Opinions
Stockchase Insights
Badger Daylighting
BDGI-T
BUY ON WEAKNESS
Oct 04, 2025
Stock price when the opinion was issued
You might be interested:
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Would be fine to move on from this. The balance sheet and cash flow have weakened. Could buy WSP as an alternative. Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Guided double US revenue over next 3 years. Helped favourably by US storms. Missed three of past eight quarters. Unlock Premium - Try 5i Free
Downtrend since earlier this year, along with energy stocks in general. Over the next month and a half, energy is historically weak or sideways. January-April is a time of really positive seasonality.
Price momentum started to improve. RSI started to tick up. Started to see institutional buying. Short-term price trend started to pick up. All of this tells him that the bigger downtrend is reversing, and now seeing signs of new uptrend. Next target is around $46, roughly 10% upside from here. Likes it here, attractive long-term entry point.
Stands to benefit from clarity about where to allocate spending after the US election. Will benefit from US spending on infrastructure and energy. Biggest hydrovac excavation company in NA. Big pickup right after US election, expects a new high on revenue this cycle, as well as on margin profile. Also buying back stock.
Very attractive valuation multiple. Prime takeout candidate if it stays at these levels. Yield is 1.9%.
In an excellent position. Most operations are in US. Business is really booming. US election gave management clarity on how to allocate capital. Despite tariff concerns, what they're making is long-term, critical investments. If it stays cheap, possible takeout by private equity or a strategic acquisition.
Are the biggest in North America and boast a top management team. Business is doing very well. Will be margin expansion. They are not overbuilding. 8% of business is from data centres. 10% is from Canada, but will accelerate if the Build Canada bill goes ahead. Still trades at an attractive PE.
BDGI has seen strong momentum recently, up 70% year-to-date, and 60% over the past year. Forward sales growth is decent, in the high single-digit range, but earnings growth is expected to be low double digits, highlighting solid margin expansion. Its growth rates can be volatile and cyclical, but profit margins have mostly been rising, and it generates decent free cash flows. It trades at a decent valuation of 18X forward earnings. The recent move has been strong, and we think investors will want to see strong earnings to reflect its share price growth. We would not be surprised by some consolidation at some point, but for a long-term hold, we would be fine initiating a position here.
Unlock Premium - Try 5i Free