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Boyd Group Services (TSE:BYD)
TSX:BYD
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Boyd Group Services
(TSX:BYD)
56Neutral
Positive Factors
Analyst Recommendation
Analyst recommends a BUY rating with a target of C$160.00.
Market Valuation
Market is undervaluing undeveloped Montney inventory.
Negative Factors
Claims Volume
Management continues to sound cautious around near-term claims volume given consumer/macro headwinds.
Hurricane Impact
Boyd's financial performance may be affected by increased total write-offs related to vehicles subject to water damage from the hurricanes.
Store Closures
Potential store closures due to Hurricane Milton could lead to a loss of sales, incremental expenses, and potentially increased capital expenditures.
Boyd Group Services (BYD) vs. S&P 500 (SPY)
Market Cap
$4.40B
Dividend Yield0.3%
Average Volume (3M)64.14K
Price to Earnings (P/E)130.8
Beta (1Y)0.33
Revenue Growth5.76%
EPS Growth-71.36%
CountryCA
Employees13,449
SectorConsumer Cyclical
Sector Strength55
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)1.56
Shares Outstanding21,467,808
10 Day Avg. Volume63,538
30 Day Avg. Volume64,140
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.02
Price to Cash Flow (P/CF)11.10
P/FCF Ratio12.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$289.64Price Target Upside41.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Boyd Group Services Business Overview & Revenue Model
Company DescriptionBoyd Group Services Inc. is a leading operator within the automotive collision repair industry in North America. The company primarily operates through its subsidiaries, which include Boyd Autobody & Glass and Gerber Collision & Glass. Boyd Group Services is engaged in providing collision repair, auto glass repair and replacement, and related automotive services. The company focuses on delivering high-quality repair solutions and exceptional customer service, leveraging its extensive industry experience and skilled workforce.
How the Company Makes MoneyBoyd Group Services generates revenue by providing automotive repair services, primarily through collision repair and auto glass repair and replacement. The company earns money by charging customers, including individual vehicle owners and insurance companies, for repair services rendered. A significant portion of Boyd's revenue comes from partnerships and agreements with insurance companies, which often direct customers to Boyd's repair centers for claims-related repairs. Additionally, Boyd benefits from economies of scale, operational efficiencies, and strategic acquisitions that expand its market reach and service offerings. The company's growth strategy includes acquiring and integrating new repair locations, thereby increasing its service network and potential revenue streams.
Boyd Group Services Financial Statement Overview
Summary
Boyd Group Services shows impressive revenue growth but declining profitability margins due to increased costs or inefficiencies. The balance sheet reflects high leverage, which may pose risks. Strong cash flows indicate effective cash management, though improvements are needed in profitability and leverage.Income Statement
Boyd Group Services demonstrates a consistent revenue growth trajectory with a notable increase from $1.87 billion in 2021 to $3.07 billion in 2024, reflecting robust business expansion. However, the net profit margin has decreased significantly from 2.94% in 2021 to 0.80% in 2024, indicating rising costs or inefficiencies. The gross profit margin remains strong, averaging around 45%, but the EBIT margin has dropped to 0% in 2024, suggesting operational challenges.70
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively high at 1.51 in 2024, which could indicate potential leverage risks. However, the return on equity has decreased from 3.24% in 2021 to 2.95% in 2024, suggesting limited returns on shareholders' investments. The equity ratio has shown slight improvement, indicating a stable asset base backed by equity.65
Positive
Cash Flow
Boyd Group Services maintains strong operating cash flows, with a slight decline from $357.5 million in 2023 to $313.3 million in 2024. The free cash flow has also decreased, impacting the free cash flow to net income ratio. Despite these challenges, the operating cash flow to net income ratio remains robust at 12.77 in 2024, indicating strong cash generation relative to net earnings.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.07B | 2.95B | 2.43B | 1.87B | 1.64B | Gross Profit |
| 1.40B | 1.34B | 1.09B | 839.26M | 754.36M | EBIT |
| 0.00 | 175.40M | 97.73M | 65.70M | 95.73M | EBITDA |
| 325.89M | 364.09M | 353.65M | 267.75M | 298.31M | Net Income Common Stockholders |
| 24.54M | 86.66M | 40.96M | 23.54M | 44.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.00M | 22.51M | 15.07M | 27.71M | 60.95M | Total Assets |
| 2.46B | 2.38B | 2.10B | 2.03B | 1.57B | Total Debt |
| 1.25B | 1.14B | 978.10M | 985.42M | 598.62M | Net Debt |
| 1.23B | 1.11B | 963.03M | 957.71M | 537.67M | Total Liabilities |
| 1.63B | 1.55B | 1.36B | 1.30B | 858.54M | Stockholders Equity |
| 830.86M | 828.33M | 746.60M | 726.43M | 710.60M |
| Cash Flow | Free Cash Flow | |||
| 232.87M | 298.38M | 230.62M | 160.32M | 213.88M | Operating Cash Flow |
| 313.32M | 357.55M | 264.25M | 196.71M | 240.74M | Investing Cash Flow |
| -207.74M | -244.40M | -47.92M | -354.10M | ― | Financing Cash Flow |
| -106.88M | -105.93M | -228.37M | 124.37M | ― |
Boyd Group Services Technical Analysis
Negative
204.89
Price Trends
230.33
Negative
223.24
Negative
225.22
Negative
Market Momentum
-7.56
Positive
30.97
Neutral
11.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BYD, the sentiment is Negative. The current price of 204.89 is below the 20-day moving average (MA) of 218.16, below the 50-day MA of 230.33, and below the 200-day MA of 225.22, indicating a bearish trend. The MACD of -7.56 indicates Positive momentum. The RSI at 30.97 is Neutral, neither overbought nor oversold. The STOCH value of 11.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BYD.
Boyd Group Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$31.17B | 44.20 | 9.33% | 0.63% | 11.98% | 22.53% | |
73 Outperform | C$1.07B | 9.54 | 11.27% | 6.56% | -0.27% | -15.99% | |
63 Neutral | C$97.55B | 97.41 | 30.90% | 0.12% | 21.56% | 31.90% | |
60 Neutral | $31.75B | 18.41 | 19.01% | 0.22% | 2.83% | 9.02% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
57 Neutral | C$353.70M | ― | 7.01% | ― | -16.86% | -236.70% | |
56 Neutral | $4.40B | 130.84 | 2.96% | 0.30% | 5.76% | -71.36% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:BYD
Boyd Group Services
202.25
-77.43
-27.69%
TSE:GIB.A
CGI
137.46
-7.11
-4.92%
TSE:CSU
Constellation Software
4,519.58
882.88
24.28%
TSE:MTL
Mullen Group Ltd.
12.19
-1.89
-13.42%
TSE:WSP
WSP Global
229.59
15.96
7.47%
TSE:ACQ
AutoCanada
14.56
-10.73
-42.43%
Boyd Group Services Earnings Call Summary
Earnings Call Date: Mar 19, 2025 | % Change Since: -9.57% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some positive aspects such as revenue growth from new locations and a promising cost-saving initiative (Project 360). However, these were overshadowed by significant challenges, including a decline in same-store sales, decreased adjusted EBITDA, increased operating expenses, and a drop in net earnings. Additionally, the challenging claims environment continues to impact performance negatively.Highlights
Revenue Growth from New Locations
Sales increased by 4.2% to $3.1 billion, driven by contributions from 155 new locations.
Project 360 Cost Initiative
Boyd has launched Project 360, expected to result in $100 million in annual recurring cost savings. The initiative is set to gradually improve operating expenses starting Q2 2025.
Dividend Increase
Boyd announced an increase to its dividend by 2% to CAD0.612 per share on an annualized basis.
Long-Term Growth Strategy
Boyd aims to grow revenue to $5 billion by 2029 and double adjusted EBITDA dollars from 2024 to 2029.
Lowlights
Decline in Same-Store Sales
Same-store sales declined by 1.8% year-over-year, reflecting ongoing challenges in the claims environment.
Decreased Adjusted EBITDA
Adjusted EBITDA decreased by $33.4 million to $334.8 million due to lower repairable claims volumes and higher operating expenses.
Increased Operating Expenses
Operating expenses increased by $89.9 million, with a higher operating expense ratio of 36.9% for new locations.
Net Earnings Decline
Net earnings dropped to $24.5 million from $86.7 million in the prior year, impacted by lower adjusted EBITDA, increased depreciation, and finance costs.
Challenging Claims Environment
Decline in claims volumes due to insurance premium inflation and overall economic uncertainty, with repairable claims experiencing a greater year-over-year decline in early 2025.
Company Guidance
During the Boyd Group Services, Inc. fourth quarter and year-end 2024 conference call, several key metrics and guidance were discussed. The company reported a 4.2% increase in annual sales to $3.1 billion, despite a 1.8% decline in same-store sales. Operating expenses rose to 34.6% of sales from 33% the previous year, while adjusted EBITDA decreased by $33.4 million to $334.8 million, largely due to a decline in repairable claims. The company launched Project 360, aiming for $100 million in annual cost savings, with initial expenses of $4.4 million recorded in the fourth quarter. Despite reporting a decrease in adjusted net earnings per share from $4.18 to $1.44, Boyd announced a 2% increase in its dividend. The company also outlined its capital expenditure plans, focusing on network technology upgrades, and set a five-year revenue target of $5 billion by 2029. For the first quarter of 2025, Boyd anticipates modest improvements in same-store sales, although adjusted EBITDA is expected to trend slightly below the previous year's levels.Boyd Group Services Corporate Events
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Boyd Group Services Reports 2024 Financial Results and Strategic Initiatives
Negative
Mar 19, 2025
Boyd Group Services Inc. reported a 4.2% increase in sales to $3.1 billion for 2024, driven by new locations despite a decline in same-store sales. However, the company faced challenges with a decrease in adjusted EBITDA by 9.1% and a significant drop in net earnings by 71.7%. Boyd launched ‘Project 360’, aiming for $100 million in cost savings, and announced leadership changes with Brian Kaner set to become CEO. The company also extended its credit facilities and set a new revenue growth goal of $5 billion by 2029.
Dividends
Boyd Group Services Declares Q1 2025 Cash Dividend
Positive
Mar 17, 2025
Boyd Group Services Inc. announced a cash dividend of $0.153 per common share for the first quarter of 2025, payable on April 28, 2025, to shareholders of record as of March 31, 2025. This announcement reflects the company’s ongoing commitment to shareholder returns and may influence investor sentiment positively, reinforcing its stable financial position in the collision repair industry.
Financial Disclosures
Boyd Group Services to Announce Q4 and Year-End Results
Neutral
Feb 28, 2025
Boyd Group Services Inc. announced it will release its fiscal 2024 fourth quarter and year-end results on March 19, 2025. Following the release, a conference call will be held by the company’s management to discuss the financial results, providing stakeholders with insights into the company’s performance and future outlook.
Business Operations and StrategyFinancial Disclosures
Boyd Group Services Sets Ambitious Five-Year Growth and Profitability Goals
Positive
Feb 26, 2025
Boyd Group Services Inc. has announced a new five-year goal to drive growth and enhance profitability by 2029, targeting $5 billion in revenue and doubling its adjusted EBITDA to $700 million. The plan includes expanding market share through same-store sales growth, new shop expansion, and strategic acquisitions, alongside a company-wide cost optimization initiative expected to save $100 million annually, solidifying Boyd’s leading position in the North American collision market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.