BIRD CONSTRUCTION INC (BDT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BDT - CA09076P1045 - Common Stock
30.24 CAD
+0.65 (+2.2%)
BDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 9 industry peers in the Construction & Engineering industry. BDT has an excellent profitability rating, but there are some minor concerns on its financial health. BDT has a decent growth rate and is not valued too expensively. Finally BDT also has an excellent dividend rating. With these ratings, BDT could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year BDT was profitable.
- In the past year BDT had a positive cash flow from operations.
- Each year in the past 5 years BDT has been profitable.
- In the past 5 years BDT always reported a positive cash flow from operatings.
1.2 Ratios
- BDT has a Return On Assets (5.06%) which is comparable to the rest of the industry.
- BDT's Return On Equity of 20.52% is fine compared to the rest of the industry. BDT outperforms 66.67% of its industry peers.
- With an excellent Return On Invested Capital value of 14.66%, BDT belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BDT is significantly below the industry average of 71.07%.
- The last Return On Invested Capital (14.66%) for BDT is above the 3 year average (12.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 20.52% | ||
| ROIC | 14.66% |
ROA(3y)4.88%
ROA(5y)4.36%
ROE(3y)21.24%
ROE(5y)19.65%
ROIC(3y)12.73%
ROIC(5y)10.93%
1.3 Margins
- BDT has a Profit Margin (2.72%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of BDT has grown nicely.
- The Operating Margin of BDT (4.25%) is comparable to the rest of the industry.
- BDT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 10.30%, BDT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of BDT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.25% | ||
| PM (TTM) | 2.72% | ||
| GM | 10.3% |
OM growth 3Y26.75%
OM growth 5Y31.32%
PM growth 3Y15.2%
PM growth 5Y33.68%
GM growth 3Y8.57%
GM growth 5Y13.41%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BDT is still creating some value.
- The number of shares outstanding for BDT has been increased compared to 1 year ago.
- Compared to 5 years ago, BDT has more shares outstanding
- Compared to 1 year ago, BDT has a worse debt to assets ratio.
2.2 Solvency
- BDT has an Altman-Z score of 3.27. This indicates that BDT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.27, BDT is in line with its industry, outperforming 55.56% of the companies in the same industry.
- The Debt to FCF ratio of BDT is 13.49, which is on the high side as it means it would take BDT, 13.49 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 13.49, BDT perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- BDT has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- BDT has a better Debt to Equity ratio (0.43) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.54
WACC9.54%
2.3 Liquidity
- BDT has a Current Ratio of 1.28. This is a normal value and indicates that BDT is financially healthy and should not expect problems in meeting its short term obligations.
- BDT's Current ratio of 1.28 is amongst the best of the industry. BDT outperforms 88.89% of its industry peers.
- A Quick Ratio of 1.27 indicates that BDT should not have too much problems paying its short term obligations.
- BDT's Quick ratio of 1.27 is fine compared to the rest of the industry. BDT outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.91% over the past year.
- Measured over the past years, BDT shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.18% on average per year.
- Looking at the last year, BDT shows a small growth in Revenue. The Revenue has grown by 6.26% in the last year.
- BDT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.81% yearly.
EPS 1Y (TTM)15.91%
EPS 3Y35.27%
EPS 5Y55.18%
EPS Q2Q%-7.25%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y15.24%
Revenue growth 5Y19.81%
Sales Q2Q%5.84%
3.2 Future
- Based on estimates for the next years, BDT will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.47% on average per year.
- The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y-2.93%
EPS Next 2Y14.18%
EPS Next 3Y18.47%
EPS Next 5YN/A
Revenue Next Year0.82%
Revenue Next 2Y6.83%
Revenue Next 3Y8.02%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.82, which indicates a correct valuation of BDT.
- Based on the Price/Earnings ratio, BDT is valued cheaper than 88.89% of the companies in the same industry.
- BDT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- BDT is valuated reasonably with a Price/Forward Earnings ratio of 11.72.
- 100.00% of the companies in the same industry are more expensive than BDT, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, BDT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than BDT, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as BDT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.22 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
- The decent profitability rating of BDT may justify a higher PE ratio.
- A more expensive valuation may be justified as BDT's earnings are expected to grow with 18.47% in the coming years.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y14.18%
EPS Next 3Y18.47%
5. Dividend
5.1 Amount
- BDT has a Yearly Dividend Yield of 2.85%.
- BDT's Dividend Yield is rather good when compared to the industry average which is at 0.82. BDT pays more dividend than 100.00% of the companies in the same industry.
- BDT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
- The dividend of BDT is nicely growing with an annual growth rate of 7.07%!
- BDT has paid a dividend for at least 10 years, which is a reliable track record.
- BDT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.07%
Div Incr Years2
Div Non Decr Years7
5.3 Sustainability
- 46.81% of the earnings are spent on dividend by BDT. This is a bit on the high side, but may be sustainable.
- The dividend of BDT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.81%
EPS Next 2Y14.18%
EPS Next 3Y18.47%
BIRD CONSTRUCTION INC / BDT.CA FAQ
Can you provide the ChartMill fundamental rating for BIRD CONSTRUCTION INC?
ChartMill assigns a fundamental rating of 6 / 10 to BDT.CA.
What is the valuation status of BIRD CONSTRUCTION INC (BDT.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to BIRD CONSTRUCTION INC (BDT.CA). This can be considered as Fairly Valued.
What is the profitability of BDT stock?
BIRD CONSTRUCTION INC (BDT.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for BDT stock?
The Price/Earnings (PE) ratio for BIRD CONSTRUCTION INC (BDT.CA) is 14.82 and the Price/Book (PB) ratio is 3.66.
Can you provide the dividend sustainability for BDT stock?
The dividend rating of BIRD CONSTRUCTION INC (BDT.CA) is 8 / 10 and the dividend payout ratio is 46.81%.