$IESC (+0,17%) (no investment recommendation as I am invested myself)
A question of love @Multibagger has inspired me to present IES Holding to you once again.
He asked me whether it makes sense to invest in a company that is largely dependent on the development of AI infrastructure. This is where IES Holding comes into play, as its diversification reduces dependency enormously.
With the targeted acquisitions, IESC is diversifying its portfolio at both supply and customer level, creating resilience and stability in all market phases. The year 2024 serves as proof: while the Residential segment recorded a 6% slump in sales (the share of sales was 50%), the other segments grew by 18% to 63%, resulting in overall growth of 18%.
IES is also gaining market share in many business areas with increasing margins. A comparison with the strongest competitors also underpins the pricing power. Sales have increased by 27 percent in the last 2 quarters (competition 12 to 21 percent. Added to this is an impressive margin expansion from the low single-digit range to 13 percent today. This margin is not only industry-leading, but has not yet ended.
😘
My dears, I love these small companies in which the founder holds the majority of shares. And therefore still looks after his "baby".
A key success factor for small companies in particular is strong management with "skin in the game". Together with his brother, founder and former CEO Jeffrey Gendell holds around 55% of the outstanding shares via the jointly managed investment company Tontine. Jeffrey Gendell gained experience in his early years at companies with a focus on capital markets, corporate finance, mergers and acquisitions.
My dears, 😘
I continue to love these quality companies that have grown steadily over the years and have proven that they know their business.
As you can see at ⬇️Link Traderfox Scoring. Here IES scores 1️⃣3️⃣ for quality. And for growth even with 1️⃣5️⃣
It is well known that high returns on capital lead to high share price returns. Over the years, IESC has achieved industry-leading returns on capital of 15 to 30 percent. Even established competitors such as EMCOR, MasTec or Quanta Services cannot keep pace with these values.
The foundation for this success is based on a well-regulated internal structure and outstanding management. With now 16 company acquisitions in 4 end markets, IESC combines organic growth with strategic acquisitions. This has resulted in a five-fold increase in turnover over the last 10 years.
While the CEO concentrates on capital allocation and strategic investments, the individual divisions operate independently in line with the common goals. Another advantage of the decentralized structure is that the positive experiences of individual divisions are transferred to others in order to become more successful together.
My dears, you can find the great full company presentation at the following link ⬇️
⬇️ Traderfox Scoring
https://aktie.traderfox.com/visualizations/US44951W1062/DI/ies-holdings-inc
