Thursday, August 9, 2007

Integrated Electrical Services Inc.

Integrated Electrical Services Inc. is a NASDAQ listed security that has been trading in a range between $12.00 and $36.72 over the past year. With 15,354,350 shares outstanding, a recent price of $23.29 gives a total market capitalization of $377,717,016. While there are certainly larger companies, Integrated Electrical Services Inc. has definitely earned its place in the pack. Last year, Integrated Electrical Services Inc. created $1.87 in earnings for every share outstanding.

Integrated Electrical Services Inc. is currently priced by the market at 5.70 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share in excess of $1 a share, Integrated Electrical Services Inc. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

0 comments: