The Futility of Infrastructure and Energy Alternatives Inc. (NASDAQ:IEA)’s Fundamentals

Infrastructure and Energy Alternatives Inc. (NASDAQ:IEA) shares fell to a low of $11.7182 before closing at $12.32. Intraday shares traded counted 0.43 million, which was 40.9% higher than its 30-day average trading volume of 723.90K. IEA’s previous close was $12.02 while the outstanding shares total 23.06M. The firm has a beta of 1.55. The stock’s Relative Strength Index (RSI) is 50.38, with weekly volatility at 5.16% and ATR at 0.70. The IEA stock’s 52-week price range has touched low of $1.80 and a $24.13 high. The stock traded higher over the last trading session, gaining 2.50% on 06/03/21.

Investors have identified the Engineering & Construction company Infrastructure and Energy Alternatives Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $317.98 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Infrastructure and Energy Alternatives Inc. (IEA) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For IEA, the company has in raw cash 95.17 million on their books with 2.38 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 459.83 million total, with 380.93 million as their total liabilities.

IEA were able to record -57.7 million as free cash flow during the 08/12/2021 quarter of the year, this saw their quarterly net cash flow reduce by -68.87 million. In cash movements, the company had a total of -53.78 million as operating cash flow.

Potential earnings growth for Infrastructure and Energy Alternatives Inc. (IEA)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/12/2021 quarter of the year, Infrastructure and Energy Alternatives Inc. recorded a total of 276.41 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -29.58% coming in sequential stages and their sales for the 08/12/2021 quarter reducing by -41.78%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 259.87 million trying to sell their products during the last quarter, with the result yielding a gross income of 16.54 million. This allows shareholders to hold on to 23.06M with the recently reported earning now reading -0.89 cents per share. This is a figure that compared to analyst’s prediction for their 08/12/2021 (-0.91 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.96 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on IEA sounds very interesting.

Is the stock of IEA attractive?

In related news, Director, Ares Management Corp bought 56,606 shares of the company’s stock in a transaction that recorded on Feb 09. The purchase was performed at an average price of 1000.00, for a total value of 56,606,370. As the purchase deal closes, the Director, ARES MANAGEMENT LLC now bought 56,606 shares of the company’s stock, valued at 56,606,370. Also, Director, OCM FIE, LLC sold 56,606 shares of the company’s stock in a deal that was recorded on Feb 09. The shares were cost at an average price of 1165.51 per share, with a total market value of 65,975,201. Following this completion of disposal, the Director, Oaktree Capital Group, LLC now holds 56,606 shares of the company’s stock, valued at 65,975,201. In the last 6 months, insiders have changed their ownership in shares of company stock by 7.80%.

4 out of 4 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Infrastructure and Energy Alternatives Inc.. 0 analysts has assigned a Sell rating on the IEA stock. The 12-month mean consensus price target for the company’s shares has been set at $17.63.