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BrightView Holdings (BV)
NYSE:BV
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BrightView Holdings
(NYSE:BV)
67Neutral
Positive Factors
Market Position
Analyst believes immigration policy headwinds could harm BV's smaller competitors, potentially giving BV a competitive advantage.
Operational Efficiency
BrightView's investment in field service management software enhances service levels and operational efficiency for branch managers.
Strategic Transformation
BrightView's strategic shift through the One Brightview program has positioned it as the employer of choice in the landscaping industry.
Negative Factors
Revenue Performance
Total revenue missed expectations by 2% due to softer snow and landscape maintenance activity.
Weather Dependency
Risks include seasonality and weather-dependency, which could affect BrightView's performance.
BrightView Holdings (BV) vs. S&P 500 (SPY)
Market Cap
$1.27B
Dividend YieldN/A
Average Volume (3M)625.58K
Price to Earnings (P/E)80.9
Beta (1Y)1.17
Revenue Growth-1.69%
EPS GrowthN/A
CountryUS
Employees19,100
SectorIndustrials
Sector Strength64
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding95,500,000
10 Day Avg. Volume614,021
30 Day Avg. Volume625,582
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.46
Price to Cash Flow (P/CF)5.20
P/FCF Ratio3.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.00Price Target Upside31.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
BrightView Holdings Business Overview & Revenue Model
Company DescriptionBrightView Holdings, Inc. is a prominent provider of commercial landscaping services in the United States. The company operates through various segments focused on landscape maintenance and landscape development. BrightView offers a comprehensive range of services, including lawn care, tree care, landscape design, snow removal, and irrigation solutions, catering to a diverse clientele that includes corporations, governments, and educational institutions.
How the Company Makes MoneyBrightView Holdings primarily generates revenue through its landscape maintenance and development services. The landscape maintenance segment, which is its core business, involves recurring services such as turf care, horticulture, and snow and ice management, providing a steady stream of income. The landscape development segment includes design, installation, and construction of landscapes, contributing to one-time and project-based revenue. Additionally, BrightView benefits from strategic partnerships and long-term contracts with large-scale commercial clients and government entities, ensuring a consistent and diversified revenue base.
BrightView Holdings Financial Statement Overview
Summary
BrightView Holdings presents a mixed financial performance with strong operational cash flow and a reasonable balance sheet. Despite manageable debt levels and steady profitability margins, challenges include declining revenue and inconsistent free cash flow growth, highlighting the need for strategic focus on revenue growth and cost management.Income Statement
BrightView Holdings has shown a modest improvement in profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 23%, and the net profit margin is around 2.31%. The company has seen fluctuations in revenue growth, with a decrease from the previous year. The EBIT margin is at 4.55% and EBITDA margin at 10.12% in the TTM, indicating moderate operational efficiency. The persistent challenge is the declining revenue trend, which might affect future profitability.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.67 in the latest TTM period, which is manageable. The return on equity (ROE) is approximately 5.01%, showing modest returns to shareholders. The equity ratio stands at 38.26%, indicating a solid equity base relative to total assets. The company has reduced its total debt significantly, improving its financial stability.70
Positive
Cash Flow
BrightView Holdings has demonstrated a strong operating cash flow relative to net income, with a ratio of 3.75 in the TTM period, indicating good cash generation capability. The free cash flow to net income ratio is 1.74, affirming healthy free cash flow generation. Despite this, the free cash flow growth has been inconsistent, with a decline noted in the most recent TTM period.72
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.74B | 2.77B | 2.82B | 2.77B | 2.55B | 2.35B | Gross Profit |
| 629.80M | 645.60M | 678.90M | 674.80M | 650.80M | 595.30M | EBIT |
| 124.70M | 156.90M | 101.00M | 88.40M | 90.50M | 12.10M | EBITDA |
| 277.40M | 303.10M | 259.20M | 222.80M | 230.20M | 149.70M | Net Income Common Stockholders |
| 72.40M | 66.40M | -7.70M | 14.00M | 46.30M | -41.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 73.47M | 140.40M | 67.00M | 20.10M | 123.70M | 157.10M | Total Assets |
| 2.90B | 3.39B | 3.35B | 3.31B | 3.24B | 3.07B | Total Debt |
| 1.63B | 927.00M | 980.50M | 1.43B | 1.22B | 1.21B | Net Debt |
| 1.56B | 786.60M | 913.50M | 1.41B | 1.09B | 1.05B | Total Liabilities |
| 2.18B | 1.61B | 1.61B | 2.09B | 1.89B | 1.80B | Stockholders Equity |
| 720.06M | 1.78B | 1.74B | 1.22B | 1.34B | 1.27B |
| Cash Flow | Free Cash Flow | ||||
| 110.50M | 127.20M | 58.60M | -400.00K | 87.20M | 192.40M | Operating Cash Flow |
| 237.50M | 205.60M | 129.90M | 106.90M | 148.40M | 245.10M | Investing Cash Flow |
| -52.30M | -5.60M | -61.40M | -193.70M | -158.70M | -108.80M | Financing Cash Flow |
| -153.80M | -126.60M | -21.60M | -16.80M | -23.10M | -18.30M |
BrightView Holdings Technical Analysis
Neutral
13.73
Price Trends
13.22
Positive
14.66
Negative
15.05
Negative
Market Momentum
0.07
Negative
57.33
Neutral
82.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BV, the sentiment is Neutral. The current price of 13.73 is above the 20-day moving average (MA) of 13.06, above the 50-day MA of 13.22, and below the 200-day MA of 15.05, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 82.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BV.
BrightView Holdings Risk Analysis
BrightView Holdings disclosed 47 risk factors in its most recent earnings report. BrightView Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BrightView Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.09B | 21.51 | 7.17% | 0.79% | 5.04% | 31.69% | |
74 Outperform | $11.44B | 29.30 | 7.44% | 2.27% | 3.96% | -17.48% | |
67 Neutral | $1.27B | 80.94 | 4.15% | ― | -1.69% | ― | |
67 Neutral | $2.92B | 37.03 | 4.46% | 1.99% | 2.81% | -67.57% | |
63 Neutral | $2.36B | 549.40 | -9.96% | ― | 12.63% | -364.02% | |
63 Neutral | $4.26B | 11.28 | 5.43% | 215.24% | 4.12% | -8.73% | |
61 Neutral | $8.75B | 25.99 | 11.46% | 1.21% | -5.98% | -46.55% |
* Industrials Sector Average
Performance Comparison
BV
BrightView Holdings
13.73
2.54
22.70%
ABM
ABM Industries
48.31
4.83
11.11%
UNF
UniFirst
176.45
13.83
8.50%
ARMK
ARAMARK Holdings
33.00
1.02
3.19%
RTO
Rentokil Initial
22.76
-2.77
-10.85%
FA
First Advantage
14.28
-2.19
-13.30%
BrightView Holdings Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -14.72% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
BrightView's earnings call reflected strong financial performance with record EBITDA growth and improved operational metrics. Although there are some challenges in the land segment and specific markets, the company's strategic initiatives and positive trends in employee and customer retention suggest a positive outlook.Highlights
Record-Breaking EBITDA Growth
BrightView delivered double-digit EBITDA growth year-over-year and expanded EBITDA margins by 120 basis points, with positive contributions from both segments. The first quarter EBITDA was $52.1 million, an increase of $5.4 million or 12% higher versus the prior year.
Improved Employee Turnover and Customer Retention
The company reported improved employee turnover and higher customer retention rates, which are expected to contribute to land growth in the back-half of the year.
Fleet Refresh and Operational Efficiency
BrightView has aggressively refreshed its fleet, reducing employee turnover and improving service quality. The company is also optimizing work schedules to enhance employee satisfaction.
Strong Development Segment Performance
Revenue in the Development segment increased by 3.5%, driven by the ongoing conversion of a high-quality backlog, resulting in record first-quarter adjusted EBITDA of $17.5 million.
Decreased Leverage
Net leverage was reduced to 2.3 times from 2.9 times in the prior year period, driven by lower debt levels, improved profitability, and enhanced liquidity.
Interest Rate Reduction on Term Loan
BrightView completed a repricing of its $738 million term loan, reducing the interest rate by 50 basis points, resulting in annual cash interest savings of approximately $7.5 million.
Lowlights
Land Segment Revenue Challenges
The land segment has not yet returned to positive core growth, although the company expects this to happen in the second-half of the fiscal year.
Ancillary Revenue Headwinds
Two markets showed headwinds in ancillary revenue, attributed to factors like tree revenue challenges and customer retention issues.
Company Guidance
During BrightView's Q1 2025 earnings call, the company reiterated its fiscal year guidance, projecting record EBITDA and continued margin expansion. BrightView reported double-digit EBITDA growth year-over-year and a 120 basis point increase in EBITDA margins. The company highlighted ongoing initiatives such as improved employee turnover and higher customer retention rates, which are expected to drive core land growth in the second half of the year. Total revenue for Q1 was $599 million, with adjusted EBITDA of $52.1 million, marking a 12% increase from the prior year. BrightView's net leverage improved to 2.3 times, down from 2.9 times a year ago, providing financial flexibility for continued investments. The company also completed a repricing of its $738 million term loan, reducing the interest rate by 50 basis points, which will result in $7.5 million in annual cash interest savings.BrightView Holdings Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
BrightView Holdings Reduces Loan Interest Rate for Savings
Positive
Jan 29, 2025
On January 29, 2025, BrightView Holdings announced that it has successfully repriced its $738 million senior secured term loan, reducing the interest rate to Term SOFR plus 2.00% from the previous Term SOFR plus 2.50%. This move, along with a previous repricing in May 2024, is expected to result in annual cash interest savings of approximately $7.5 million and $35 million through maturity. This strategic financial maneuver is part of BrightView’s commitment to managing its balance sheet effectively and promoting profitable growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.