NYSE:BV

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 60.5% below its fair value

Earnings are forecast to grow 30.74% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Fair 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: BV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

BV

2.8%

US Commercial Services

1.7%

US Market


1 Year Return

17.3%

BV

23.1%

US Commercial Services

23.2%

US Market

Return vs Industry: BV underperformed the US Commercial Services industry which returned 23.7% over the past year.

Return vs Market: BV underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BVIndustryMarket
7 Day-0.3%2.8%1.7%
30 Day1.8%4.2%4.2%
90 Day-5.2%4.9%11.9%
1 Year17.3%17.3%27.7%23.1%25.8%23.2%
3 Yearn/a66.8%55.8%52.8%42.9%
5 Yearn/a108.6%87.4%75.2%55.8%

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

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: BV ($16.84) is trading below our estimate of fair value ($42.66)

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


Price To Earnings Ratio

PE vs Industry: BV is poor value based on its PE Ratio (39x) compared to the Commercial Services industry average (26.4x).

PE vs Market: BV is poor value based on its PE Ratio (39x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BV is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BV is good value based on its PB Ratio (1.4x) compared to the US Commercial Services industry average (2.1x).


Next Steps

Future Growth

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

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BV's forecast earnings growth (30.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BV's earnings (30.7% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: BV's revenue (3.4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BV's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BV's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has BrightView Holdings performed over the past 5 years?

60.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BV has high quality earnings.

Growing Profit Margin: BV became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BV has become profitable over the past 5 years, growing earnings by 60.5% per year.

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

Earnings vs Industry: BV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (-1.3%).


Return on Equity

High ROE: BV's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BrightView Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BV's short term assets ($551.4M) exceed its short term liabilities ($332.7M).

Long Term Liabilities: BV's short term assets ($551.4M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: BV's debt to equity ratio (90%) is considered high.

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

Debt Coverage: BV's debt is not well covered by operating cash flow (14.7%).

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


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if BV'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 BV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of BrightView Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Andrew Masterman (51yo)

3.1yrs

Tenure

US$12,040,205

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 ($USD12.04M) is above average for companies of similar size in the US market ($USD3.86M).

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


Management Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: BV's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BV's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$17,33006 Jun 19
Thomas Donnelly
EntityIndividual
Role
Senior Key Executive
President of Landscape Development
Shares1,000
Max PriceUS$17.33
BuyUS$13,71806 Mar 19
Thomas Donnelly
EntityIndividual
Role
Senior Key Executive
President of Landscape Development
Shares1,000
Max PriceUS$13.72

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.3%.


Management Team

  • John Feenan (58yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$5.38m
  • Jeff Herold (59yo)

    COO of Maintenance Services & President of Seasonal Division and Enterprise Solutions

    • Tenure: 3.3yrs
    • Compensation: US$2.64m
  • Todd Chambers

    Executive VP & Chief Marketing Officer

    • Tenure: 3yrs
  • Brian Bruce

    Executive VP & Chief Information Officer

    • Andrew Masterman (51yo)

      President

      • Tenure: 3.1yrs
      • Compensation: US$12.04m
    • Jonathan Gottsegen (52yo)

      Executive VP

      • Tenure: 4yrs
      • Compensation: US$2.81m
    • Fred Jacobs

      VP of Communications & Public Affairs

      • Dan Schleiniger (45yo)

        Vice President of Investor Relations

        • Tenure: 1.3yrs
      • Louay Khatib

        Chief Accounting Officer

        • Tom Donnelly (65yo)

          President of Landscape Development

          • Tenure: 5.6yrs
          • Compensation: US$2.27m

        Board Members

        • Paul Raether (73yo)

          Chairman of the Board

          • Tenure: 1.5yrs
        • Jim Abrahamson (64yo)

          Independent Director

          • Tenure: 4.4yrs
          • Compensation: US$80.00k
        • Mara Swan (59yo)

          Independent Director

          • Tenure: 0.8yrs
        • Rich Roedel (70yo)

          Independent Director

          • Tenure: 5yrs
          • Compensation: US$180.00k
        • Jane Bomba (56yo)

          Independent Director

          • Tenure: 0.8yrs
        • Andrew Masterman (51yo)

          President

          • Tenure: 3.1yrs
          • Compensation: US$12.04m
        • Joshua Weisenbeck (37yo)

          Director

          • Tenure: 4.7yrs
        • Shamit Grover (36yo)

          Director

          • Tenure: 1.3yrs

        Company Information

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


        Key Information

        • Name: BrightView Holdings, Inc.
        • Ticker: BV
        • Exchange: NYSE
        • Founded: 1939
        • Industry: Environmental and Facilities Services
        • Sector: Commercial Services
        • Market Cap: US$1.762b
        • Shares outstanding: 104.72m
        • 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 Analysis2020/01/17 02:28
        End of Day Share Price2020/01/16 00:00
        Earnings2019/09/30
        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.