Black Diamond Group (TSX:BDI) - Share price, News & Analysis

BDI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	3/6
Financial Health	3/6
Dividends	2/6

BDI Stock Overview

Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions.

Rewards

Trading at 76.8% below our estimate of its fair value

Earnings are forecast to grow 13.21% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Black Diamond Group Competitors

Precision Drilling

TSX:PD

CA$1.1b

Target Hospitality

NasdaqCM:TH

US$549.7m

Total Energy Services

TSX:TOT

CA$355.6m

Price History & Performance

Summary of all time highs, changes and price drops for Black Diamond Group
Historical stock prices
Current Share Price	CA$4.12
52 Week High	CA$5.65
52 Week Low	CA$3.15
Beta	1.83
1 Month Change	-14.17%
3 Month Change	-11.21%
1 Year Change	3.78%
3 Year Change	84.75%
5 Year Change	15.73%
Change since IPO	-9.05%

Recent News & Updates

May 12

Is Black Diamond Group Limited (TSE:BDI) Potentially Undervalued?

Black Diamond Group Limited ( TSE:BDI ), is not the largest company out there, but it received a lot of attention from...

Shareholder Returns

	BDI	CA Commercial Services	CA Market
7D	-5.5%	-5.8%	-3.0%
1Y	3.8%	-14.5%	4.2%

Return vs Industry: BDI exceeded the Canadian Commercial Services industry which returned -14.5% over the past year.

Return vs Market: BDI matched the Canadian Market which returned 4.2% over the past year.

Price Volatility

Is BDI's price volatile compared to industry and market?
BDI volatility
BDI Average Weekly Movement	6.0%
Commercial Services Industry Average Movement	6.6%
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: BDI is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BDI's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	376	Trevor Haynes	https://www.blackdiamondgroup.com

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.

Black Diamond Group Fundamentals Summary

How do Black Diamond Group's earnings and revenue compare to its market cap?
BDI fundamental statistics
Market Cap	CA$245.32m
Earnings (TTM)	CA$21.64m
Revenue (TTM)	CA$344.01m

11.3x

P/E Ratio

0.7x

P/S Ratio

Is BDI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BDI income statement (TTM)
Revenue	CA$344.01m
Cost of Revenue	CA$225.75m
Gross Profit	CA$118.26m
Other Expenses	CA$96.63m
Earnings	CA$21.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.36
Gross Margin	34.38%
Net Profit Margin	6.29%
Debt/Equity Ratio	64.8%

How did BDI perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

7%

Payout Ratio

Does BDI pay a reliable dividends?

See BDI dividend history and benchmarks

When do you need to buy BDI by to receive an upcoming dividend?
Black Diamond Group dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	43 days
Days until Dividend pay date	59 days

Does BDI pay a reliable dividends?

See BDI dividend history and benchmarks

Valuation

Is Black Diamond Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BDI (CA$4.12) is trading below our estimate of fair value (CA$17.73)

Significantly Below Fair Value: BDI is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: BDI is good value based on its PE Ratio (11.3x) compared to the Canadian Commercial Services industry average (27.1x).

PE vs Market: BDI's PE Ratio (11.3x) is in line with the Canadian market.

Price to Earnings Growth Ratio

PEG Ratio: BDI is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: BDI is good value based on its PB Ratio (1x) compared to the CA Commercial Services industry average (2.4x).

Future Growth

How is Black Diamond Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

13.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDI's forecast earnings growth (13.2% per year) is above the savings rate (1.6%).

Earnings vs Market: BDI's earnings (13.2% per year) are forecast to grow faster than the Canadian market (7.5% per year).

High Growth Earnings: BDI's earnings are forecast to grow, but not significantly.

Revenue vs Market: BDI's revenue (0.3% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: BDI's revenue (0.3% 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 BDI's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Black Diamond Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

68.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BDI has high quality earnings.

Growing Profit Margin: BDI became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: BDI has become profitable over the past 5 years, growing earnings by 68.4% per year.

Accelerating Growth: BDI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BDI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (-37.9%).

Return on Equity

High ROE: BDI's Return on Equity (9.4%) is considered low.

Financial Health

How is Black Diamond Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: BDI's short term assets (CA$79.8M) exceed its short term liabilities (CA$57.3M).

Long Term Liabilities: BDI's short term assets (CA$79.8M) do not cover its long term liabilities (CA$223.0M).

Debt to Equity History and Analysis

Debt Level: BDI's net debt to equity ratio (63.2%) is considered high.

Reducing Debt: BDI's debt to equity ratio has increased from 34.4% to 64.8% over the past 5 years.

Debt Coverage: BDI's debt is well covered by operating cash flow (44%).

Interest Coverage: BDI's interest payments on its debt are well covered by EBIT (5.4x coverage).

Balance Sheet

Dividend

What is Black Diamond Group current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

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

1.46%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: BDI's dividend (1.46%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.9%).

High Dividend: BDI's dividend (1.46%) is low compared to the top 25% of dividend payers in the Canadian market (5.01%).

Stability and Growth of Payments

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

Growing Dividend: BDI's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.4%), BDI's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (11.8%), BDI's dividend payments are thoroughly covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Commercial Services industry.

Management

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

6.2yrs

Average management tenure

CEO

Trevor Haynes (54 yo)

12.42yrs

Tenure

CA$1,958,934

Compensation

Mr. Trevor Haynes has been the Chief Executive Officer at Black Diamond Group Limited since December 31, 2009 and has been its Chairman since May 7, 2015. He has been the President at Black Diamond Group L...

CEO Compensation Analysis

Compensation vs Market: Trevor's total compensation ($USD1.51M) is above average for companies of similar size in the Canadian market ($USD645.56K).

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

Leadership Team

Experienced Management: BDI's management team is seasoned and experienced (6.2 years average tenure).

Board Members

Experienced Board: BDI's board of directors are considered experienced (8.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: BDI 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