Quality Investor

Willdan Group, Inc.

Rank #135Hypergrowth

WLDN · Nasdaq · Industrials

Willdan Group, Inc. (WLDN) — Rank #135 by gross profitability (GP/assets 0.40) · ROE 15.0% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001370450 · all metrics point-in-time as of the filing date.

About

Willdan Group, Inc., a technical services company, focuses on the provision of energy and infrastructure solutions in the United States and Canada.

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The company operates in two segments: Energy, and Engineering and Consulting. The Energy segment offers in-depth energy planning studies, economic analysis, modeling and forecasting software, decarbonization, program design and implementation, energy efficiency, turnkey energy and infrastructure projects, grid modernization, and utility-scale electrical engineering and construction management services. It serves investor-owned and municipal utilities, as well as investors and hyperscalers, and state and local governments. The Engineering and Consulting segment provides municipal and civil engineering, building and safety, code enforcement, fire plan and inspection, city engineering, construction management, design engineering, planning, and financial and municipal advisory services. It serves state and local governments, school districts, and utility districts.

The company was founded in 1964 and is headquartered in Anaheim, California.

Industry
Engineering & Construction
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
January 1

Price History

WLDN+112.6% · +16.3% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$1.19B

P/E (annual)

22.4

P/S (annual)

1.7

P/B

3.4

P/OCF (annual)

14.9

Shareholder Yield

-76.0%

Employees

1,814

Industry

Engineering & Construction

Exchange

Nasdaq

Signal Flags

3 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.40
Return on equity
15.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.81
Current ratio
1.37×
Net cash
-$32.38M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.7%

Growth

1/2 pass
Revenue growth
226.2%
Piotroski F-Score
N/A
Share dilution
76.0%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

5.2%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 76.0% — per-share value needs a total required return of 81.2% once share-count change is priced in.

vs. own 6-year median revenue growth: 25.7%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

1.1%

r = 10% (base)

5.2%

r = 12%

8.8%

Net debt / market cap: 2.8%

Base FCF: $70.7M3Y mean FCF: $11.5M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

20.1xExpensive
9.5xmed 14.6x34.3x

P / S

Price / revenue per share

0.9xExpensive
0.2xmed 0.4x1.4x

P / B

Price / book value per share

3.4xExpensive
0.8xmed 1.7x5.7x

P / GP

Price / gross profit per share

3.2xExpensive
0.5xmed 1.0x4.3x

P / FCF

Price / free cash flow per share

27.3xExpensive
3.3xmed 14.3x38.6x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.40

Primary signal (Novy-Marx).

3rd of 5 SIC 87 peers

Return on equity

15.0%

Gross margin

37.5%

4th of 5 SIC 87 peers

Revenue growth (YoY)

226.2%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2015201620162017
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.81

1st of 5 SIC 87 peers (best = lowest)

Current ratio

1.37×

5th of 5 SIC 87 peers

Quick ratio

0.61×

Net cash

-$32.38M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$70.70M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.35

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.7%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20122017
Decline
Value
Hypergrowth