When Adam Thalhimer, director of research at Richmond, Virginia-based investment advisor Thompson Davis & Co., evaluates the financial health of a public construction firm, earnings is always his first consideration.
But backlog isn’t too far behind. In fact, Thalhimer said it is in his top three considerations of a public company’s health. “Some projects are less than a year,” he said. “Some projects are longer than a year, but I think something like 90% of backlog can be translated to revenue in the next four quarters.”
