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SOLV Energy

MWH
53
Military/Government/Technical · Industrials
Winston Score
53
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Based on the IPO prospectus (annual filing). This score will refine automatically once the company reports its first quarters.

Share count rising — dilution

+1.5% over 3y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 199.4M (2022) → 202.5M (2025)

SOLV Energy is a construction and engineering company that builds large solar power plants across the United States. Its main customers are utility companies, energy developers, and corporations that need big solar farms built on their behalf. The company is one of the largest utility-scale solar contractors in the country.

SOLV Energy makes money by winning contracts to design and build solar projects, then charging fees for that construction work. It operates primarily in the United States and has completed several gigawatts worth of solar installations, giving it a strong track record that helps it compete for large, complex projects. The key growth driver is the continued expansion of renewable energy in the U.S., supported by federal incentives like the Inflation Reduction Act — but the main risk is that project delays, rising material costs, or labor shortages can squeeze profit margins on fixed-price contracts.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

Revenue data limited

EPS Growth

EPS data limited

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$385M cash & investments

Quarterly Free Cash Flow

Company generates more cash than it spends — no dilution risk from fundraising

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
16.3%
Thin — 16.3% gross margin
Operating Margin
7.8%
Modest — 7.8% operating margin
ROCE
22.0%
Exceptional — 22.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales YoY
+34.8%
Fast-growing sales (34.8% YoY)
EPS YoY
+68.2%
Earnings growing fast (68.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
N/A
Data not available

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Cash Flow

Cash Conversion
222%
Turns 222% of profit into real cash
FCF Margin
12.5%
Converts sales into free cash efficiently (12.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.96
Moderate — manageable debt (0.96)
Interest Cover
3.71x
Tight — interest eats into profit (3.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
27.3x
Growth-priced — P/E 27.3

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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