Invitation to consider IES Holdings, Inc. Is it a value stock?
I just took a small position in IES Holdings, Inc. (IESC). IESC has benefited upon the build out of data centers and has had significant growth especially benefitting with the growth of AI but is diversified into residential, commercial, and industrial construction, along with a significant presence in renewable energy projects like solar and wind as well.
It is a small cap and its revenue growth has been exceptional benefitting from data center build out. But once the build out is completed that contribution should slow. So timing may be important with this stock. I think this company is a bit obscure and I just noticed this weekend. Here are some points. The company has about 98% institutional investors with little retail investors. It is headquartered in Houston, TX.
- Total Debt: Approximately $72.7 million as of June 2025; total liabilities stand around $647.3 million, and shareholder equity (book value) is about $781.4 million. Re, the debt, I would say minimal.
- Its TTM PE is 25.8,
I asked AI to help me assess IES holding's ability to find talent in this growing field and it made this interesting response about a guy named Jak Crawford:
Quote:
Jak Crawford is a young American racing driver (from Houston, Texas) competing in Formula 2, which is the tier just below Formula 1.
IES Holdings (IESC), headquartered in Houston, is one of his major sponsors. The sponsorship isn’t only about putting a logo on a race car — it’s part of IES’s workforce development and branding strategy:
- Recruitment Tool: IES has stated that aligning with motorsport helps them appeal to younger generations who might otherwise overlook construction or electrical careers. Racing carries excitement and innovation, which the company leverages to make skilled trades more attractive.
- Employee Engagement: IES uses the sponsorship as an incentive for its staff. High-performing employees and customers are invited to attend Formula 2 (and sometimes Formula 1) events where Crawford races. This strengthens loyalty and morale inside the company.
- Visibility & Branding: By associating with an ambitious young Texan driver who’s climbing the international racing ladder, IES boosts its visibility outside traditional industry circles. This helps them compete for talent in a tight U.S. labor market for electricians and skilled technicians.
So, the Jak Crawford partnership is both marketing and HR strategy: it elevates IES’s brand, helps attract recruits, and gives employees something exciting to rally around.
Unquote.
I would appreciate if this could be considered to be a value stock proposition as well. Thanks for your consideration. |
