidding and established relationships.

What Industry Does WLDN Operate In?

Willdan Group operates within the engineering and construction industry, which is experiencing growth driven by infrastructure development and energy efficiency initiatives. The market is competitive, with numerous players ranging from large multinational corporations to smaller specialized firms. Willdan differentiates itself through its focus on energy efficiency and its strong relationships with public sector clients. The industry is influenced by regulatory policies, technological advancements, and economic conditions. As governments and businesses prioritize sustainability, the demand for Willdan's services is expected to increase.

Who Are WLDN's Key Customers?

• Public and governmental agencies, including cities, counties, and school districts.
• Investor and municipal-owned energy utilities.
• State and federal agencies.
• Commercial and industrial firms.

How Willdan Group, Inc. Is Valued

Willdan Group, Inc. carries a market capitalization of $1.10B, placing it in the small-cap category. Relative to its peer group, WLDN's quantitative score of 76/100 is above the peer average of 62/100.

Company Profile

Willdan Group, Inc. operates in the Engineering & Construction industry within the Industrials sector. It is headquartered in Anaheim, US. The company is led by CEO Michael A. Bieber. WLDN has traded publicly since 2006.

ROE 19%Key Financial Metrics

Return on equity for Willdan Group, Inc. stands at 19.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 11.0%, showing how much profit it generates from its asset base. WLDN trades at a trailing price-to-earnings ratio of 21.25, below the Industrials sector average of ~30x. Its free cash flow yield is 3.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.68 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Willdan Group, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 5.38 places it in the safe zone, indicating low near-term bankruptcy risk.

FY2027 estForward Outlook

Wall Street analysts project Willdan Group, Inc. revenue of about $412.8M for fiscal 2027, with EPS near $4.92.

Net sellingInsider Activity

Over the past six months, Willdan Group, Inc. insiders filed 30 SEC Form 4 transactions — 17 sales and 13 purchases. On net that is roughly 50K shares disposed (about $7.6M), a signal worth weighing alongside the fundamentals.

WLDN Financials

WLDN Latest News

WLDN Analyst Consensus

WLDN MoonshotScore

Willdan Group, Inc. Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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