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BrightView Holdings (BV)
NYSE:BV

BrightView Holdings (BV) AI Stock Analysis

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BV

BrightView Holdings

(NYSE:BV)

Rating:68Neutral
Price Target:
$16.50
▲(5.10%Upside)
BrightView Holdings' overall score is driven by strong earnings call performance, highlighting record EBITDA and strategic initiatives. However, valuation concerns and mixed technical indicators limit the upside potential. Financial stability is supported by a robust balance sheet, but profitability and cash flow efficiency remain areas for improvement.
Positive Factors
Earnings
Shares ended the day up 8% following a strong second-quarter beat and raised outlook on both EBITDA and free cash flow for the full year.
Employee Retention
Employee retention rates have improved, and turnover has decreased, indicating positive internal developments.
Stock Repurchase
Brightview Holdings authorized a $100M stock repurchase, signaling confidence in the company's valuation and future prospects.
Negative Factors
Discretionary Business Impact
About 10% of the business is more discretionary and could take a step back in the face of a more difficult macro environment.
Macro Uncertainty
Macro uncertainty is causing some maintenance customers to reduce discretionary spend and project delays within the development business.
Revenue Outlook
Management chose to leave its revenue outlook unchanged due to elevated macro uncertainty, which could impact enhancement-related work.

BrightView Holdings (BV) vs. SPDR S&P 500 ETF (SPY)

BrightView Holdings Business Overview & Revenue Model

Company DescriptionBrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 13,000 office parks and corporate campuses, 8,000 residential communities, and 450 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.
How the Company Makes MoneyBrightView Holdings makes money primarily through its landscape maintenance and development services. The company's revenue streams include recurring contracts for landscape maintenance, which involve tasks such as mowing, pruning, irrigation management, and pest control, ensuring steady cash flow. Additionally, BrightView generates revenue from landscape development projects, which encompass design and installation services for new landscapes and outdoor spaces. Significant factors contributing to its earnings include long-term contracts with commercial clients and strategic acquisitions that expand its market presence and capabilities. The company also benefits from seasonal services like snow and ice removal, which provide additional revenue during winter months.

BrightView Holdings Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q2-2025)
|
% Change Since: 7.98%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, record-breaking EBITDA, and successful strategic initiatives like share repurchase and employee retention programs. However, concerns about macroeconomic uncertainties and their potential impact on customer behavior and revenue were noted.
Q2-2025 Updates
Positive Updates
Record-Breaking EBITDA and Margin Growth
The company reported record Q2 adjusted EBITDA of $73.5 million, a 13% increase from the previous year, with margins expanding by 150 basis points to 11.1%.
Improved Employee Metrics
Frontline turnover improved significantly, demonstrating the success of reinvestment in employee programs like paid time off and fleet refreshment.
Successful Share Repurchase Program
The company launched a $100 million share repurchase program, indicating strong balance sheet management and confidence in undervalued share prices.
Strong Development Segment Performance
Development segment achieved a record Q2 adjusted EBITDA of $17.1 million, with margin expansion of 410 basis points due to backlog conversion and operational efficiencies.
Raised Full-Year Guidance
Guidance for adjusted EBITDA increased to $355 million, with expected margin improvement in both maintenance and development segments.
Negative Updates
Macroeconomic Uncertainty Impact
Customer hesitation and potential delays in discretionary spending due to macroeconomic uncertainties, including tariffs and inflationary pressures.
Impact of Snow on Core Land Revenue
Increased snowfall reduced land revenue by about 2%, impacting the ability to execute core land activities during the quarter.
Company Guidance
During BrightView's fiscal 2025 Q2 earnings call, the company reported record adjusted EBITDA for both the quarter and year-to-date, leading to an increase in their full-year guidance for adjusted EBITDA, margins, and free cash flow. The company highlighted a 170 basis point improvement in customer retention on a trailing 12-month basis, driven by enhanced employee engagement and reduced frontline turnover. BrightView's total revenue for the quarter was $663 million, a 3% increase when adjusted for the disposal of non-core assets. The snow segment saw a $22 million increase in core revenue, while the development segment's revenue rose by 5%. Adjusted EBITDA for Q2 reached $73.5 million, up 13% year-over-year, with the maintenance segment's margins expanding by 60 basis points and development margins by 410 basis points. BrightView also reported strong adjusted free cash flow of $67 million for the first half, despite increased capital expenditures on fleet and equipment, resulting in a net leverage of 2.1x, down from 2.4x in the prior year.

BrightView Holdings Financial Statement Overview

Summary
BrightView Holdings demonstrates stable financial health with potential areas for growth and improvement. The company's profitability margins are moderate, and there is a slight decline in revenue growth. Financial leverage is well-managed, and the balance sheet is robust with a healthy equity position. Cash flow generation shows some challenges, but operational cash generation remains strong. Continued focus on improving profitability and cash flow efficiency could enhance future financial performance.
Income Statement
70
Positive
The income statement for BrightView Holdings shows moderate performance. The TTM Gross Profit Margin is approximately 23.22%, indicating efficient cost management. However, the Net Profit Margin stands at 1.65%, reflecting challenges in converting revenue to profit, despite a slight increase from previous periods. Revenue has declined by 1.36% from the previous year, which could be a concern for growth trajectory. The EBIT and EBITDA margins are 4.49% and 10.19% respectively, suggesting reasonable operational efficiency but potential room for improvement in profitability.
Balance Sheet
75
Positive
BrightView's balance sheet indicates solid financial stability. The Debt-to-Equity Ratio is 0.50, showing a balanced leverage position. Return on Equity (ROE) is 2.55%, which is modest and indicates room for enhancing shareholder returns. The Equity Ratio is 53.19%, highlighting a strong equity base relative to total assets, which provides a cushion against liabilities.
Cash Flow
68
Positive
The cash flow statement reveals a mixed picture. Free Cash Flow has decreased by 23.45% year-over-year, indicating potential challenges in cash generation. The Operating Cash Flow to Net Income Ratio is 5.44, suggesting strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio of 2.16 shows decreasing efficiency in generating free cash flow from net income.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue2.73B2.77B2.82B2.77B2.55B2.35B
Gross Profit634.00M645.60M678.90M674.80M650.80M595.30M
EBITDA278.00M314.20M259.20M222.80M230.20M149.70M
Net Income45.10M66.40M-7.70M14.00M46.30M-41.60M
Balance Sheet
Total Assets3.32B3.39B3.35B3.31B3.24B3.07B
Cash, Cash Equivalents and Short-Term Investments141.30M140.40M67.00M20.10M123.70M157.10M
Total Debt880.80M927.00M980.50M1.43B1.22B1.21B
Total Liabilities1.56B1.61B1.61B2.09B1.89B1.80B
Stockholders Equity1.77B1.78B1.74B1.22B1.34B1.27B
Cash Flow
Free Cash Flow97.40M127.20M58.60M-400.00K87.20M192.40M
Operating Cash Flow245.40M205.60M129.90M106.90M148.40M245.10M
Investing Cash Flow-121.30M-5.60M-61.40M-193.70M-158.70M-108.80M
Financing Cash Flow-162.50M-126.60M-21.60M-16.80M-23.10M-18.30M

BrightView Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.70
Price Trends
50DMA
15.60
Positive
100DMA
14.43
Positive
200DMA
15.35
Positive
Market Momentum
MACD
0.10
Positive
RSI
48.10
Neutral
STOCH
59.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BV, the sentiment is Neutral. The current price of 15.7 is below the 20-day moving average (MA) of 16.04, above the 50-day MA of 15.60, and above the 200-day MA of 15.35, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.10 is Neutral, neither overbought nor oversold. The STOCH value of 59.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BV.

BrightView Holdings Risk Analysis

BrightView Holdings disclosed 47 risk factors in its most recent earnings report. BrightView Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

BrightView Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
RTRTO
75
Outperform
$12.06B30.997.44%3.17%3.96%-17.48%
71
Outperform
$11.21B32.9311.77%0.98%-3.47%-45.03%
UNUNF
70
Outperform
$3.12B21.497.15%0.80%4.17%18.93%
BVBV
68
Neutral
$1.50B85.782.56%-2.85%-108.99%
65
Neutral
$10.77B15.805.51%1.90%3.03%-26.66%
ABABM
61
Neutral
$2.98B38.374.30%2.21%3.52%-67.27%
FAFA
55
Neutral
$2.98B549.40-13.59%37.97%-499.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BV
BrightView Holdings
15.70
2.96
23.23%
ABM
ABM Industries
47.93
-0.67
-1.38%
UNF
UniFirst
175.01
7.05
4.20%
ARMK
ARAMARK Holdings
42.79
10.06
30.74%
RTO
Rentokil Initial
24.11
-5.66
-19.01%
FA
First Advantage
17.16
1.13
7.05%

BrightView Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures
BrightView Holdings Updates 2025 Financial Guidance
Neutral
Jul 1, 2025

On July 1, 2025, BrightView Holdings updated its financial guidance for fiscal year 2025, adjusting its revenue expectations downward due to macro-economic factors affecting project timing and discretionary spending. Despite these challenges, the company anticipates record Adjusted EBITDA and margin performance, with an improved outlook on Adjusted Free Cash Flow, as it continues to execute its One BrightView strategy and aims for long-term growth and shareholder value.

The most recent analyst rating on (BV) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on BrightView Holdings stock, see the BV Stock Forecast page.

Private Placements and Financing
BrightView Holdings Completes Underwritten Stock Offering
Neutral
Jun 6, 2025

On June 4, 2025, BrightView Holdings, Inc. entered into an Underwriting Agreement for an underwritten offering of 11,600,000 shares of its common stock. The offering was completed on June 6, 2025, with the shares sold at $14.40 each, but the company did not receive any proceeds from this transaction.

The most recent analyst rating on (BV) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on BrightView Holdings stock, see the BV Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025