Badger Infrastructure Solutions Ltd. (BAD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

SNC-Lavalin Group, Inc.

WSP Global, Inc.

Stantec, Inc.

Bird Construction, Inc.

Badger Infrastructure Solutions Ltd.

Foraco International SA

Aecon Group, Inc.

ADF Group, Inc.

Brookfield Business Corp.

SolarBank Corp.

Spark Power Group, Inc.

Why is Badger Infrastructure Solutions Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 194.81 MM
NET PROFIT(9M) At CAD 37.69 MM has Grown at 79.07%
ROCE(HY) Highest at 21.89%

With ROE of 20.07%, it has a fair valuation with a 5.53 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 60.74%, its profits have risen by 58.9% ; the PEG ratio of the company is 0.5

Market Beating performance in long term as well as near term

Along with generating 60.74% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Badger Infrastructure Solutions Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Badger Infrastructure Solutions Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Badger Infrastructure Solutions Ltd.

-100.0%

3.63

31.59%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.89%

EBIT Growth (5y)

11.39%

EBIT to Interest (avg)

3.33

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

1.56

Tax Ratio

30.60%

Dividend Payout Ratio

37.81%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

9.61%

ROE (avg)

9.37%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.26

EV to EBIT

20.88

EV to EBITDA

10.86

EV to Capital Employed

3.85

EV to Sales

2.40

PEG Ratio

0.51

Dividend Yield

0.02%

ROCE (Latest)

18.42%

ROE (Latest)

20.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 194.81 MM

NET PROFIT(9M)

At CAD 37.69 MM has Grown at 79.07%

ROCE(HY)

Highest at 21.89%

INVENTORY TURNOVER RATIO(HY)

Highest at 49.03%

RAW MATERIAL COST(Y)

Fallen by -7.24% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 4.37

NET SALES(Q)

Highest at CAD 288.14 MM

-2What is not working for the Company

INTEREST(Q)

At CAD 5.7 MM has Grown at 13.2%

Here's what is working for Badger Infrastructure Solutions Ltd.

Operating Cash Flow

Highest at CAD 194.81 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Inventory Turnover Ratio

Highest at 49.03% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

At CAD 37.69 MM has Grown at 79.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Sales

Highest at CAD 288.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Dividend per share

Highest at CAD 4.37

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -7.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 30.06 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Badger Infrastructure Solutions Ltd.

Interest

At CAD 5.7 MM has Grown at 13.2%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)