MWH

SOLV Energy

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Utilities

industry

Utilities - Renewable

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

03/19/26

Business Summary

MWH SOLV Energy operates within renewable utility infrastructure, generating cash through large-scale energy projects that convert capital investment into contracted or regulated revenue streams. The business model depends on deploying capital into energy assets that produce recurring cash flow, reflected in its 33.00% operating margin and 22.30% ROIC. Its moat is execution-driven: scale, project expertise, and the ability to generate high returns in a capital-heavy industry create barriers to weaker operators. Financial stability, evidenced by a 4.5 Altman Z-Score and modest 7.90% Debt/Equity, allows it to compete aggressively while maintaining balance sheet strength.

 


VALUATION

P/E

42.4

Market Cap ($M USD)

$6,410

Forward P/E

20.8

PEG

-

PRICE TO SALES

2.5

PRICE TO BOOK

14.2

EV / EBITDA

22.2

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

-

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.75

Next Year EPS Growth Estimate

$1.52

Next Year Revenue Growth Estimate

13.40%

Return on Equity (ROE)

33.00%

FREE CASH FLOW

Operating Margin

7.90%

Debt-to-Equity

1

Piotroski F-Score

-

Altman Z-Score

4.5

Return on Invested Capital (ROIC)

22.30%

Current Ratio

1

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Gainseekers Quantitative Analysis

Summary

At 42.4x earnings with a Forward P/E of 20.8, the market is clearly pricing in a material earnings normalization or acceleration, yet the absence of a PEG ratio makes it difficult to justify the multiple on a growth-adjusted basis. A 4.5 Altman Z-Score signals strong balance sheet stability and low near-term bankruptcy risk, which supports the premium valuation. However, with a $6,410M market cap in a capital-intensive sector and a Price/Book of 14.2, this is not statistically cheap—this is a quality compounder priced for execution, not a distressed value play. The stock is not obviously mispriced; it is priced for operational strength and sustained profitability.

AI Exposure / Tech Reliance

As a Utilities – Renewable operator, the company sits directly in the infrastructure backbone required to power AI-driven data center expansion. Renewable capacity growth structurally benefits from rising electricity demand tied to AI and electrification trends. The resilience here comes from essential energy infrastructure rather than speculative technology exposure.

The Bull Case

A GARP investor buys this because the operating engine is real: a 33.00% operating margin in Utilities is elite, and a 22.30% ROIC signals disciplined capital allocation in a sector notorious for mediocre returns. Return on Equity of 13.40% is solid, especially when paired with a conservative 7.90% Debt/Equity ratio, indicating the returns are not being artificially inflated through leverage. The 20.8 Forward P/E versus a trailing 42.4 P/E suggests earnings expansion or normalization that compresses valuation risk if delivered. Add a 4.5 Altman Z-Score and you have financial durability plus high returns on invested capital—an attractive combination for long-term institutional allocators. The lack of a Piotroski F-Score disclosure is a data gap, but the profitability metrics already signal operational strength.

The Bear Case

The valuation is the first red flag: 42.4x earnings and 14.2x book in a utility framework leaves little room for execution errors. The PEG ratio is unavailable, which makes it impossible to verify whether the earnings growth justifies the premium multiple. A Current Ratio of 1 suggests limited short-term liquidity cushion, and while Debt/Equity at 7.90% is low, utilities are inherently capital-intensive and sensitive to funding cycles. Institutional ownership at $35.10 provides some sponsorship, but without short interest data or payout support—TTM Yield of 1 and no listed dividend per share—income investors are not being meaningfully compensated for valuation risk.

Market Sentiment & Smart Money

Short Interest %

3.60%

Analyst Consensus

1.18

Average Analyst Price Target

$35.10

Institutional Ownership %

79.60%

1-Year Beta

1.29

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

95.90%

Distance to 52-Week Low

119.80%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.