Badger Infrastructure Solutions (BDGI) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: 1.38%
• Average Volume (3M): 94.61K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.92
• Revenue Growth: 10.97%
• EPS Growth: 24.27%
• Country: CA
• Employees: 2,517
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• Shares Outstanding: 33,740,240
• 10 Day Avg. Volume: 124,835
• 30 Day Avg. Volume: 94,608
• PEG Ratio: 8.10
• Price to Book (P/B): 5.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.79
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 2.32
• 1Y Price Target: $54.22
• Price Target Upside: 1.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: C$57.00 ▲(6.54%Upside)

Badger Infrastructure Solutions scores highly due to strong earnings call performance and solid financial health. Technical indicators suggest bullish momentum, although caution is warranted due to potential overvaluation and overbought conditions. The positive sentiment from recent earnings calls further strengthens the stock's outlook.

Positive Factors

Dividend Increase

The company announced a 4% increase in its quarterly dividend to $0.1875 per share, reflecting a forward yield of approximately 2%.

Financial Performance

Badger delivered 16% year-over-year EBITDA growth, showcasing improved resilience and operating leverage.

Organic Growth

Badger is seen as one of the most compelling organic growth stories in the industrials space, benefiting from the broadening adoption of non-destructive hydrovac excavation.

Negative Factors

Macro Uncertainty

Given some near-term macro uncertainty, a more cautious approach to the shares is being taken.

Scaling Challenges

It could take several years for the company to scale to target levels, while risk from macro factors remains.

Badger Infrastructure Solutions Business Overview & Revenue Model

Company Description

Badger Infrastructure Solutions Ltd. provides non-destructive excavating and related services in Canada and the United States. Its Badger Hydrovac technology uses a pressurized water stream to liquefy the soil cover, which is then removed with a vacuum system and deposited into a storage tank. The company offers daylighting services for visual confirmation of buried lines, directional drilling test holes, sacrificial anode installation, pipeline and utility crossings, and subsurface utility engineering test holes applications; slot trenching services; and service repair pits for gas service tie-in, electric cable fault repair, water main and service repair, and telecom splice applications. It also provides pole and piling holes services for utility, traffic signal, and transmission pole holes, as well as light standard and sign post holes; pole removals; end-bearing, pilot holes for friction, and spread footing piles; and well monitor installations applications. In addition, the company offers debris removal services for frac tank clean-outs, road and box culvert clean-outs, pipe-rammed casing clean-outs, ballast and filter media removal, and inside structures and buildings material removal; pipeline excavation services for pipeline crossing and tie-in, hydro probing, utility conflict, and oil and fuel spill applications; and anode installation, emergency response, and potholing services, as well as designs, engineers, and supplies excavation shoring systems. It serves the aggregate, construction, engineering, industrial, mining, oil and gas, power generation, transportation, and utility industries, as well as railway hydrovac services. As of December 31, 2021, it had a fleet of 1,371 Badger hydrovacs. The company was formerly known as Badger Daylighting Ltd. and changed its name to Badger Infrastructure Solutions Ltd. in May 2021. Badger Infrastructure Solutions Ltd. was founded in 1992 and is headquartered in Calgary, Canada.

How the Company Makes Money

BDGI generates revenue primarily through its hydrovac excavation services, charging clients based on the scope and complexity of each project. Key revenue streams include service contracts with utility companies, municipalities, and industrial clients requiring safe excavation around underground infrastructure. The company may also engage in partnerships or collaborations with firms in related sectors to expand its service offerings and market reach, contributing to its earnings.

Badger Infrastructure Solutions Financial Statement Overview

Summary

Badger Infrastructure Solutions demonstrates solid financial health with robust gross and EBITDA margins. The balance sheet is stable with reasonable leverage, though there's room for improvement in equity levels to reduce financial risk. Strong cash flow and revenue growth further support the company's financial standing.

Income Statement

The company shows a healthy gross profit margin of approximately 29.4% TTM, indicating efficient cost management. Net profit margin is modest at around 6.5% TTM, reflecting stable profitability. Revenue growth is impressive over the years; however, recent growth in TTM is less pronounced. EBITDA margin of 22.8% TTM suggests strong operational efficiency.

Balance Sheet

Debt-to-equity ratio is moderate at 0.95, indicating manageable leverage. Return on Equity (ROE) at 19.4% TTM reflects good profitability relative to equity. Equity ratio of 38.2% shows a stable capital structure, yet slightly below optimal for minimizing risk.

Cash Flow

The company maintains strong operating cash flows, with a high operating cash flow to net income ratio of 2.96 TTM, indicating excellent cash generation. Free cash flow has grown steadily, with a positive growth rate from previous years, demonstrating effective cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	744.95M	906.01M	570.81M	568.75M	558.63M
Gross Profit	218.01M	253.19M	139.15M	119.01M	164.34M
EBITDA	160.75M	152.86M	94.45M	69.29M	114.27M
Net Income	47.87M	55.35M	18.29M	-11.25M	19.41M
Balance Sheet
Total Assets	669.42M	868.21M	533.00M	606.41M	622.88M
Cash, Cash Equivalents and Short-Term Investments	14.62M	11.28M	5.40M	5.25M	17.30M
Total Debt	220.28M	210.92M	165.99M	172.47M	146.94M
Total Liabilities	411.22M	545.16M	310.15M	325.20M	294.37M
Stockholders Equity	258.20M	323.05M	222.85M	281.20M	328.52M
Cash Flow
Free Cash Flow	43.82M	10.01M	1.57M	11.77M	76.66M
Operating Cash Flow	146.28M	161.19M	68.33M	67.37M	139.25M
Investing Cash Flow	-99.37M	-143.94M	-59.95M	-54.13M	-62.96M
Financing Cash Flow	-41.16M	-13.14M	-7.18M	-25.20M	-67.28M

Badger Infrastructure Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDGI, the sentiment is Positive. The current price of 53.5 is above the 20-day moving average (MA) of 49.53, above the 50-day MA of 46.69, and above the 200-day MA of 40.29, indicating a bullish trend. The MACD of 2.14 indicates Negative momentum. The RSI at 74.79 is Negative, neither overbought nor oversold. The STOCH value of 88.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BDGI.

Badger Infrastructure Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDT	79 Outperform	C$1.68B	16.52	26.31%	2.80%	16.14%	27.71%
BDGI	76 Outperform	$1.81B	27.58	19.89%	1.38%	10.97%	24.27%
WJX	73 Outperform	C$504.56M	12.31	8.09%	6.05%	-2.65%	-47.65%
MTL	72 Outperform	C$1.21B	11.26	10.81%	5.95%	3.28%	-14.21%
WTE	69 Neutral	C$1.73B	15.89	15.75%	5.24%	11.00%	13.78%
Sector *	65 Neutral	$10.94B	15.63	5.27%	1.90%	3.14%	-27.13%
ARE	55 Neutral	C$1.26B	―	-9.26%	3.76%	1.70%	-154.73%

Badger Infrastructure Solutions Corporate Events

Badger Infrastructure Solutions to Announce Q2 2025 Financial Results

Badger Infrastructure Solutions Ltd. has announced that it will release its second quarter 2025 financial results on July 30, 2025, after market close, with a conference call scheduled for the following day. This announcement is significant for investors and analysts as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:BDGI) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Badger Infrastructure Solutions stock, see the TSE:BDGI Stock Forecast page.

Badger Infrastructure Solutions Secures Shareholder Approval at 2025 Annual Meeting

Badger Infrastructure Solutions announced that all motions at its 2025 annual shareholders’ meeting were approved, with a significant 82.36% of common shares represented. All ten director nominees were elected, and Deloitte LLP was appointed as the company’s auditor. The approval of executive compensation reflects strong shareholder support, indicating confidence in the company’s strategic direction.

Badger Infrastructure Solutions Reports Strong Q1 2025 Growth

Badger Infrastructure Solutions Ltd. reported a strong start to 2025 with a 7% increase in revenue to $172.6 million and a 16% rise in Adjusted EBITDA compared to the previous year. Despite challenging weather conditions in the southern U.S., the company demonstrated operational resilience and is preparing for further growth in its hydrovac services, planning to expand its fleet by 4% to 7% to meet increasing demand.