Bird Construction (BDT) AI Stock Analysis

• Market Cap: C$1.05B
• Dividend Yield: 3.57%
• Average Volume (3M): 216.94K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.29
• Revenue Growth: 21.39%
• EPS Growth: 37.48%
• Country: CA
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 63
• Industry: Engineering & Construction
• EPS (TTM): 1.83
• Shares Outstanding: 55,382,830
• 10 Day Avg. Volume: 189,294
• 30 Day Avg. Volume: 216,944
• PEG Ratio: 0.28
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.35
• Price to Cash Flow (P/CF): 2.20
• P/FCF Ratio: 2.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$32.67
• Price Target Upside: 72.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Bird Construction's strong financial performance, robust earnings outlook, and strategic positioning contribute positively to its stock score. The undervalued valuation metrics further enhance its attractiveness. However, technical indicators suggest caution due to potential bearish momentum, warranting close monitoring.

Positive Factors

Analyst Recommendation

Analyst's recommendation for Bird Construction is a 'BUY'.

Financial Performance

Q4/2024 revenue increased 18% year-over-year, driven by the Industrial and Buildings segments, with EBITDA increasing 64% year-over-year.

Market Demand

Bird continues to enjoy strong secular demand from end markets such as energy & power, transportation infrastructure, advanced buildings, and industrial.

Negative Factors

Debt Position

Bird's net debt position stood at 0.5x EBITDA, with management prioritizing dividend growth, organic growth investments, and successful acquisitions.

Investor Perception

The quality of the company's backlog appears underappreciated by investors, being more diversified than ever before, growing, and with increasing margins.

Bird Construction Business Overview & Revenue Model

Company Description

Bird Construction Inc. is a leading Canadian construction company that operates in various sectors such as industrial, commercial, institutional, and civil infrastructure. Founded in 1920, Bird Construction provides a comprehensive range of construction services, including design-build, construction management, and general contracting. The company is recognized for delivering high-quality projects across a broad spectrum of industries, including oil and gas, mining, renewable energy, and transportation.

How the Company Makes Money

Bird Construction makes money primarily through its extensive construction services, which include general contracting, construction management, and design-build solutions. The company generates revenue by executing construction projects for clients across various industries, including commercial, institutional, industrial, and civil. Bird Construction engages in both public and private sector projects, allowing it to maintain a diversified portfolio. The company also benefits from strategic partnerships and joint ventures, which enhance its capabilities and access to large-scale projects. Additionally, Bird Construction focuses on maintaining strong relationships with subcontractors and suppliers to optimize project delivery and cost efficiency, contributing positively to its earnings.

Bird Construction Financial Statement Overview

Summary

Bird Construction has demonstrated strong financial performance with significant revenue growth and improved profitability. The company’s balance sheet shows healthy equity and improved leverage management. However, maintaining margin improvements and managing debt levels remain crucial.

Income Statement

Bird Construction has shown strong revenue growth over the years, with a significant increase from $1.37 billion in 2019 to $3.40 billion in 2024. The company's gross profit margin improved significantly, reflecting better cost management. Net profit margin and EBIT margin have also shown positive trends, indicating enhanced profitability. However, maintaining or further improving these margins will be crucial in an industry characterized by tight margins.

Balance Sheet

The company's balance sheet indicates a healthy equity position, with stockholders' equity rising from $127.72 million in 2019 to $430.28 million in 2024. The debt-to-equity ratio has improved, showcasing better leverage management. Return on Equity has improved, reflecting efficient use of equity capital. The equity ratio has stabilized, indicating good asset management. Although improvements are noted, vigilance in managing debt levels is advised.

Cash Flow

Bird Construction's operating cash flow has shown an upward trajectory, which is a positive sign of cash management. Free cash flow has also grown, indicating better capital expenditure management. The operating cash flow to net income ratio suggests adequate cash generation relative to earnings. However, consistency in maintaining cash flow growth is essential to sustain long-term operational stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.40B	2.80B	2.38B	2.22B	1.50B
	Gross Profit
328.76M	240.54M	201.76M	186.69M	126.30M
	EBIT
146.56M	101.17M	66.66M	63.86M	55.31M
	EBITDA
214.15M	137.94M	115.50M	95.58M	71.42M
	Net Income Common Stockholders
100.10M	71.54M	49.86M	42.78M	36.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.55M	177.58M	111.63M	125.68M	212.07M
	Total Assets
1.81B	1.42B	1.23B	1.14B	1.06B
	Total Debt
261.36M	151.36M	148.35M	158.04M	150.99M
	Net Debt
216.80M	-26.17M	36.72M	32.36M	-61.08M
	Total Liabilities
1.38B	1.10B	956.29M	893.66M	849.19M
	Stockholders Equity
430.28M	322.49M	272.99M	243.49M	212.61M
Cash Flow		Free Cash Flow
80.46M	45.51M	15.63M	24.07M	114.72M
	Operating Cash Flow
114.24M	75.80M	43.40M	35.83M	128.95M
	Investing Cash Flow
-131.30M	-27.51M	-14.81M	-23.30M	-53.90M
	Financing Cash Flow
16.83M	-45.36M	-44.28M	-34.25M	-43.28M

Bird Construction Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BDT, the sentiment is Negative. The current price of 18.98 is below the 20-day moving average (MA) of 21.45, below the 50-day MA of 22.34, and below the 200-day MA of 24.91, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 34.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BDT.

Bird Construction Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STN	78 Outperform	$13.03B	36.04	12.88%	0.77%	15.75%	7.64%
BDT	76 Outperform	C$1.05B	10.34	26.59%	3.57%	21.39%	37.48%
WSP	75 Outperform	C$31.17B	44.20	9.33%	0.65%	11.98%	22.53%
CJT	68 Neutral	$1.18B	11.13	14.17%	1.82%	14.05%	213.77%
Sector *	62 Neutral	$7.26B	12.38	3.01%	3.40%	3.58%	-14.13%
ARE	51 Neutral	C$1.08B	―	-5.87%	4.56%	-8.64%	-136.62%

Bird Construction Corporate Events

Bird Construction Reports Strong 2024 Growth and Sets Strategic Targets for 2025-2027

Bird Construction Inc. reported significant growth in 2024, with a $600 million increase in revenue and a rise in Adjusted EBITDA Margin to 6.3%. The company’s strategic initiatives have led to a strong financial performance, surpassing its 2022-2024 targets, and positioning it well for future growth as outlined in its 2025-2027 Strategic Plan. Bird’s focus on key Canadian market sectors and a collaborative client approach are expected to help it navigate potential economic and geopolitical uncertainties while continuing to deliver shareholder value.

Bird Construction Secures Alliance for Toronto Transit Hub

Bird Construction Inc., through its joint venture Rail Connect Partners with AtkinsRéalis, has signed a Project Alliance Agreement with Metrolinx to deliver the East Harbour Transit Hub in Toronto. This project, one of Canada’s first major transit initiatives using an alliance contracting model, aims to enhance transit options and connectivity in the region, promising to reshape transportation in Toronto and improve the quality of life for the Greater Toronto community.

Bird Construction Secures $470 Million in Diverse Project Awards

Bird Construction Inc. has secured $470 million in project awards across various sectors, highlighting its diversified growth strategy. The projects include an Integrated Project Delivery model in Atlantic Canada, support for Ontario Power Generation’s nuclear program, a highway expansion in British Columbia, and significant industrial maintenance agreements. These awards reinforce Bird’s industry positioning and strategic partnerships, particularly in the industrial maintenance sector and with Indigenous partners, supporting its expansion into new markets and regions.

Bird Construction Schedules Release of 2024 Financial Results

Bird Construction Inc. announced it will release its 2024 fourth quarter and annual financial results on March 12, 2025, followed by a conference call on March 13, 2025. This announcement is significant as it provides stakeholders with an opportunity to assess the company’s financial health and strategic direction, potentially influencing market positioning and investor confidence.