Black Diamond (BDI) AI Stock Analysis

• Market Cap: C$1.05B
• Dividend Yield: 0.93%
• Average Volume (3M): 150.52K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.01
• Revenue Growth: 19.27%
• EPS Growth: 47.30%
• Country: CA
• Employees: 507
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.18
• Shares Outstanding: 65,945,000
• 10 Day Avg. Volume: 106,824
• 30 Day Avg. Volume: 150,516
• PEG Ratio: -1.40
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 267.71
• 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: C$17.50
• Price Target Upside: 4.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$17.50 ▲(4.92% Upside)

Black Diamond's strong financial performance and positive earnings call are the most significant factors, indicating robust growth and profitability. However, technical indicators and valuation suggest caution, with a high P/E ratio and neutral market momentum.

Positive Factors

Revenue & Profitability

Very strong TTM revenue growth and healthy gross and net margins indicate the business scales revenue without proportionate margin erosion. This suggests durable demand, pricing power or product mix strength and supports sustainable earnings growth and reinvestment capacity over the medium term.

Balance Sheet Health

A moderate D/E and near-50% equity financing provide a stable capital structure that supports investment and acquisition activity while limiting solvency risk. Reasonable ROE shows effective equity use, giving the company durable financial flexibility for strategic initiatives.

Cash Generation & Capital Allocation

Improving quarterly free cash flow and strong liquidity support sustained dividend increases and disciplined M&A. Reliable cash generation provides a durable funding source for organic capex and strategic acquisitions without excessive reliance on external financing, strengthening long-term growth optionality.

Negative Factors

Declining Free Cash Flow Growth

A notable decline in free cash flow growth and low FCF relative to earnings signal weaker ability to convert profits into distributable cash. Over time this can constrain reinvestment, dividend funding and M&A, making long-term growth and financial flexibility more sensitive to operating shocks.

Rising Total Debt Trend

Although leverage is moderate now, the trend of rising total debt increases interest and refinancing exposure. If growth slows or margins compress, higher debt servicing needs could crowd out capex or dividends and reduce resilience to cyclical downturns over the medium term.

Contract Visibility & Sector Exposure

A decline in contracted rental revenue and exposure to the education sector’s funding cycles reduce forward revenue visibility. Structural reliance on specific customer segments and contractual backlog makes top-line and utilization rates vulnerable to policy or funding shifts, weakening long-term predictability.

Black Diamond Business Overview & Revenue Model

Company Description

Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, custom manufactured modular facilities, and blast resistant structures. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary products and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. company also provides specialized field rentals to oil and gas industries. Black Diamond Group Limited markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. The company was founded in 2003 and is headquartered in Calgary, Canada.

How the Company Makes Money

Black Diamond generates revenue primarily through the sale of its outdoor equipment and apparel, which is distributed through various channels including specialty outdoor retailers, online platforms, and international distributors. The company has established key partnerships with retail chains and e-commerce platforms to expand its market reach. In addition to product sales, BDI also benefits from brand loyalty and a strong community presence within the climbing and skiing industries, which drives repeat purchases and customer engagement. Seasonal demand fluctuations, particularly during peak climbing and skiing seasons, contribute to revenue variations. Furthermore, Black Diamond invests in research and development to continually enhance its product offerings, which can lead to increased sales and market share.

Black Diamond Financial Statement Overview

Summary

Black Diamond demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable, though rising debt levels warrant attention. Cash flow generation is particularly impressive, providing a solid foundation for future investments and debt servicing.

Income Statement

Black Diamond has shown consistent revenue growth, with a TTM growth rate of 2.29%. The company maintains healthy margins, with a gross profit margin of 40.64% and a net profit margin of 6.96% in the TTM. EBIT and EBITDA margins are also strong at 13.60% and 25.33%, respectively. However, there is a slight decline in gross profit margin compared to the previous year, which could indicate rising costs or pricing pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.80, indicating moderate leverage. The return on equity is 9.58%, showing effective use of equity to generate profits. The equity ratio stands at 41.83%, suggesting a balanced capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow performance is robust, with a significant free cash flow growth rate of 304.78% in the TTM. The operating cash flow to net income ratio is 1.30, indicating strong cash generation relative to net income. The free cash flow to net income ratio is lower at 0.07, but this is offset by the substantial growth in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	445.65M	403.00M	393.50M	324.54M	339.55M	179.86M
Gross Profit	190.50M	183.77M	174.45M	138.14M	111.63M	72.21M
EBITDA	118.06M	102.53M	98.81M	84.27M	61.23M	35.83M
Net Income	36.56M	25.65M	30.36M	26.38M	20.36M	-2.39M
Balance Sheet
Total Assets	784.17M	748.55M	647.64M	649.44M	530.34M	511.89M
Cash, Cash Equivalents and Short-Term Investments	9.82M	13.32M	6.51M	8.31M	4.56M	3.68M
Total Debt	235.45M	262.66M	211.74M	249.06M	179.68M	198.56M
Total Liabilities	405.26M	421.50M	353.68M	376.90M	283.54M	285.21M
Stockholders Equity	376.03M	323.19M	290.08M	268.53M	234.46M	212.71M
Cash Flow
Free Cash Flow	29.26M	2.14M	63.91M	16.55M	33.26M	14.06M
Operating Cash Flow	111.98M	111.36M	133.00M	70.79M	71.14M	50.03M
Investing Cash Flow	-83.57M	-112.25M	-68.59M	-101.94M	-33.63M	-109.85M
Financing Cash Flow	-33.63M	7.53M	-65.88M	34.51M	-36.56M	59.04M

Black Diamond Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.68
• 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:BDI, the sentiment is Positive. The current price of 16.68 is above the 20-day moving average (MA) of 15.29, above the 50-day MA of 14.50, and above the 200-day MA of 11.91, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 78.88 is Negative, neither overbought nor oversold. The STOCH value of 83.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BDI.

Black Diamond Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBM	76 Outperform	C$864.03M	11.12	12.33%	5.85%	28.20%	36.95%
MTL	74 Outperform	C$1.60B	15.36	9.33%	5.21%	5.53%	-21.87%
DXT	73 Outperform	C$805.59M	20.21	14.38%	3.02%	-0.73%	221.74%
BDI	69 Neutral	C$1.05B	27.29	10.23%	0.93%	19.27%	47.30%
BDT	69 Neutral	C$1.63B	17.40	21.68%	2.88%	6.26%	0.52%
WJX	69 Neutral	C$619.08M	13.44	8.84%	5.09%	3.71%	-12.70%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Black Diamond Corporate Events

Black Diamond Reports Strong Q3 2025 Results and Boosts Dividend

Black Diamond Group Limited reported a strong third quarter in 2025, with a 9% increase in consolidated rental revenue and a 65% rise in profit compared to the previous year. The company also announced a 29% increase in its quarterly dividend, reflecting its robust financial performance and strategic acquisitions, including the purchase of Royal Camp Services Ltd. and Spencer Group of Companies. These moves are expected to enhance Black Diamond’s market position and provide significant growth opportunities, particularly in Canada and the Asia-Pacific region.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.