1Y Target$787.80Model estimate · no analyst coverage
5Y Target$1,153Compound horizon
10Y Target$1,711Long-dated conviction
FCF$228mTTMC
FCF $228m — modest; watch for margin expansion
Rev+22.7%TTM YoYA-
Revenue +22.7% — strong growth, well above S&P median (~7%)
D/E0.06A
D/E 0.06 — least levered decile in Industrials (≈10th pctile)
P/E60.8xD
P/E 60.8 — most expensive decile in Industrials (≈95th pctile)
PEG——
PEG not meaningful — earnings growth negative or data unavailable
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 58.2
Quality81.0
Growth90.9
Value26.8
Why this score
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
2% off the 12-month high
vs DCF fair value788% aboveest. fair value ~$77
What the price assumes: free cash flow compounding above 60% a year for the next decade — vs the ~23% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability46% · A-gross profit ÷ total assets (Novy-Marx)
ROIC31.7% · Areturn on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
The bull case hinges on IES Holdings’ dominant position in the data‑center communications segment, where demand for high‑density power and fiber is exploding. The business is delivering 22.7% FY YoY revenue growth, converting that into a healthy 11.5% profit margin and an eye‑popping ROE of 37.3%, which fuels the Growth pillar of our model (score 91) and justifies the premium multiple (P/E 30.4). With a market cap of $13.6 b and free cash flow of $228 m, the company can reinvest to capture more of the expanding data‑center spend, making the compounding engine the single driver of upside.
Moat
IES’s moat stems from its integrated, turn‑key electrical and technology systems for mission‑critical data‑center and high‑tech facilities, where switching costs are steep because customers rely on proven designs, extensive testing, and ongoing maintenance contracts. The Communications segment’s deep relationships with co‑location and managed‑hosting operators lock in recurring service revenue, while the 37.3% ROE reflects pricing power derived from category leadership in complex, regulated infrastructure builds that few competitors can replicate quickly.
Risk
The bear case focuses on the lofty valuation: a P/E of 30.4 is high for an engineering‑construction firm, and the Bull Rankings model’s Value pillar (27) flags that the stock may be over‑priced relative to peers. If revenue growth decelerates from the current 22.7% to below 15% as data‑center capex cycles, margins could compress, and the high beta of 1.82 would amplify price drops. A sustained slowdown in the communications‑infrastructure market would push the stock below the reverse‑DCF implied 57% FCF growth, confirming the downside.
Horizon
1-3 yr $787.80 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $1,153 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $1,711 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
IESC vs the Top Picks average
Pillar
IESC
Book avg
Diff
Quality
0.81
0.84
-0.03
Growth
0.91
0.84
+0.07
Value
0.27
0.78
-0.52
Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · IESC
Trend
+2.9 over 47 daily scores
From 55.3 (Jun 22) → 58.2 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · IESC
$
%
%
Shares to buy
2
Position size
$1,370
2.7% of portfolio
Stop price
$513.78
25% below $685.04
$ at risk if stopped
$342.52
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
IES Holdings, Inc. (IESC): score, valuation & FAQ
IES Holdings, Inc. (IESC) is a Engineering & Construction company that scores 58.2 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A) and Rev (A-), while P/E (D) rate weaker. On valuation, IESC sits about 788% above our discounted-cash-flow fair value — the current price implies free-cash-flow growth above 60% a year for the next decade.
Is IESC a good stock to buy?
Bull Rankings scores IESC 58.2 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A) and Rev (A-). A score is a quantitative screen of IES Holdings, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does IESC score 58.2 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). IESC earns its highest marks on D/E (A) and Rev (A-), and is held back by P/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is IESC overvalued or undervalued?
Based on $685.04, IESC sits about 788% above our discounted-cash-flow fair value — the current price implies free-cash-flow growth above 60% a year for the next decade. It trades at a 60.8x P/E (graded D). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in IESC?
The bear case focuses on the lofty valuation: a P/E of 30.4 is high for an engineering‑construction firm, and the Bull Rankings model’s Value pillar (27) flags that the stock may be over‑priced relative to peers. If revenue growth decelerates from the current 22.7% to below 15% as data‑center capex cycles, margins could compress, and the high beta of 1.82 would amplify price drops. A sustained slowdown in the communications‑infrastructure market would push the stock below the reverse‑DCF implied 57% FCF growth, confirming the downside.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.