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BrightView Holdings (BV)
NYSE:BV
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BrightView Holdings
(NYSE:BV)
74Outperform
Positive Factors
Financial Performance
Shares ended the day up 8% following a strong second-quarter beat and raised outlook on both EBITDA and free cash flow for the full year.
Operational Efficiency
Employee turnover and customer retention are improving, with frontline turnover down 20% over the last 5 quarters.
Strategic Initiatives
BrightView continues to execute on its strategic playbook, including converting development work into land maintenance contracts and investing in employee retention.
Negative Factors
Discretionary Spending
About 10% of the business is more discretionary and could take a step back in the face of a more difficult macro environment.
Macroeconomic Environment
Management chose to leave its revenue outlook unchanged due to elevated macro uncertainty, which could impact enhancement-related work.
Revenue Performance
Total revenue missed expectations by 2% due to softer snow and landscape maintenance activity.
BrightView Holdings (BV) vs. S&P 500 (SPY)
Market Cap
$1.59B
Dividend YieldN/A
Average Volume (3M)689.64K
Price to Earnings (P/E)85.8
Beta (1Y)1.17
Revenue Growth-2.85%
EPS Growth-108.99%
CountryUS
Employees19,100
SectorIndustrials
Sector Strength89
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding95,300,000
10 Day Avg. Volume891,037
30 Day Avg. Volume689,639
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)0.85
Price to Sales (P/S)0.00
P/FCF Ratio13.64
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit3.63
Enterprise Value/Ebitda1.86
Forecast
1Y Price Target
$18.75Price Target Upside13.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
BrightView Holdings Business Overview & Revenue Model
Company DescriptionBrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 13,000 office parks and corporate campuses, 8,000 residential communities, and 450 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.
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 displays mixed financial performance with stable cash flow and a solid balance sheet. However, declining revenue and inconsistent free cash flow growth are concerns. The company benefits from steady profitability margins and manageable debt levels, but must focus on revenue growth and cost management for future health.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 |
| 318.10M | 314.20M | 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 | ||||
| 177.30M | 140.40M | 67.00M | 20.10M | 123.70M | 157.10M | Total Assets |
| 3.36B | 3.39B | 3.35B | 3.31B | 3.24B | 3.07B | Total Debt |
| 970.90M | 927.00M | 980.50M | 1.43B | 1.22B | 1.21B | Net Debt |
| 793.60M | 786.60M | 913.50M | 1.41B | 1.09B | 1.05B | Total Liabilities |
| 1.61B | 1.61B | 1.61B | 2.09B | 1.89B | 1.80B | Stockholders Equity |
| 1.75B | 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
Positive
16.58
Price Trends
13.62
Positive
14.34
Positive
15.18
Positive
Market Momentum
0.84
Negative
76.87
Negative
91.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BV, the sentiment is Positive. The current price of 16.58 is above the 20-day moving average (MA) of 14.59, above the 50-day MA of 13.62, and above the 200-day MA of 15.18, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 76.87 is Negative, neither overbought nor oversold. The STOCH value of 91.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.32B | 23.13 | 7.17% | 0.73% | 5.04% | 31.69% | |
75 Outperform | $11.67B | 29.92 | 7.44% | 2.21% | 3.96% | -17.48% | |
74 Outperform | $1.59B | 85.78 | 2.56% | ― | -2.85% | -108.99% | |
74 Outperform | $3.10B | 549.40 | -13.59% | ― | 37.97% | -499.29% | |
74 Outperform | $3.23B | 40.97 | 4.46% | 1.90% | 2.81% | -67.57% | |
71 Outperform | $10.30B | 30.26 | 11.77% | 1.02% | -3.47% | -45.03% | |
64 Neutral | $4.40B | 12.09 | 5.26% | 250.03% | 4.08% | -11.05% |
* Industrials Sector Average
Performance Comparison
BV
BrightView Holdings
16.45
2.99
22.21%
ABM
ABM Industries
52.30
6.54
14.29%
UNF
UniFirst
181.91
16.42
9.92%
ARMK
ARAMARK Holdings
38.33
5.16
15.56%
RTO
Rentokil Initial
23.37
-3.53
-13.12%
FA
First Advantage
18.26
1.92
11.75%
BrightView Holdings Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q2-2025)
| % Change Since: 14.03%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, record-breaking EBITDA, and successful strategic initiatives like share repurchase and employee retention programs. However, concerns about macroeconomic uncertainties and their potential impact on customer behavior and revenue were noted.Q2-2025 Updates
Positive Updates
Record-Breaking EBITDA and Margin Growth
The company reported record Q2 adjusted EBITDA of $73.5 million, a 13% increase from the previous year, with margins expanding by 150 basis points to 11.1%.
Improved Employee Metrics
Frontline turnover improved significantly, demonstrating the success of reinvestment in employee programs like paid time off and fleet refreshment.
Successful Share Repurchase Program
The company launched a $100 million share repurchase program, indicating strong balance sheet management and confidence in undervalued share prices.
Strong Development Segment Performance
Development segment achieved a record Q2 adjusted EBITDA of $17.1 million, with margin expansion of 410 basis points due to backlog conversion and operational efficiencies.
Raised Full-Year Guidance
Guidance for adjusted EBITDA increased to $355 million, with expected margin improvement in both maintenance and development segments.
Negative Updates
Macroeconomic Uncertainty Impact
Customer hesitation and potential delays in discretionary spending due to macroeconomic uncertainties, including tariffs and inflationary pressures.
Impact of Snow on Core Land Revenue
Increased snowfall reduced land revenue by about 2%, impacting the ability to execute core land activities during the quarter.
Company Guidance
During BrightView's fiscal 2025 Q2 earnings call, the company reported record adjusted EBITDA for both the quarter and year-to-date, leading to an increase in their full-year guidance for adjusted EBITDA, margins, and free cash flow. The company highlighted a 170 basis point improvement in customer retention on a trailing 12-month basis, driven by enhanced employee engagement and reduced frontline turnover. BrightView's total revenue for the quarter was $663 million, a 3% increase when adjusted for the disposal of non-core assets. The snow segment saw a $22 million increase in core revenue, while the development segment's revenue rose by 5%. Adjusted EBITDA for Q2 reached $73.5 million, up 13% year-over-year, with the maintenance segment's margins expanding by 60 basis points and development margins by 410 basis points. BrightView also reported strong adjusted free cash flow of $67 million for the first half, despite increased capital expenditures on fleet and equipment, resulting in a net leverage of 2.1x, down from 2.4x in the prior year.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.