Top 15 Engineering & Construction Stocks, Ranked by Marvin
Marvin's rules ranked 15 engineering and construction stocks by Overall score. Comfort Systems USA, Everus Construction Group and EMCOR Group lead the list, which compares each company only with industry peers.
Engineering and construction companies design and build things like buildings, power systems, roads and utility networks. Their results often depend on large projects, so growth and profit margins can differ a lot from one company to the next.
This list covers 15 companies in the industry, ordered by Marvin's Overall score. Each pick below shows a few figures from the latest fiscal year, such as revenue growth, margins and debt, along with one caution.
Keep in mind that the scores compare each company only with others in the same industry. They describe today's picture and are not advice or a forecast. A missing figure means the data was not available for that company.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size threshold and ranked them by Overall score, highest first. Overall, Quality and Opportunity are scored on a scale from zero to one hundred. Each score is relative to the company's own industry, here Engineering & Construction, so a high score means a company compares well with its industry peers, not with every stock in the market.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Engineering & Construction industry, highest Overall score first.
The stocks, one by one
Comfort Systems USA, Inc. FIX
Comfort Systems USA has an Overall score of 95, revenue growth of 29.5% and an operating margin of 16.5%. Its debt-to-equity ratio of 0.11 points to light borrowing. Caution: the score compares it only with industry peers, not with all companies.
Everus Construction Group, Inc. ECG
Everus Construction Group grew revenue 31.5% last fiscal year, one of the faster rates on this list, but its operating margin is thinner at 7.8%. Its Quality score of 63 is well below its Overall score of 90. Caution: thin margins leave less cushion.
EMCOR Group, Inc. EME
EMCOR Group has a high Quality score of 91, a return on equity of 35.3% and an operating margin of 10.4%, all solid. Revenue grew 16.6%. Caution: its debt-to-equity figure is not available, so its borrowing level cannot be checked here.
Willdan Group, Inc. WLDN
Willdan Group has a gross margin of 37.8%, the highest on this list, and revenue growth of 20.5%. Debt is low at 0.25. Caution: its operating margin of 7.1% is modest, so much of the gross profit is used up by other costs.
Tutor Perini Corporation TPC
Tutor Perini grew revenue 28.1% and turned 10.4% of revenue into free cash flow, which is healthy. Caution: its operating margin of 4.5% and return on equity of 9.8% are on the low side compared with several peers here.
IES Holdings, Inc. IESC
IES Holdings shows a return on equity of 37.3% and an operating margin of 12.4%, both strong. Revenue grew 16.9%. Caution: its free cash flow margin of 5.7% is modest, and no debt-to-equity figure is available.
Sterling Infrastructure, Inc. STRL
Sterling Infrastructure combines an operating margin of 17.5% with a free cash flow margin of 14.0% and low debt at 0.25. Caution: its Opportunity score of 70 is noticeably lower than its Quality score of 78.
Argan, Inc. AGX
Argan turned 45.9% of revenue into free cash flow, far above the others here, and has an operating margin of 15.4%. Caution: revenue growth was a modest 8.1%, its Opportunity score is only 40, and no debt figure is available.
Tetra Tech, Inc. TTEK
Tetra Tech has a Quality score of 86, an operating margin of 12.1% and a return on equity of 23.6%. Caution: revenue growth was slow at 4.7%, and its Opportunity score of 55 is middling.
Exponent, Inc. EXPO
Exponent has the highest operating margin on the list at 20.2%, plus a return on equity of 38.7%. Caution: revenue growth was only 4.2%, its Opportunity score is just 32, and no gross margin figure is available.
Construction Partners, Inc. ROAD
Construction Partners grew revenue 54.2%, the fastest on this list, with an operating margin of 8.6%. Caution: its debt-to-equity ratio of 1.82 is the highest here, which means heavy borrowing relative to its equity.
Dycom Industries, Inc. DY
Dycom Industries grew revenue 17.9% and turned 6.8% of revenue into free cash flow. Its return on equity is 16.0%. Caution: debt-to-equity of 1.48 is fairly high, and operating and gross margin figures are not available.
KBR, Inc. KBR
KBR has a return on equity of 25.9% and an operating margin of 9.5%. Caution: revenue growth was nearly flat at 1.0%, and its debt-to-equity ratio of 1.71 shows a lot of borrowing relative to equity.
MYR Group Inc. MYRG
MYR Group carries very little debt, with a debt-to-equity ratio of 0.09, and has a return on equity of 21.9%. Caution: margins are thin, with an operating margin of 5.6% and a free cash flow margin of 4.8%.
Quanta Services, Inc. PWR
Quanta Services has a Quality score of 73 and grew revenue 20.3% last fiscal year. Caution: its Opportunity score of 42 is low, and its operating margin of 6.2% and return on equity of 13.8% are modest.
Common questions
What do engineering and construction companies do?
They plan, design and build large projects such as buildings, electrical and mechanical systems, roads, pipelines and utility networks. Some focus on construction work, while others sell engineering or consulting services.
Why do a stock's Overall, Quality and Opportunity scores differ?
Marvin scores each part separately, always against companies in the same industry. A company can score high on Quality for strong margins and returns but lower on Opportunity, which pulls its Overall score down.
Does a high Marvin score mean I should buy the stock?
No. The scores only describe how a company compares with its industry peers today. They are not advice or a prediction, and they do not say whether a stock's price is attractive. Check the figures and your own goals before deciding anything.
Keep reading
- Top 15 Industrials Stocks Ranked by Marvin Opportunity Score
- Top 15 Industrials Companies With the Strongest Businesses
- Top 20 Large-Cap Stocks Right Now, Ranked by Marvin Scores
- Top 15 Industrials Stocks Ranked by Marvin Scores
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.