Badger Infrastructure Solutions (BDGI) AI Stock Analysis

• Market Cap: $1.53B
• Dividend Yield: 1.58%
• Average Volume (3M): 70.78K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.83
• Revenue Growth: 10.97%
• EPS Growth: 24.27%
• Country: CA
• Employees: 2,517
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• Shares Outstanding: 33,752,240
• 10 Day Avg. Volume: 53,515
• 30 Day Avg. Volume: 70,783
• PEG Ratio: 6.14
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $49.18
• Price Target Upside: 8.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: C$51.00 ▲(12.21%Upside)

Badger Infrastructure Solutions demonstrates robust financial performance and positive market sentiment, supported by strong earnings growth and strategic expansion plans. Technical indicators are favorable, but valuation is moderately high, slightly tempering the outlook.

Positive Factors

Dividends

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 exhibits solid financial health with stable profitability and efficient cash management. The balance sheet shows reasonable leverage, but there is room for improvement in equity levels to reduce financial risk. Overall, the company maintains a robust financial position with opportunities for growth in revenue and profitability.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
756.02M	744.95M	906.01M	570.81M	568.75M	558.63M
	Gross Profit
222.03M	218.01M	253.19M	139.15M	119.01M	164.34M
	EBIT
95.15M	86.06M	82.50M	34.87M	-2.31M	41.16M
	EBITDA
172.10M	160.75M	152.86M	94.45M	69.29M	114.27M
	Net Income Common Stockholders
49.35M	47.87M	55.35M	18.29M	-11.25M	19.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12M	14.62M	11.28M	5.40M	5.25M	17.30M
	Total Assets
664.84M	669.42M	868.21M	533.00M	606.41M	622.88M
	Total Debt
242.07M	220.28M	210.92M	165.99M	172.47M	146.94M
	Net Debt
240.95M	205.66M	202.41M	160.59M	167.23M	129.64M
	Total Liabilities
410.50M	411.22M	545.16M	310.15M	325.20M	294.37M
	Stockholders Equity
254.35M	258.20M	323.05M	222.85M	281.20M	328.52M
Cash Flow		Free Cash Flow
48.65M	43.82M	10.01M	1.57M	11.77M	76.66M
	Operating Cash Flow
146.28M	146.28M	161.19M	68.33M	67.37M	139.25M
	Investing Cash Flow
-94.61M	-99.37M	-143.94M	-59.95M	-54.13M	-62.96M
	Financing Cash Flow
-59.35M	-41.16M	-13.14M	-7.18M	-25.20M	-67.28M

Badger Infrastructure Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 45.45 is above the 20-day moving average (MA) of 44.82, above the 50-day MA of 40.73, and above the 200-day MA of 38.70, indicating a bullish trend. The MACD of 1.21 indicates Positive momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 60.69 is Neutral, 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	81 Outperform	C$1.51B	15.02	26.31%	2.48%	16.14%	27.71%
MTL	79 Outperform	C$1.23B	11.39	10.81%	5.72%	3.28%	-14.21%
BDGI	74 Outperform	$1.53B	22.92	19.89%	1.58%	10.97%	24.27%
WJX	73 Outperform	C$487.25M	11.91	8.09%	6.22%	-2.65%	-47.65%
WTE	73 Outperform	C$1.72B	15.24	15.75%	5.47%	11.00%	13.78%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
ARE	55 Neutral	C$1.19B	―	-9.26%	3.98%	1.70%	-154.73%

Badger Infrastructure Solutions Corporate Events

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.

Badger Infrastructure Solutions Announces Q1 2025 Results Release and Annual Meeting Details

Badger Infrastructure Solutions Ltd. has announced the release date for its Q1 2025 financial results, which will be available on April 29, 2025, followed by a conference call on April 30, 2025. Additionally, the company has filed its Management Information Circular for the 2025 Annual Meeting of Shareholders, scheduled for April 30, 2025, where shareholders can participate virtually. These announcements are significant for stakeholders as they provide insights into the company’s financial performance and strategic direction.