DB:7BV

Stock Analysis Report

Executive Summary

BrightView Holdings, Inc. provides commercial landscaping services in the United States.

Rewards

Trading at 68.8% below its fair value

Earnings are forecast to grow 22.24% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Good value with moderate growth potential.

Share Price & News

How has BrightView Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7BV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.6%

7BV

0.8%

DE Commercial Services

7.1%

DE Market


1 Year Return

-26.0%

7BV

-32.2%

DE Commercial Services

-17.5%

DE Market

Return vs Industry: 7BV exceeded the German Commercial Services industry which returned -32.2% over the past year.

Return vs Market: 7BV underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

7BVIndustryMarket
7 Day17.6%0.8%7.1%
30 Day-27.5%-24.0%-20.0%
90 Day-37.2%-34.1%-26.1%
1 Year-26.0%-26.0%-29.7%-32.2%-15.0%-17.5%
3 Yearn/a-27.5%-33.9%-18.8%-25.8%
5 Yearn/a-35.3%-44.4%-17.9%-29.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is BrightView Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7BV (€9.35) is trading below our estimate of fair value (€29.93)

Significantly Below Fair Value: 7BV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7BV is good value based on its PE Ratio (27.4x) compared to the Commercial Services industry average (95.2x).

PE vs Market: 7BV is poor value based on its PE Ratio (27.4x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: 7BV is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 7BV is good value based on its PB Ratio (0.9x) compared to the DE Commercial Services industry average (2.5x).


Next Steps

Future Growth

How is BrightView Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7BV's forecast earnings growth (22.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: 7BV's earnings (22.2% per year) are forecast to grow faster than the German market (14.2% per year).

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

Revenue vs Market: 7BV's revenue (1.7% per year) is forecast to grow slower than the German market (4.2% per year).

High Growth Revenue: 7BV's revenue (1.7% 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 7BV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has BrightView Holdings performed over the past 5 years?

68.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7BV has a large one-off loss of $13.0M impacting its December 31 2019 financial results.

Growing Profit Margin: 7BV became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 7BV has become profitable over the past 5 years, growing earnings by 68% per year.

Accelerating Growth: 7BV has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 7BV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (10.4%).


Return on Equity

High ROE: 7BV's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is BrightView Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 7BV's short term assets ($542.6M) exceed its short term liabilities ($362.7M).

Long Term Liabilities: 7BV's short term assets ($542.6M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: 7BV's debt to equity ratio (90.1%) is considered high.

Reducing Debt: Insufficient data to determine if 7BV's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 7BV has a low level of unsold assets or inventory.

Debt Coverage by Assets: 7BV's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 7BV is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 7BV is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is BrightView Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 7BV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 7BV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 7BV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7BV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 7BV's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Andrew Masterman (51yo)

3.25s

Tenure

US$3,862,894

Compensation

Mr. Andrew V. Masterman has been Chief Executive Officer, President and Director at BrightView Landscapes, LLC since December 2016. Mr. Masterman is Chief Executive Officer and Director of BrightView Holdi ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD3.86M) is above average for companies of similar size in the German market ($USD1.40M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Masterman
President3.25yrsUS$3.86m0.63% $6.4m
John Feenan
Executive VP & CFO4.17yrsUS$1.58m0.24% $2.5m
Jonathan Gottsegen
Executive VP4.17yrsUS$1.31m0.090% $915.4k
Jeffery Herold
President of Maintenance Services3.5yrsUS$1.18m0.48% $4.9m
Thomas Donnelly
President of Development Services & Landscape Development5.75yrsUS$1.13m0.28% $2.9m
Louay Khatib
Chief Accounting Officerno datano data0.013% $132.0k
Brian Bruce
Executive VP & Chief Information Officerno datano datano data
Fred Jacobs
VP of Communications & Public Affairsno datano datano data
Todd Chambers
Executive VP & Chief Marketing Officer3.17yrsno datano data
Amanda Orders
Executive VP & Chief Human Resources Officer0.33yrno data0.017% $173.6k

3.5yrs

Average Tenure

55yo

Average Age

Experienced Management: 7BV's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Masterman
President3.25yrsUS$3.86m0.63% $6.4m
Paul Raether
Chairman of the Board1.67yrsno datano data
James Abrahamson
Independent Director4.58yrsUS$248.75k0.053% $539.0k
Mara Swan
Independent Director0.92yrUS$163.75k0.011% $115.7k
Richard Roedel
Independent Director5.17yrsUS$190.00k0.081% $830.2k
Jane Bomba
Independent Director0.92yrUS$165.00k0.011% $116.7k
Joshua Weisenbeck
Director4.83yrsno datano data
Shamit Grover
Director1.42yrsno datano data

2.5yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 7BV's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.8%.


Top Shareholders

Company Information

BrightView Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BrightView Holdings, Inc.
  • Ticker: 7BV
  • Exchange: DB
  • Founded: 1939
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$1.132b
  • Listing Market Cap: US$1.021b
  • Shares outstanding: 104.75m
  • Website: https://www.brightview.com

Number of Employees


Location

  • BrightView Holdings, Inc.
  • 980 Jolly Road
  • Suite 300
  • Blue Bell
  • Pennsylvania
  • 19422
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BVNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2018
7BVDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2018

Biography

BrightView Holdings, Inc. provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. It serves corporate campuses and commercial properties, homeowners’ associations, public parks, international hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, golf courses, and others. This segment’s customer base includes approximately 13,000 office parks and corporate campuses, 9,000 residential communities, and 450 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree nursery and installation, pool and water features, sports field, and other services. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 23:31
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.