Company Overview
ICF International, Inc. operates as a provider of management, technology, and policy consulting and implementation services tailored to government and commercial clients both within the United States and internationally. The company functions within the Industrials sector, specifically the Consulting Services industry, where its role involves delivering strategic expertise and technological solutions across various operational domains. ICF International, Inc. demonstrates a significant market presence with a market capitalization of $1.19B, generating annual revenue of $1.87B, and employing a workforce of 6,972 individuals. These financial figures indicate that the company holds a substantial position in its sector, supported by a broad operational scale that allows it to serve a diverse client base across multiple jurisdictions and policy areas.
Financial Health
The company reported a trailing twelve-month revenue of $1.87B, with net income of $91.59M and EBITDA of $203.61M, revealing a cost structure where operating expenses and taxes consume a significant portion of total revenue. Free cash flow stands at $64.20M, which suggests the company maintains a moderate level of financial flexibility to fund operations or potential strategic initiatives despite cash reserves of only $5.30M. Analysis of the margins shows a gross margin of 37.2%, an operating margin of 6.5%, and a profit margin of 4.9%, indicating that while revenue generation is robust, the final profitability is compressed by substantial overhead costs. The balance sheet reflects a leveraged position with total debt of $573.40M compared to cash of $5.30M, and a debt-to-equity ratio of 55.75, suggesting the company relies heavily on borrowed capital relative to its equity base. Liquidity is assessed as moderate with a current ratio of 1.27, meaning the company possesses 1.27 times the current assets necessary to cover its short-term liabilities. Return on equity is 9.1% and return on assets is 4.4%, metrics that reveal management's effectiveness in generating returns relative to the shareholders' investment and the total asset base, respectively.
Valuation Assessment
The stock trades at a trailing P/E ratio of 13.08 and a forward P/E of 8.46, implying that the market expects earnings to recover or grow significantly in the future to justify the lower forward multiple. The price-to-book ratio is 1.15, indicating that the market values the company's equity at a slight premium over its book value, reflecting confidence in intangible assets like intellectual property and brand reputation. Alternative valuation metrics include a price-to-sales ratio of 0.64 and an EV/EBITDA of 8.60, which suggest the company is priced conservatively relative to its sales and earnings power compared to high-growth peers. Regarding price volatility, the 52-week high is $101.71 and the 52-week low is $64.34, meaning the current price sits somewhere within this historical range depending on the specific trading day. The beta value is 0.43, which indicates that the stock's price movements are less volatile than the broader market, offering a profile that may appeal to investors seeking lower correlation with general market swings.
Growth & Income
Recent performance data shows revenue growth of -10.6% and earnings growth of -27.4% year over year, indicating that earnings are contracting at a much faster rate than revenue, which implies declining profitability per unit of sales. As a dividend payer, the company offers a dividend yield of 0.9% with a payout ratio of 11.3%, suggesting the dividend is highly sustainable given that it consumes a small fraction of the earnings. The low payout ratio allows the company to retain the majority of its earnings for reinvestment, debt reduction, or operational improvements rather than distributing them to shareholders. Overall, the growth and income profile reflects a company currently navigating a contraction in earnings and revenue while maintaining a conservative dividend policy to preserve capital for future stabilization.