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Black Diamond Group (TSE:BDI)
TSX:BDI

Black Diamond (BDI) AI Stock Analysis

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Black Diamond

(TSX:BDI)

Rating:78Outperform
Price Target:
C$11.50
▲(12.20%Upside)
Black Diamond Group's strong financial performance and technical indicators, along with positive earnings call insights and corporate events, contribute to an above-average stock score. Its high P/E ratio suggests some valuation concerns, but robust growth metrics and strategic initiatives support a positive outlook.
Positive Factors
Dividend Increase
BDI increased its quarterly dividend by 17%, indicating strong financial health and a commitment to returning value to shareholders.
Market Position
BDI trades toward the bottom end of its peers' range, suggesting potential for valuation growth.
Revenue Growth
BDI's rental platform, Modular Space Solutions, reported record revenue driven by increased average rental rates and ongoing fleet growth.
Negative Factors
EBITDA Margins
Workforce Solutions segment experienced a decline in EBITDA margins, which were down approximately 500 basis points quarter over quarter.
Project Delays
Slower WFS project ramp-up to weigh on near-term rental revenues.

Black Diamond (BDI) vs. iShares MSCI Canada ETF (EWC)

Black Diamond Business Overview & Revenue Model

Company DescriptionBlack 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 MoneyBlack Diamond makes money primarily through the sale of its high-performance gear and apparel. Its revenue streams include direct-to-consumer sales via its website and retail locations, as well as wholesale distribution partnerships with a global network of specialty outdoor retailers. The company benefits from strategic partnerships and sponsorships within the outdoor and sports communities, enhancing its brand visibility and market reach. Additionally, Black Diamond invests in research and development to continuously innovate its product lines, ensuring a competitive edge in the market.

Black Diamond Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 27.17%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant profit increases and record revenue and EBITDA. The company demonstrated resilience in its core business segments, especially in MSS, and maintained a strong balance sheet. Although there were some challenges, such as a decline in WFS rental revenue and slower growth in LodgeLink, the company's overall performance and future outlook remained positive.
Q1-2025 Updates
Positive Updates
Significant Profit Increase
First quarter profit increased by 287% to $5.8 million, and basic earnings per share increased by 400% to $0.10.
Record Revenue and EBITDA
Consolidated revenue reached $102.2 million, up 39%, and consolidated adjusted EBITDA was $26.5 million, up 37% from the comparative quarter, marking a nine-year record high.
Rental Revenue Growth
Rental revenue of $37.8 million increased 8% from the comparative quarter, with contracted future rental revenue at $161.6 million, up 18%.
Strong Capital Expenditure
Total capital expenditures were $17.2 million, with total capital commitments of $47.9 million, a 22% increase from the comparative quarter.
Improved Return on Assets
Return on Assets improved by 310 basis points from the comparative quarter to 17.4%.
MSS Segment Performance
Rental revenue grew by 19% to $25.5 million, and sales revenue increased by 77% to $11.5 million from the comparative quarter.
Strong Balance Sheet
Long-term debt and net debt decreased by 3% sequentially from Q4 2024, with a net debt to trailing 12-month adjusted leveraged EBITDA ratio of 1.8 times.
Successful ERP Implementation
The ERP implementation is progressing on schedule and on budget, with $3 million invested to date and approximately $8.9 million remaining.
Negative Updates
WFS Segment Revenue Decline
WFS rental revenue was down modestly by 10% to $12.3 million, although offset by increases in sales and lodge services revenues.
LodgeLink Revenue Growth Slowdown
LodgeLink's net revenue increased only 4% from the comparative quarter, with some softness attributed to lighter volumes in certain end market verticals.
Australia Utilization Below Expectations
Utilization in Australia was below expectations at 67.2%, primarily due to project timing issues on the customer side.
Company Guidance
During the first quarter of 2025, Black Diamond Group reported a significant financial and operational performance, with key metrics illustrating robust growth. The company achieved a 287% increase in profit to $5.8 million, while basic earnings per share rose by 400% to $0.10. Consolidated revenue reached $102.2 million, marking a 39% year-over-year increase, and consolidated adjusted EBITDA grew by 37% to $26.5 million, a nine-year high. Rental revenue was a core driver, growing by 8% to $37.8 million, with contracted future rental revenue rising by 18% to $161.6 million. Capital expenditures amounted to $17.2 million, with commitments of $47.9 million, reflecting a 22% increase from the previous year. Additionally, Black Diamond's Return On Assets (ROA) improved by 310 basis points to 17.4%. Despite macroeconomic uncertainties, the company maintained a healthy financial position with a net debt to trailing 12-month adjusted leveraged EBITDA ratio of 1.8 times, and $207.1 million in available liquidity. These metrics underscore Black Diamond's effective growth strategies, strong cash flow generation, and stable balance sheet, positioning it well for future growth amidst economic challenges.

Black Diamond Financial Statement Overview

Summary
Black Diamond exhibits robust financial performance with strong revenue growth and efficient operations. The balance sheet reflects a solid equity position, albeit with increased leverage. Cash flow management is commendable, ensuring liquidity amidst growth investments. The company is well-positioned for future expansion, although managing debt levels will be crucial to sustain long-term stability.
Income Statement
75
Positive
The company demonstrates a solid revenue growth trajectory with a notable increase in revenue from $324.5M in 2022 to $431.6M TTM, representing a strong growth rate. Gross profit margin remains healthy at approximately 40.6% TTM, indicating efficient cost management. However, there is a slight decline in gross profit compared to the previous year, potentially impacting future profitability. Net profit margin is stable at around 7%, supported by consistent EBIT and EBITDA margins, illustrating sound operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.8, suggesting manageable leverage. Stockholders' equity grew steadily, enhancing the equity ratio to about 42.9% TTM, indicating a strong capital structure. However, total debt has increased to $257.6M, which could pose risks if cash flows fluctuate. The company's assets also increased, supporting its growth strategy.
Cash Flow
80
Positive
The company shows strong cash flow management with significant operating cash flow of $116.9M TTM, covering its capital expenditures. Free cash flow growth is remarkable, moving from $2.1M in 2024 to $8.5M TTM, indicating improving liquidity. The operating cash flow to net income ratio is robust, suggesting effective conversion of earnings into cash. However, the high capital expenditure might pressure future free cash flow unless revenue growth continues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue431.62M403.00M393.50M324.54M339.55M179.86M
Gross Profit175.41M183.77M174.45M138.14M111.63M72.21M
EBITDA109.33M102.53M98.81M84.27M61.23M35.83M
Net Income30.02M25.65M30.36M26.38M20.36M-2.39M
Balance Sheet
Total Assets753.26M748.55M647.64M649.44M530.34M511.89M
Cash, Cash Equivalents and Short-Term Investments12.72M13.32M6.51M8.31M4.56M3.68M
Total Debt257.57M262.66M211.74M249.06M179.68M198.56M
Total Liabilities426.37M421.50M353.68M376.90M283.54M285.21M
Stockholders Equity323.28M323.19M290.08M268.53M234.46M212.71M
Cash Flow
Free Cash Flow8.51M2.14M63.91M16.55M33.26M14.06M
Operating Cash Flow116.85M111.36M133.00M70.79M71.14M50.03M
Investing Cash Flow-113.36M-112.25M-68.59M-101.94M-33.63M-109.85M
Financing Cash Flow-3.17M7.53M-65.88M34.51M-36.56M59.04M

Black Diamond Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.25
Price Trends
50DMA
9.43
Positive
100DMA
8.92
Positive
200DMA
8.99
Positive
Market Momentum
MACD
0.24
Negative
RSI
69.49
Neutral
STOCH
88.71
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 10.25 is above the 20-day moving average (MA) of 9.76, above the 50-day MA of 9.43, and above the 200-day MA of 8.99, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 69.49 is Neutral, neither overbought nor oversold. The STOCH value of 88.71 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSBDI
78
Outperform
C$636.28M20.899.73%1.36%11.92%7.99%
TSDIV
74
Outperform
C$505.70M19.959.37%7.67%10.66%-27.12%
TSWJX
73
Outperform
C$505.21M12.328.09%6.00%-2.65%-47.65%
TSDXT
72
Outperform
C$580.73M18.4815.03%3.75%-10.24%-23.79%
TSAFN
70
Outperform
C$797.28M26.96-12.61%1.41%-7.86%-171.51%
63
Neutral
kr59.42B13.291.88%8.08%0.78%-4.41%
TSCHR
59
Neutral
C$574.93M-0.09%-17.58%-703.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BDI
Black Diamond
10.30
1.96
23.50%
TSE:AFN
Ag Growth International
43.31
-8.13
-15.80%
TSE:CHR
Chorus Aviation
22.40
4.76
26.98%
TSE:DIV
Diversified Royalty Corp
3.27
0.75
29.76%
TSE:DXT
Dexterra Group
9.39
4.39
87.80%
TSE:WJX
Wajax Corporation
23.09
-0.61
-2.57%

Black Diamond Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Black Diamond Files Final Prospectus for $36.85 Million Public Offering
Positive
Jul 10, 2025

Black Diamond Group Limited has filed a final short form prospectus for a $36.85 million public offering of common shares in Canada, excluding Québec. This move, led by Raymond James Ltd., is part of the company’s strategy to strengthen its financial position and expand its market presence. The offering is not registered under U.S. securities laws and is not available for sale in the United States. This development is expected to enhance Black Diamond’s operational capabilities and industry positioning, potentially benefiting stakeholders by increasing the company’s capacity to serve its diverse customer base across various sectors.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Financial Disclosures
Black Diamond Group Sets Date for Q2 2025 Earnings Release and Call
Neutral
Jul 8, 2025

Black Diamond Group Limited announced the schedule for its second quarter 2025 financial results release and conference call. The company will release its earnings after markets close on August 7, 2025, followed by a conference call on August 8, 2025, where CEO Trevor Haynes and CFO Toby LaBrie will discuss the results. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Black Diamond Announces $36.85 Million Public Offering to Boost Growth
Positive
Jun 25, 2025

Black Diamond Group Limited has announced a $36.85 million bought deal public offering of common shares, with Raymond James Ltd. as the lead underwriter. The proceeds from this offering will be used for capital expenditures, strategic acquisitions, organic growth initiatives, debt reduction, and general corporate purposes. The offering is expected to close by July 16, 2025, subject to necessary approvals. This move is poised to strengthen Black Diamond’s financial position and support its growth strategies across its operating regions.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Business Operations and Strategy
Black Diamond Releases 2025 Corporate Responsibility Report Highlighting ESG Commitment
Positive
May 30, 2025

Black Diamond Group Limited has released its 2025 Corporate Responsibility Report, emphasizing its commitment to environmental, social, and governance matters. The report highlights the company’s progress in emissions reduction, safety, and community investment, showcasing its values-based culture and commitment to continuous improvement. Black Diamond’s strategic focus on corporate responsibility is designed to drive growth, profitability, and value for stakeholders, aligning with industry standards and enhancing its market position.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Black Diamond Group Secures Strong Shareholder Support at 2025 Annual Meeting
Positive
May 13, 2025

Black Diamond Group Limited announced the successful approval of all resolutions at its 2025 Annual Meeting, with a significant shareholder turnout of approximately 65.64%. The meeting saw the election of directors and the appointment of Ernst & Young LLP as auditors, reflecting strong shareholder support and confidence in the company’s governance. This development is likely to bolster Black Diamond’s operational stability and enhance its positioning in the specialty rentals and industrial services industry.

The most recent analyst rating on (TSE:BDI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Black Diamond stock, see the TSE:BDI Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
Black Diamond Group Reports Strong Q1 2025 Results and Declares Dividend
Positive
May 1, 2025

Black Diamond Group Limited reported a significant increase in its first quarter 2025 financial results, with a 287% rise in profit and a 400% increase in basic earnings per share compared to the previous year. The company saw substantial growth in both its Modular Space Solutions (MSS) and Workforce Solutions (WFS) segments, with MSS achieving a record rental revenue and WFS revenue increasing by 45%. The company also expanded its credit facility and reduced long-term debt, positioning itself for continued growth and value creation.

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 10, 2025