DB:8B8

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Black Diamond Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8B8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

8B8

-7.6%

DE Commercial Services

-5.7%

DE Market


1 Year Return

-9.1%

8B8

-11.1%

DE Commercial Services

6.1%

DE Market

Return vs Industry: 8B8 exceeded the German Commercial Services industry which returned -11.1% over the past year.

Return vs Market: 8B8 underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

8B8IndustryMarket
7 Day-3.2%-7.6%-5.7%
30 Day-8.4%-9.3%-5.7%
90 Day3.4%-5.5%-3.6%
1 Year-9.1%-9.1%-7.9%-11.1%9.3%6.1%
3 Year-55.6%-56.9%3.5%-5.5%8.9%-0.7%
5 Yearn/a-4.5%-17.9%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Black Diamond Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Black Diamond Group 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: 8B8 (€1.2) is trading below our estimate of fair value (€3.63)

Significantly Below Fair Value: 8B8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8B8 is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: 8B8 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8B8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8B8 is good value based on its PB Ratio (0.4x) compared to the DE Commercial Services industry average (3.1x).


Next Steps

Future Growth

How is Black Diamond Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

47.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8B8 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 8B8 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 8B8 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 8B8's revenue (4.3% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: 8B8's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8B8 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

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

-42.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8B8 is currently unprofitable.

Growing Profit Margin: 8B8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8B8 is unprofitable, and losses have increased over the past 5 years at a rate of -42% per year.

Accelerating Growth: Unable to compare 8B8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8B8 is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (10.8%).


Return on Equity

High ROE: 8B8 has a negative Return on Equity (-3.88%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Black Diamond Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8B8's short term assets (CA$49.6M) exceed its short term liabilities (CA$39.4M).

Long Term Liabilities: 8B8's short term assets (CA$49.6M) do not cover its long term liabilities (CA$161.6M).


Debt to Equity History and Analysis

Debt Level: 8B8's debt to equity ratio (44.3%) is considered high.

Reducing Debt: 8B8's debt to equity ratio has increased from 33.3% to 44.3% over the past 5 years.


Balance Sheet

Inventory Level: 8B8 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8B8'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: Whilst unprofitable 8B8 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8B8 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -16% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.8%industryaverage3.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8B8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8B8'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 8B8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8B8's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8B8 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8B8'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?

3.9yrs

Average management tenure


CEO

Trevor Haynes (52yo)

10.2yrs

Tenure

CA$1,069,870

Compensation

Mr. Trevor Haynes has been the Chief Executive Officer and President at Black Diamond Group Limited since December 31, 2009 and has been its Chairman since May 7, 2015. Mr. Haynes is a Co-founder of CF Con ...


CEO Compensation Analysis

Compensation vs Market: Trevor's total compensation ($USD805.12K) is above average for companies of similar size in the German market ($USD415.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Trevor Haynes
Chairman10.2yrsCA$1.07m4.8% CA$3.3m
Toby Labrie
Executive VP & CFO3.9yrsCA$496.67k0.14% CA$96.4k
Patrick Melanson
Executive VP of Shared Services & Chief Information Officer4.1yrsCA$475.67k0.094% CA$64.7k
Michael Ridley
Executive VP & COO of Workforce Solutions2.4yrsCA$543.59k0.060% CA$41.5k
Edward Redmond
Executive VP & COO - Modular Space Solutions1.1yrsno data0.22% CA$152.1k

3.9yrs

Average Tenure

56yo

Average Age

Experienced Management: 8B8's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Trevor Haynes
Chairman10.2yrsCA$1.07m4.8% CA$3.3m
Robert Wagemakers
Lead Independent Director2.8yrsCA$74.94k1.15% CA$794.6k
Edward Kernaghan
Independent Director1.9yrsCA$59.77k1.33% CA$915.6k
Steven Stein
Director10.3yrsCA$141.26k1.82% CA$1.3m
Robert Herdman
Independent Director7.9yrsCA$75.94kno data
David Olsson
Independent Director6.1yrsCA$83.62kno data
Barbara Kelley
Independent Director3.8yrsCA$73.77kno data

4.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 8B8's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 8B8 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

Black Diamond Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Black Diamond Group Limited
  • Ticker: 8B8
  • Exchange: DB
  • Founded: 2003
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: CA$99.515m
  • Listing Market Cap: CA$68.838m
  • Shares outstanding: 55.91m
  • Website: https://www.blackdiamondgroup.com

Number of Employees


Location

  • Black Diamond Group Limited
  • 440-2nd Avenue S.W.
  • Suite 1000
  • Calgary
  • Alberta
  • T2P 5E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BDITSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 2006
BDIM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2006
8B8DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2006

Biography

Black Diamond Group Limited rents and sells workspace and modular 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 construction, real estate development, manufacturing, education, financial, and resource industries, as well as government agencies in North America. Its products include office units, lavatories, storage units, multi-unit office complexes, classroom facilities, high security modular buildings, custom manufactured modular facilities, and blast resistant structures. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary products and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics in Canada, the United States, and Australia. This segment also provides asset rental services; and associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. The company was founded in 2003 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 Analysis2020/02/25 23:24
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.