Stock price when the opinion was issued
Weak, while NA markets are at highs. Tremendous success in the past making acquisitions, integrating, and increasing margins. That hasn't changed. Once a market darling, people got carried away. Speed of acquisition has slowed.
Going forward, has technology to calibrate the increasing number of sensors on cars, which smaller shops don't. Needs to accelerate earnings growth.
90+% revenue comes from the US. Cashflow attributes are very strong. Continues to acquire. There are only so many rollups he's willing to invest in. Quite reasonable, but just hasn't made the cut for his portfolio. Nothing wrong with the company, but slightly dilutive on the share count and insider ownership not high.
A somewhat weak year, but good outlook for growth. Could add on pullback, but there are better ideas out there.
BYD has faced recent weakness on slowing same-store sales, labour headwinds, and increased upfront expenses from greenfeield and brownfield investments. Its valuation is expensive given the companies historical trackrecord of execution and successfully integrating acquisitions. We think a reversal of the factors mentioned can push BYD back up to historical levels. We believe that these will reverse and analyst outlook calls for EPS to double next year, so we will be watching the upcoming earnings closely.
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Based in Winnipeg, yet 90% of business comes from US. Pulled back, though always priced at a premium, so valuation is not strikingly attractive. Seeing less traffic due to mild weather and a weaker economy. Needs to renegotiate insurance contracts for increased labour costs. Providing more in-house services, which requires more up-front investment. On her radar.
Growth plans are getting traction. Looks better than before. Because of a jump in the costs of car repairs last year, people deferred getting those repairs. So this business is coming back. Also, BYD's scanning and calibration business is growing, a lucrative one they used to outsource. Are building their own locations and buying fewer businesses, which give them a better return.
Usually pretty steady business. Recent spike in insurance premiums, so the repair industry's been hit. BYD has been doing a tremendous job in this tough environment, gaining lots of market share. You can put off repairs for only so long; eventually there's a normalization of insurance premiums, and there will be an eventual catchup in submission rates. Yield is 0.3%.
(Analysts’ price target is $267.58)Stands to benefit from tariffs, as there will be fewer write offs, which means more repair work.