Boyd Group Services (TSX:BYD) - Share price, News & Analysis

Q: What is the Fair Price of BYD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BYD (CA$190.99) is trading above our estimate of [[fair value]] (CA$162.89)

BYD fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	1/6
Financial Health	1/6
Dividends	0/6

BYD Stock Overview

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America.

Rewards

Earnings are forecast to grow 89.74% per year

Risk Analysis

Interest payments are not well covered by earnings

Profit margins (0.9%) are lower than last year (3%)

Significant insider selling over the past 3 months

Boyd Group Services Competitors

GDI Integrated Facility Services

TSX:GDI

CA$1.2b

Calian Group

TSX:CGY

CA$707.9m

Dexterra Group

TSX:DXT

CA$395.2m

E Automotive

TSX:EINC

CA$327.1m

Price History & Performance

Summary of all time highs, changes and price drops for Boyd Group Services
Historical stock prices
Current Share Price	CA$190.99
52 Week High	CA$267.00
52 Week Low	CA$117.48
Beta	1.15
1 Month Change	29.04%
3 Month Change	29.25%
1 Year Change	-22.32%
3 Year Change	10.91%
5 Year Change	106.08%
Change since IPO	7,857.92%

Recent News & Updates

Jul 29

Estimating The Intrinsic Value Of Boyd Group Services Inc. (TSE:BYD)

In this article we are going to estimate the intrinsic value of Boyd Group Services Inc. ( TSE:BYD ) by taking the...

Shareholder Returns

	BYD	CA Commercial Services	CA Market
7D	-0.8%	2.1%	1.5%
1Y	-22.3%	-17.6%	2.1%

Return vs Industry: BYD underperformed the Canadian Commercial Services industry which returned -18.4% over the past year.

Return vs Market: BYD underperformed the Canadian Market which returned 2.1% over the past year.

Price Volatility

Is BYD's price volatile compared to industry and market?
BYD volatility
BYD Average Weekly Movement	7.8%
Commercial Services Industry Average Movement	7.9%
Market Average Movement	10.6%
10% most volatile stocks in CA Market	18.9%
10% least volatile stocks in CA Market	4.2%

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

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

About the Company

Founded	Employees	CEO	Website
1990	10,145	Tim O'Day	https://www.boydgroup.com

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States.

Boyd Group Services Fundamentals Summary

How do Boyd Group Services's earnings and revenue compare to its market cap?
BYD fundamental statistics
Market Cap	CA$4.10b
Earnings (TTM)	CA$26.16m
Revenue (TTM)	CA$2.81b

156.8x

P/E Ratio

1.5x

P/S Ratio

Is BYD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BYD income statement (TTM)
Revenue	US$2.18b
Cost of Revenue	US$1.21b
Gross Profit	US$962.02m
Other Expenses	US$941.78m
Earnings	US$20.24m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.94
Gross Margin	44.21%
Net Profit Margin	0.93%
Debt/Equity Ratio	52.5%

How did BYD perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

47%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BYD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BYD?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BYD. This is calculated by dividing BYD's market cap by their current preferred multiple.
What is BYD's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.17b

BYD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.9x
Enterprise Value/EBITDA	31x
PEG Ratio	1.7x

Price to Sales Ratio vs Peers

How does BYD's PS Ratio compare to its peers?

BYD PS Ratio vs Peers

The above table shows the PS ratio for BYD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.2x
GDI GDI Integrated Facility Services	0.6x	6.1%	CA$1.2b
CGY Calian Group	1.3x	16.2%	CA$707.9m
DXT Dexterra Group	0.5x	9.0%	CA$395.2m
EINC E Automotive	2.6x	26.2%	CA$327.1m
BYD Boyd Group Services	1.5x	12.7%	CA$4.1b

Price-To-Sales vs Peers: BYD is expensive based on its Price-To-Sales Ratio (1.5x) compared to the peer average (1.2x).

Price to Earnings Ratio vs Industry

How does BYD's PE Ratio compare vs other companies in the CA Commercial Services Industry?

Price-To-Sales vs Industry: BYD is expensive based on its Price-To-Sales Ratio (1.5x) compared to the Canadian Commercial Services industry average (1.4x)

Price to Sales Ratio vs Fair Ratio

What is BYD's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BYD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.5x
Fair PS Ratio	3.1x

Price-To-Sales vs Fair Ratio: BYD is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).

Share Price vs Fair Value

What is the Fair Price of BYD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BYD (CA$190.99) is trading above our estimate of fair value (CA$162.89)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Future Growth

How is Boyd Group Services forecast to perform in the next 1 to 3 years based on estimates from 11 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

89.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BYD's forecast earnings growth (89.7% per year) is above the savings rate (1.6%).

Earnings vs Market: BYD's earnings (89.7% per year) are forecast to grow faster than the Canadian market (7.8% per year).

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

Revenue vs Market: BYD's revenue (12.7% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: BYD's revenue (12.7% 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 BYD's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Boyd Group Services performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-9.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BYD has high quality earnings.

Growing Profit Margin: BYD's current net profit margins (0.9%) are lower than last year (3%).

Past Earnings Growth Analysis

Earnings Trend: BYD's earnings have declined by 9.4% per year over the past 5 years.

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

Earnings vs Industry: BYD had negative earnings growth (-59.8%) over the past year, making it difficult to compare to the Commercial Services industry average (-25.9%).

Return on Equity

High ROE: BYD's Return on Equity (2.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Boyd Group Services's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

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

Financial Position Analysis

Short Term Liabilities: BYD's short term assets ($271.0M) do not cover its short term liabilities ($406.4M).

Long Term Liabilities: BYD's short term assets ($271.0M) do not cover its long term liabilities ($951.0M).

Debt to Equity History and Analysis

Debt Level: BYD's net debt to equity ratio (48.7%) is considered high.

Reducing Debt: BYD's debt to equity ratio has increased from 51.9% to 52.5% over the past 5 years.

Debt Coverage: BYD's debt is well covered by operating cash flow (52.1%).

Interest Coverage: BYD's interest payments on its debt are not well covered by EBIT (1.9x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Boyd Group Services's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.30%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BYD's dividend (0.3%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.85%).

High Dividend: BYD's dividend (0.3%) is low compared to the top 25% of dividend payers in the Canadian market (5.28%).

Stability and Growth of Payments

Stable Dividend: BYD is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: BYD is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: BYD is not paying a notable dividend for the Canadian market.

Cash Payout to Shareholders

Cash Flow Coverage: BYD is not paying a notable dividend for the Canadian market.

Discover strong dividend paying companies

Management

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

5.6yrs

Average management tenure

CEO

Tim O'Day (63 yo)

5.58yrs

Tenure

US$1,816,867

Compensation

Mr. Timothy O'Day, also known as Tim, has been Chief Executive Officer of Boyd Group Services Inc. (formerly known as Boyd Group Income Fund) since January 2, 2020 and its President since January 04, 2017....

CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD1.82M) is below average for companies of similar size in the Canadian market ($USD3.48M).

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

Leadership Team

Experienced Management: BYD's management team is seasoned and experienced (5.6 years average tenure).

Board Members

Experienced Board: BYD's board of directors are considered experienced (7.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: BYD insiders have sold more shares than they have bought 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	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31