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Medford Engineering

Medford, OR · NAICS 541330 Engineering Services

Tax year 2026
Prepared by Omar Okafor
Medford, OR office
Section 1

Executive Summary

Medford Engineering generated $5,281,000 of revenue in 2026 with 24 employees, producing an EBITDA margin of 17.3% against a peer median of 20.5%. Compared with 140 similar businesses, performance is strongest in liquidity and warrants examination in asset efficiency. Total benchmark variance across all categories is $587K.

Section 2

Company Snapshot

Revenue
$5.28M
Employees
24
Entity type
Sole Proprietorship
Years in business
16
Gross margin
88.7%
EBITDA margin
17.3%
Net margin
11.8%
Effective tax rate
18.6%
Section 3

Peer Group Definition

140 businessesNAICS 541330 — Engineering ServicesORRevenue $2.6M–$8.4M12–34 employeesTax year 2026

Comparison sample size 140; NAICS 541330; revenue range $2.60M$8.40M; geographic filter OR. Data availability for this client: 80% coverage across tax return, financial statements, payroll and employee records.

Section 4

Financial Performance

Line item (% revenue)CompanyPeer medianTop 25%
Revenue100.0%100.0%100.0%
Cost of Goods Sold11.3%14.2%12.8%
Gross Profit88.7%85.8%87.2%
Payroll48.2%43.2%37.2%
Benefits7.4%7.0%6.1%
Occupancy3.9%4.0%3.6%
Marketing1.7%1.3%1.5%
Insurance1.5%1.9%1.7%
Professional Fees1.5%1.6%1.4%
Administrative & Other5.3%4.9%4.3%
EBITDA17.3%20.5%26.3%
Depreciation2.2%1.8%1.6%
Interest0.6%0.8%0.7%
Net Income11.8%14.3%18.7%
Section 5

Profitability and Operational Efficiency

Growth
61st
Profitability
59th
Labor Efficiency
35th
Operating Efficiency
68th
Liquidity
90th
Leverage
79th
Tax Efficiency
61st
Asset Efficiency
28th
Section 6

Balance Sheet

Current Ratio
7.76
median 5.68
Quick Ratio
7.76
median 5.68
Debt / EBITDA
0.52
median 0.55
Debt / Equity
0.24
median 0.43
Days Sales Outstanding
73.16
median 59.72
Asset Turnover
1.97
median 2.44
Section 7

Tax Overview

Federal tax
$111,029
State tax
$31,316
Effective rate
18.6%
Section 179
$49,647
Owner compensation
$541,942
Owner distributions
$367,725
Retirement
$94,127
Capital expenditures
$143,101
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$4.11M-1.3%88.2%19.1%53.3%
2023$4.08M-0.7%88.2%19.3%53.0%
2024$4.34M+6.4%88.5%18.2%54.5%
2025$4.85M+11.7%88.8%17.1%55.9%
2026$5.28M+8.9%88.7%17.3%55.6%
Section 9

Opportunities for Discussion

  • Operating Expense Load. Operating expenses run 71.4% of revenue versus a peer median of 65.5%. Which expense categories account for the difference?Benchmark variance $312K
  • Payroll Efficiency. Total labor cost represents 55.6% of revenue against a peer median of 50.4%. Is the staffing model carrying capacity for growth, or absorbing margin?Benchmark variance $275K
  • Revenue per Employee. Revenue per employee of $220K compares with a peer median of $219K. Is productivity constrained by capacity, mix, or pricing?
  • Leverage Profile. Debt to EBITDA of 0.52x compares with a peer median of 0.55x. Does the capital structure match the asset base and cash cycle?
  • Owner Compensation Structure. Owner compensation represents 10.3% of revenue compared with a 9.2% median for comparable entities. Should compensation strategy be reviewed with the tax team?
  • Gross Margin Variance. Gross margin of 88.7% compares with a peer median of 85.8%. Where are direct costs and pricing diverging from comparable businesses?
  • Working Capital Position. Current ratio of 7.76 compares with an industry median of 5.68. How much liquidity headroom does the business need through its cycle?
Section 10

Advisor Notes

Section 11

Methodology

Sorren Benchmark aggregates anonymized financial, tax, payroll and operational data across 60,000 businesses. Peer statistics report count, mean, median, 10th, 25th, 75th and 90th percentiles and standard deviation. Comparisons use normalized ratios rather than raw dollars. Statistics are released only where a cohort contains at least 10 businesses, and individual peer companies are never displayed. Benchmark variance expresses the mathematical difference between this company and its peer median; it is not a projection of savings, nor tax or investment advice.