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Black Diamond Group (TSE:BDI)
TSX:BDI
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Black Diamond
(TSX:BDI)
72Outperform
Positive Factors
Financial Performance
BDI increased its quarterly dividend by 17%, indicating strong financial health and a commitment to returning value to shareholders.
Revenue Growth
LodgeLink reached new highs in room bookings and net revenue, showing robust growth for the platform.
Negative Factors
Profit Margins
Workforce Solutions segment experienced a decline in EBITDA margins, which were down approximately 500 basis points quarter over quarter.
Revenue Projections
Slower WFS project ramp-up to weigh on near-term rental revenues.
Black Diamond (BDI) vs. S&P 500 (SPY)
Market Cap
C$562.07M
Dividend Yield1.38%
Average Volume (3M)41.74K
Price to Earnings (P/E)21.6
Beta (1Y)1.18
Revenue Growth2.41%
EPS Growth-16.76%
CountryCA
Employees507
SectorIndustrials
Sector Strength70
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.42
Shares Outstanding61,969,970
10 Day Avg. Volume46,407
30 Day Avg. Volume41,745
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.34
Price to Cash Flow (P/CF)4.50
P/FCF Ratio7.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.25Price Target Upside24.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Black Diamond Business Overview & Revenue Model
Company DescriptionBlack Diamond (BDI) is a company operating in the outdoor recreation equipment and apparel industry. It specializes in manufacturing and selling high-performance gear for climbing, skiing, and mountain sports. The company's product range includes climbing equipment, ski gear, and outdoor apparel, catering to both professional athletes and outdoor enthusiasts.
How the Company Makes MoneyBlack Diamond makes money primarily through the sale of its outdoor recreation products across various distribution channels, including direct-to-consumer sales via its website, retail stores, and third-party retailers worldwide. The company's revenue streams are driven by its product lines, which consist of climbing gear, ski equipment, and technical apparel. Black Diamond also benefits from strategic partnerships with outdoor retailers and distributors that help expand its market reach. Additionally, the company invests in innovation and brand loyalty, which contribute to sustained sales growth and customer retention.
Black Diamond Financial Statement Overview
Summary
Black Diamond shows substantial revenue growth and strong gross profitability. However, declining net margin and increased leverage pose challenges. The balance sheet is stable, though rising debt levels warrant attention. Cash flow remains robust, with strong operational cash generation, but high capital expenditures impact free cash flow.Income Statement
Black Diamond has demonstrated consistent revenue growth with a 2.41% increase from 2023 to 2024. The gross profit margin for 2024 is strong at 45.6%. However, the net profit margin declined to 6.36% compared to 7.72% in 2023, indicating challenges in maintaining profitability. The EBIT margin is 0% for 2024, indicating no reported EBIT, while EBITDA margin remains robust at 25.44%.72
Positive
Balance Sheet
The company maintains a healthy equity ratio of 43.18%, suggesting a stable financial structure. However, the debt-to-equity ratio increased to 0.81 from 0.73 in 2023, reflecting higher leverage. Return on Equity (ROE) slightly decreased to 7.94% from 10.46% in 2023, indicating room for improvement in generating returns for shareholders.68
Positive
Cash Flow
Operating cash flow is strong at $111.36 million, but free cash flow decreased significantly due to higher capital expenditures. The free cash flow to net income ratio is low, reflecting challenges in converting earnings to cash. The operating cash flow to net income ratio is high, indicating good cash generation relative to earnings.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 403.00M | 393.50M | 324.54M | 339.55M | 179.86M |
| Gross Profit | ||||
| 183.77M | 174.45M | 138.14M | 111.63M | 72.21M |
| EBIT | ||||
| 0.00 | 98.81M | 42.81M | 24.29M | 3.33M |
| EBITDA | ||||
| 102.53M | 98.81M | 84.27M | 61.23M | 35.83M |
| Net Income Common Stockholders | ||||
| 25.65M | 30.36M | 26.38M | 20.36M | -2.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.32M | 6.51M | 8.31M | 4.56M | 3.68M |
| Total Assets | ||||
| 748.55M | 647.64M | 649.44M | 530.34M | 511.89M |
| Total Debt | ||||
| 262.66M | 211.74M | 249.06M | 179.68M | 198.56M |
| Net Debt | ||||
| 249.34M | 205.23M | 240.75M | 175.13M | 194.88M |
| Total Liabilities | ||||
| 421.50M | 353.68M | 376.90M | 283.54M | 285.21M |
| Stockholders Equity | ||||
| 323.19M | 290.08M | 268.53M | 234.46M | 212.71M |
| Cash Flow | Free Cash Flow | |||
| 2.14M | 63.91M | 16.55M | 33.26M | 14.06M |
| Operating Cash Flow | ||||
| 111.36M | 133.00M | 70.79M | 71.14M | 50.03M |
| Investing Cash Flow | ||||
| -112.25M | -68.59M | -101.94M | -33.63M | -109.85M |
| Financing Cash Flow | ||||
| 7.53M | -65.88M | 34.51M | -36.56M | 59.04M |
Black Diamond Technical Analysis
Positive
9.07
Price Trends
8.75
Positive
8.91
Positive
8.99
Positive
Market Momentum
0.10
Negative
62.70
Neutral
87.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDI, the sentiment is Positive. The current price of 9.07 is above the 20-day moving average (MA) of 8.55, above the 50-day MA of 8.75, and above the 200-day MA of 8.99, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 87.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BDI.
Black Diamond Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $870.28M | 8.43 | 21.89% | 4.11% | 0.84% | -1.74% | |
72 Outperform | C$562.07M | 21.58 | 8.37% | 1.38% | 2.41% | -16.76% | |
70 Outperform | $1.70B | 9.18 | 26.23% | 1.68% | 8.79% | 31.76% | |
66 Neutral | $1.32B | 16.46 | 3.20% | 11.71% | -5.80% | -87.18% | |
62 Neutral | $8.05B | 13.61 | 3.91% | 3.08% | 3.83% | -13.91% | |
53 Neutral | C$438.24M | 14.37 | -1.55% | ― | -6.00% | -150.20% | |
48 Neutral | C$76.49M | ― | -2.44% | ― | -4.44% | 0.75% |
* Industrials Sector Average
Performance Comparison
TSE:BDI
Black Diamond
9.07
0.36
4.13%
TSE:CEU
CES Energy Solutions
7.55
2.79
58.45%
TSE:TCW
Trican Well Service
4.62
0.66
16.76%
TSE:PXT
Parex Resources
13.49
-6.18
-31.43%
TSE:ESI
Ensign Energy Services
2.29
-0.30
-11.58%
TSE:WRG
Western Energy Services
2.26
-0.49
-17.82%
Black Diamond Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 10.07% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The call highlighted significant growth in revenue and profitability across Black Diamond's segments, particularly in MSS and LodgeLink. However, challenges in the WFS segment, particularly in terms of revenue and utilization in Australia, provide some concern. The company's strong financial position and strategic investments support a positive outlook.Highlights
Strong Revenue Growth
Black Diamond generated $132.7 million of revenue in Q4, up 28% from the comparative quarter. Full year consolidated rental revenue was up 1% to $146.8 million over the prior year.
Record MSS Rental Revenue
Modular Space Solutions (MSS) generated record rental revenue of $94.1 million, up 10% from the prior year, and continued to grow its contracted future rental revenue by 26%.
LodgeLink Growth
LodgeLink's gross bookings increased by 21% year-over-year to $94.8 million, with total room nights sold growing by 23%.
Adjusted EBITDA Increase
Adjusted EBITDA rose 43% in Q4 to $37.2 million and was up 6% for the full year to $113.3 million.
Strong Balance Sheet
Available liquidity at year-end was $103.1 million, with the asset-based lending facility increased by $100 million to $425 million.
Lowlights
WFS Revenue Decline
Workforce Solutions (WFS) delivered total revenue of $179 million and adjusted EBITDA of $58.1 million, down 4% and 2% respectively from the prior year.
WFS Contracted Revenue Decrease
Contracted future revenue for WFS was down 11% or $3.9 million from the comparative quarter, primarily due to the completion of two large scale pipeline camp projects.
Australian Utilization Below Expectations
WFS Australia utilization of 67.3% was below management expectations due to certain project delays from customers.
ERP Implementation Costs
ERP systems upgrade expenses were $1.4 million for the quarter, with total expected investments of $11.9 million.
Company Guidance
During Black Diamond's fourth quarter 2024 results conference call, management reported strong financial performance, highlighting a 28% increase in revenue to $132.7 million, and a 43% rise in adjusted EBITDA to $37.2 million compared to the same quarter last year. Consolidated rental revenue grew by 7% to $38.5 million in Q4, with full-year rental revenue up 1% to $146.8 million, and adjusted EBITDA increasing by 6% to $113.3 million. The company achieved a five-year compounded annual growth rate (CAGR) of 17% in revenue, 18% in rental revenue, and 24% in adjusted EBITDA. Capital expenditures in 2024 reached $109.2 million, primarily for rental fleet growth, with $159.4 million in contracted revenue outstanding, up 17% from the previous period. Modular Space Solutions (MSS) generated record rental revenue of $94.1 million, a 10% increase year-over-year, while Workforce Solutions (WFS) reported total revenue of $179 million, down slightly due to the completion of large-scale projects. LodgeLink's gross bookings increased by 21% to $94.8 million, with net revenue reaching $11.4 million. The company remains confident in its 2025 outlook, supported by a strong balance sheet and available liquidity of $103.1 million.Black Diamond Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Black Diamond Group Extends and Expands Credit Facility to Boost Growth
Positive
Feb 20, 2025
Black Diamond Group announced the renewal and expansion of its asset-based revolving credit facility, extending its maturity to February 2030 and increasing its size to $425 million. This move supports Black Diamond’s strategic plans for growth and diversification in specialty rental and industrial services. The unchanged interest rate and terms provide stability, ensuring the company can maintain financial flexibility and liquidity for future expansion efforts.
Black Diamond Group Initiates Automatic Share Purchase Program
Jan 13, 2025
Black Diamond Group Limited has initiated an automatic share purchase plan (ASPP) as part of its normal course issuer bid (NCIB) to repurchase up to 4,542,945 common shares. The ASPP enables the company to buy back shares during periods when it might be restricted from doing so due to regulatory or self-imposed blackout periods. The decision reflects Black Diamond’s belief that its shares may not always reflect their true value, making repurchases an attractive investment. Since the NCIB began, the company has repurchased 252,100 shares, which have been canceled, underscoring their commitment to optimizing shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.