Badger Infrastructure Solutions (TSX:BDGI) - Share price, News & Analysis

BDGI fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	0/6
Financial Health	2/6
Dividends	3/6

BDGI Stock Overview

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

Rewards

Earnings are forecast to grow 85.33% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 2.18% is not well covered by earnings or forecast to be in the next 3 years

Badger Infrastructure Solutions Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Badger Infrastructure Solutions
Historical stock prices
Current Share Price	CA$30.04
52 Week High	CA$41.54
52 Week Low	CA$22.54
Beta	1.24
1 Month Change	-0.37%
3 Month Change	-1.02%
1 Year Change	-26.61%
3 Year Change	-37.92%
5 Year Change	34.05%
Change since IPO	19,491.35%

Shareholder Returns

	BDGI	CA Construction	CA Market
7D	1.2%	-6.6%	-3.0%
1Y	-26.6%	-10.4%	4.2%

Return vs Industry: BDGI underperformed the Canadian Construction industry which returned -10.4% over the past year.

Return vs Market: BDGI underperformed the Canadian Market which returned 4.2% over the past year.

Price Volatility

Is BDGI's price volatile compared to industry and market?
BDGI volatility
BDGI Average Weekly Movement	7.9%
Construction Industry Average Movement	4.3%
Market Average Movement	9.6%
10% most volatile stocks in CA Market	16.4%
10% least volatile stocks in CA Market	4.2%

Stable Share Price: BDGI is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BDGI's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	2,119	Paul Vanderberg	https://www.badgerinc.com

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.

Badger Infrastructure Solutions Fundamentals Summary

How do Badger Infrastructure Solutions's earnings and revenue compare to its market cap?
BDGI fundamental statistics
Market Cap	US$800.80m
Earnings (TTM)	-US$2.53m
Revenue (TTM)	US$484.00m

1.7x

P/S Ratio

-316.4x

P/E Ratio

Is BDGI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BDGI income statement (TTM)
Revenue	US$484.00m
Cost of Revenue	US$383.39m
Gross Profit	US$100.61m
Other Expenses	US$103.14m
Earnings	-US$2.53m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.073
Gross Margin	20.79%
Net Profit Margin	-0.52%
Debt/Equity Ratio	56.3%

How did BDGI perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

-699%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

3.77x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: BDGI (CA$30.04) is trading above our estimate of fair value (CA$14.3)

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

Price To Earnings Ratio

PE vs Industry: BDGI is unprofitable, so we can't compare its PE Ratio to the North American Construction industry average.

PE vs Market: BDGI is unprofitable, so we can't compare its PE Ratio to the Canadian market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BDGI's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: BDGI is overvalued based on its PB Ratio (3.8x) compared to the CA Construction industry average (2.5x).

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

85.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: BDGI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BDGI's is expected to become profitable in the next 3 years.

Revenue vs Market: BDGI's revenue (11.4% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: BDGI's revenue (11.4% 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 BDGI's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Badger Infrastructure Solutions performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-29.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BDGI is currently unprofitable.

Growing Profit Margin: BDGI is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: BDGI is unprofitable, and losses have increased over the past 5 years at a rate of 29.6% per year.

Accelerating Growth: Unable to compare BDGI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BDGI is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (25.5%).

Return on Equity

High ROE: BDGI has a negative Return on Equity (-1.19%), as it is currently unprofitable.

Financial Health

How is Badger Infrastructure Solutions's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BDGI's short term assets ($146.6M) exceed its short term liabilities ($82.8M).

Long Term Liabilities: BDGI's short term assets ($146.6M) do not cover its long term liabilities ($175.2M).

Debt to Equity History and Analysis

Debt Level: BDGI's net debt to equity ratio (55.4%) is considered high.

Reducing Debt: BDGI's debt to equity ratio has increased from 35.9% to 56.3% over the past 5 years.

Debt Coverage: BDGI's debt is well covered by operating cash flow (26.8%).

Interest Coverage: BDGI's interest payments on its debt are not well covered by EBIT (1.2x coverage).

Balance Sheet

Dividend

What is Badger Infrastructure Solutions's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BDGI's dividend (2.18%) is higher than the bottom 25% of dividend payers in the Canadian market (1.9%).

High Dividend: BDGI's dividend (2.18%) is low compared to the top 25% of dividend payers in the Canadian market (5.01%).

Stability and Growth of Payments

Stable Dividend: BDGI's dividends per share have been stable in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: BDGI is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: BDGI is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

2.9yrs

Average management tenure

CEO

Paul Vanderberg (61 yo)

5.83yrs

Tenure

US$2,615,719

Compensation

Mr. Paul J. Vanderberg has been the Chief Executive Officer, President and Director at Badger Infrastructure Solutions Ltd. (formerly known as Badger Daylighting Ltd.) since July 27, 2016. Mr. Vanderberg s...

CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.62M) is above average for companies of similar size in the Canadian market ($USD1.52M).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: BDGI's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: BDGI's board of directors are considered experienced (5.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: BDGI 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31