TSX:BAD

Stock Analysis Report

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Executive Summary

Badger Daylighting Ltd. provides non-destructive excavating and related services in Canada and the United States.


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Badger Daylighting's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BAD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.9%

BAD

1.9%

CA Construction

0.9%

CA Market


1 Year Return

-38.4%

BAD

-3.6%

CA Construction

-12.5%

CA Market

Return vs Industry: BAD underperformed the Canadian Construction industry which returned -3.6% over the past year.

Return vs Market: BAD underperformed the Canadian Market which returned -12.5% over the past year.


Shareholder returns

BADIndustryMarket
7 Day4.9%1.9%0.9%
30 Day1.7%-1.4%0.4%
90 Day29.9%11.0%17.4%
1 Year-37.3%-38.4%-2.1%-3.6%-9.5%-12.5%
3 Year19.8%13.8%-10.1%-15.0%4.1%-5.7%
5 Year29.8%19.6%23.7%10.6%23.4%4.9%

Price Volatility Vs. Market

How volatile is Badger Daylighting's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Badger Daylighting undervalued compared to its fair value and its price relative to the market?

18.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAD (CA$30.05) is trading above our estimate of fair value (CA$8.1)

Significantly Below Fair Value: BAD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BAD is poor value based on its PE Ratio (18.1x) compared to the Construction industry average (14.3x).

PE vs Market: BAD is poor value based on its PE Ratio (18.1x) compared to the Canadian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: BAD is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: BAD is overvalued based on its PB Ratio (2.9x) compared to the CA Construction industry average (1.1x).


Next Steps

Future Growth

How is Badger Daylighting forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

39.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAD's forecast earnings growth (39.8% per year) is above the savings rate (1.7%).

Earnings vs Market: BAD's earnings (39.8% per year) are forecast to grow faster than the Canadian market (23.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BAD's revenue (11.6% per year) is forecast to grow faster than the Canadian market (5.4% per year).

High Growth Revenue: BAD's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BAD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Badger Daylighting performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAD has high quality earnings.

Growing Profit Margin: BAD's current net profit margins (9.1%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: BAD's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: BAD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BAD had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Construction industry average (-10.7%).


Return on Equity

High ROE: BAD's Return on Equity (16.5%) is considered low.


Next Steps

Financial Health

How is Badger Daylighting's financial position?


Financial Position Analysis

Short Term Liabilities: BAD's short term assets (CA$306.1M) exceed its short term liabilities (CA$125.0M).

Long Term Liabilities: BAD's short term assets (CA$306.1M) do not cover its long term liabilities (CA$313.1M).


Debt to Equity History and Analysis

Debt Level: BAD's debt to equity ratio (73.6%) is considered high.

Reducing Debt: BAD's debt to equity ratio has increased from 53.7% to 73.6% over the past 5 years.

Debt Coverage: BAD's debt is well covered by operating cash flow (39.4%).

Interest Coverage: BAD's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Badger Daylighting current dividend yield, its reliability and sustainability?

2.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAD's dividend (2%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: BAD's dividend (2%) is low compared to the top 25% of dividend payers in the Canadian market (6.04%).


Stability and Growth of Payments

Stable Dividend: BAD's dividend payments have been volatile in the past 10 years.

Growing Dividend: BAD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.5%), BAD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAD's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Paul Vanderberg (60yo)

3.92yrs

Tenure

CA$2,482,961

Compensation

Mr. Paul J. Vanderberg has been the Chief Executive Officer, President and Director at Badger Daylighting Ltd. since August 15, 2016. Mr. Vanderberg served as the President of Construction Products Distrib ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.83M) is about average for companies of similar size in the Canadian market ($USD1.63M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Vanderberg
President3.92yrsCA$2.48m0.26% CA$2.7m
Darren Yaworsky
VP of Finance & CFO1.08yrsCA$1.53m0.029% CA$300.8k
John Kelly
Chief Operating Officer5.5yrsCA$1.64m0.016% CA$171.9k
Tracey Wallace
Vice President of Human Resource3.08yrsCA$788.64k0.014% CA$148.3k
Jay Bachman
Vice President of Financial Operations & Investor Relations2.33yrsno data0.019% CA$195.3k
Pramod Bhatia
Vice-President of Treasury & Risk0.92yrno data0.0043% CA$45.0k
Connor Hanson
Corporate Controller1.92yrsno datano data
Wade Wilson
Vice President of Business Process Improvementno datano data0.018% CA$192.3k

2.3yrs

Average Tenure

Experienced Management: BAD's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Vanderberg
President3.92yrsCA$2.48m0.26% CA$2.7m
Garry Mihaichuk
Independent Director11.25yrsCA$184.58k0.026% CA$276.7k
Grant Billing
Independent Corporate Director5.08yrsCA$182.40k0.086% CA$901.5k
Glen Roane
Independent Chair of the Board5.67yrsCA$260.10k0.17% CA$1.8m
Mary Jordan
Independent Director1.08yrsCA$134.45kno data
William Lingard
Independent Corporate Director5.08yrsCA$173.27k0.012% CA$121.3k
David Bronicheski
Independent Director0.17yrno data0.030% CA$309.5k
Catherine Best
Independent Corporate Director5.08yrsCA$182.27kno data
William Derwin
Independent Director1.67yrsCA$210.07k0.014% CA$150.3k

5.1yrs

Average Tenure

61yo

Average Age

Experienced Board: BAD's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BAD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Badger Daylighting Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Badger Daylighting Ltd.
  • Ticker: BAD
  • Exchange: TSX
  • Founded: 1992
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CA$1.047b
  • Shares outstanding: 34.85m
  • Website: https://www.badgerinc.com

Number of Employees


Location

  • Badger Daylighting Ltd.
  • ATCO Building ll
  • 4th Floor
  • Calgary
  • Alberta
  • T2R 1P3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BADTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 1996
BADF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 1996
6BDDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1996

Biography

Badger Daylighting 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 for perimeter slot trenching, exposing existing cables or conduits, cable or conduit and drain tile installation, and line fault repairs; 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 and tank cleanouts services for frac tank cleanouts, road and box culvert cleanouts, pipe-rammed casing cleanouts, 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, 2019, it operated a fleet of 1,364 Badger hydrovacs. The company was founded in 1992 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 00:13
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.