Boyd Group Services (BYD) AI Stock Analysis

• Market Cap: C$4.40B
• Dividend Yield: 0.29%
• Average Volume (3M): 60.74K
• Price to Earnings (P/E): 130.9
• Beta (1Y): 0.33
• Revenue Growth: 5.76%
• EPS Growth: -71.36%
• Country: CA
• Employees: 13,449
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Personal Products & Services
• EPS (TTM): 1.56
• Shares Outstanding: 21,467,808
• 10 Day Avg. Volume: 40,319
• 30 Day Avg. Volume: 60,739
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.02
• Price to Cash Flow (P/CF): 11.10
• P/FCF Ratio: 12.50
• 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$289.79
• Price Target Upside: 41.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Boyd Group Services shows strong revenue growth, but declining profitability and high valuation are significant concerns. The technical indicators suggest weak momentum, and while strategic initiatives like Project 360 are promising, the current financial and market conditions present challenges.

Positive Factors

Business Expansion

Management is expecting seven new start-up locations in the first quarter, and then 21 throughout the balance of the year.

Market Strategy

Analyst recommends a BUY rating with a target of C$160.00.

Market Valuation

Market is undervaluing undeveloped Montney inventory.

Negative Factors

Claims Volume

Management continues to sound cautious around near-term claims volume given consumer/macro headwinds.

Repairable Claims

Repairable claims volumes were down more over the first two months of the first quarter than during the fourth quarter.

Sales Trends

Management called out SSS headwinds have generally continued into 2025, with claims volumes declining due to general macro uncertainty and insurance inflation.

Boyd Group Services Business Overview & Revenue Model

Company Description

Boyd Group Services Inc. is a leading operator in the automotive collision repair industry, primarily operating under the Boyd Autobody & Glass and Gerber Collision & Glass brands across North America. The company provides comprehensive collision repair services, including bodywork, painting, and glass repair for both individual consumers and commercial fleets. With a strong presence in both Canada and the United States, Boyd Group Services has established itself as a trusted name in the automotive repair sector, recognized for its high-quality service and customer satisfaction.

How the Company Makes Money

Boyd Group Services generates revenue primarily through its network of collision repair centers, which service vehicles needing bodywork and glass repair due to accidents or other damage. The company makes money by charging customers for repair services, which are often covered by insurance claims. Boyd Group Services has strategic partnerships with insurance companies, which refer clients to their repair centers, ensuring a steady stream of business. Additionally, the company benefits from economies of scale due to its extensive network of locations, which allows it to negotiate favorable terms with suppliers and optimize operational efficiencies, further enhancing profitability.

Boyd Group Services Financial Statement Overview

Summary

Boyd Group Services shows impressive revenue growth but declining profitability margins due to increased costs or inefficiencies. The balance sheet reflects high leverage, which may pose risks. Strong cash flows indicate effective cash management, though improvements are needed in profitability and leverage.

Income Statement

Boyd Group Services demonstrates a consistent revenue growth trajectory with a notable increase from $1.87 billion in 2021 to $3.07 billion in 2024, reflecting robust business expansion. However, the net profit margin has decreased significantly from 2.94% in 2021 to 0.80% in 2024, indicating rising costs or inefficiencies. The gross profit margin remains strong, averaging around 45%, but the EBIT margin has dropped to 0% in 2024, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.51 in 2024, which could indicate potential leverage risks. However, the return on equity has decreased from 3.24% in 2021 to 2.95% in 2024, suggesting limited returns on shareholders' investments. The equity ratio has shown slight improvement, indicating a stable asset base backed by equity.

Cash Flow

Boyd Group Services maintains strong operating cash flows, with a slight decline from $357.5 million in 2023 to $313.3 million in 2024. The free cash flow has also decreased, impacting the free cash flow to net income ratio. Despite these challenges, the operating cash flow to net income ratio remains robust at 12.77 in 2024, indicating strong cash generation relative to net earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.07B	2.95B	2.43B	1.87B	1.64B
	Gross Profit
1.40B	1.34B	1.09B	839.26M	754.36M
	EBIT
0.00	175.40M	97.73M	65.70M	95.73M
	EBITDA
325.89M	364.09M	353.65M	267.75M	298.31M
	Net Income Common Stockholders
24.54M	86.66M	40.96M	23.54M	44.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.00M	22.51M	15.07M	27.71M	60.95M
	Total Assets
2.46B	2.38B	2.10B	2.03B	1.57B
	Total Debt
1.25B	1.14B	978.10M	985.42M	598.62M
	Net Debt
1.23B	1.11B	963.03M	957.71M	537.67M
	Total Liabilities
1.63B	1.55B	1.36B	1.30B	858.54M
	Stockholders Equity
830.86M	828.33M	746.60M	726.43M	710.60M
Cash Flow		Free Cash Flow
232.87M	298.38M	230.62M	160.32M	213.88M
	Operating Cash Flow
313.32M	357.55M	264.25M	196.71M	240.74M
	Investing Cash Flow
-207.74M	-244.40M	-47.92M	-354.10M	―
	Financing Cash Flow
-106.88M	-105.93M	-228.37M	124.37M	―

Boyd Group Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 204.96
• 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:BYD, the sentiment is Negative. The current price of 204.96 is below the 20-day moving average (MA) of 206.02, below the 50-day MA of 222.47, and below the 200-day MA of 222.03, indicating a bearish trend. The MACD of -4.15 indicates Negative momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 55.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BYD.

Boyd Group Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSP	78 Outperform	C$31.91B	45.25	9.33%	0.61%	11.98%	22.53%
CSU	71 Outperform	C$98.42B	98.27	30.90%	0.12%	21.56%	31.90%
MTL	71 Outperform	C$1.08B	9.70	11.27%	6.47%	-0.27%	-15.99%
GIB.A	61 Neutral	$32.82B	19.02	19.01%	0.20%	2.83%	9.02%
Sector *	60 Neutral	$6.55B	11.40	3.27%	4.25%	2.38%	-21.30%
BYD	58 Neutral	C$4.40B	130.89	2.96%	0.29%	5.76%	-71.36%
ACQ	56 Neutral	C$366.45M	―	7.01%	―	-16.86%	-236.70%

Boyd Group Services Corporate Events

Boyd Group Services Reports 2024 Financial Results and Strategic Initiatives

Boyd Group Services Inc. reported a 4.2% increase in sales to $3.1 billion for 2024, driven by new locations despite a decline in same-store sales. However, the company faced challenges with a decrease in adjusted EBITDA by 9.1% and a significant drop in net earnings by 71.7%. Boyd launched ‘Project 360’, aiming for $100 million in cost savings, and announced leadership changes with Brian Kaner set to become CEO. The company also extended its credit facilities and set a new revenue growth goal of $5 billion by 2029.

Boyd Group Services Declares Q1 2025 Cash Dividend

Boyd Group Services Inc. announced a cash dividend of $0.153 per common share for the first quarter of 2025, payable on April 28, 2025, to shareholders of record as of March 31, 2025. This announcement reflects the company’s ongoing commitment to shareholder returns and may influence investor sentiment positively, reinforcing its stable financial position in the collision repair industry.

Boyd Group Services to Announce Q4 and Year-End Results

Boyd Group Services Inc. announced it will release its fiscal 2024 fourth quarter and year-end results on March 19, 2025. Following the release, a conference call will be held by the company’s management to discuss the financial results, providing stakeholders with insights into the company’s performance and future outlook.

Boyd Group Services Sets Ambitious Five-Year Growth and Profitability Goals

Boyd Group Services Inc. has announced a new five-year goal to drive growth and enhance profitability by 2029, targeting $5 billion in revenue and doubling its adjusted EBITDA to $700 million. The plan includes expanding market share through same-store sales growth, new shop expansion, and strategic acquisitions, alongside a company-wide cost optimization initiative expected to save $100 million annually, solidifying Boyd’s leading position in the North American collision market.