IES Holdings (NASDAQ: $IESC) is a little known small-cap stock that is returning big profits to shareholders.
The Houston, Texas-based company designs and installs integrated electrical and %Technology systems for data centres and other industrial facilities across the U.S. It also provides electricity to some residential housing communities.
Not surprising, the company’s data centre business is booming, powering the company’s financial results and stock to new heights.
So far this year, IES Holdings stock has risen 243% to trade at $265.60 U.S. per share. Over the last five years, the share price is up an astounding 1,185%.
Yet with all the growth, IES Holdings has a market capitalization of only $5.31 billion U.S. The stock currently trades at 28 times future earnings estimates.
That’s inline with the average price-to-earnings (P/E) ratio of stocks listed on the benchmark S&P 500 index.
IES Holdings currently has more than 8,000 employees. A going concern since 1997, it has been growing in recent years through a combination of acquisitions and new clients.
Many of the new clients are in the data centre space, where demand for electricity is booming and growing stronger.
A dozen years ago, IES Holdings stock was trading for less than $2 U.S. a share. Today, it is above $265 U.S. Yet despite the success, no analysts cover the company or its stock.