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Boyd Group Services (TSE:BYD)
TSX:BYD
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Boyd Group Services (BYD) AI Stock Analysis

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TSE:BYD

Boyd Group Services

(TSX:BYD)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
C$233.00
▲(9.91% Upside)
Boyd Group Services' overall stock score is driven by moderate financial performance with steady revenue growth but low profitability and high leverage. The positive sentiment from the earnings call, highlighting operational improvements and strategic milestones, provides some optimism. However, the high P/E ratio suggests potential overvaluation, and technical indicators show a lack of strong momentum.
Positive Factors
Gross Margin Expansion
The expansion in gross margins indicates improved operational efficiency and cost management, which can enhance profitability and competitive positioning over the long term.
Project 360 Initiatives
The successful execution of Project 360 initiatives reflects strategic cost-saving measures, which can lead to improved margins and sustainable financial performance.
Location Growth Strategy
The strategic expansion of new locations supports market share growth and revenue diversification, strengthening Boyd's competitive edge in the automotive repair industry.
Negative Factors
High Leverage
High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.
Decline in Net Earnings
A decline in net earnings indicates challenges in maintaining profitability, which could affect investor confidence and the company's ability to reinvest in its operations.
Increased Operating Expenses
Rising operating expenses can erode profit margins and reduce overall profitability, necessitating effective cost management to sustain long-term financial health.

Boyd Group Services (BYD) vs. iShares MSCI Canada ETF (EWC)

Boyd Group Services Business Overview & Revenue Model

Company DescriptionBoyd Group Services Inc. (BYD) is a leading provider of automotive repair services in North America, specializing in collision repair and related services. The company operates through a network of over 400 locations under various brand names, including Gerber Collision & Glass and Boyd Autobody & Glass. BYD focuses on providing high-quality repair solutions for both vehicles and glass, ensuring safety and satisfaction for its customers while leveraging technology and efficiency in its operations.
How the Company Makes MoneyBoyd Group Services generates revenue primarily through its automotive collision repair services, which include bodywork and paint services for vehicles damaged in accidents. The company earns money from insurance claims as many repairs are covered by insurance policies. Key revenue streams include direct payments from customers, insurance reimbursements, and ancillary services such as glass replacement and detailing. Additionally, BYD benefits from partnerships with major insurance companies that direct business to its shops, enhancing customer acquisition and retention. The company's focus on expanding its network and optimizing operational efficiencies further contributes to its profitability.

Boyd Group Services Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a positive sentiment with Boyd Group Services showcasing strong operational improvements and strategic milestones, despite facing industry challenges and a decline in same-store sales. The company demonstrated strong gross margin and adjusted EBITDA performance, driven by successful execution of Project 360 initiatives. However, challenges remain with declines in same-store sales and net earnings, as well as increased operating expenses.
Q2-2025 Updates
Positive Updates
Gross Margin Expansion
Boyd Group Services expanded its gross margins by 120 basis points to 46.8% in Q2 2025, due to internalization of scanning and calibration, improved performance-based pricing, and increased parts margins.
Adjusted EBITDA Margin Achievement
The company's adjusted EBITDA margins increased to 12%, the highest quarterly adjusted EBITDA margin performance since 2023, reflecting a 4.7% year-over-year increase in adjusted EBITDA.
Project 360 Initiatives
Successful execution of the indirect staffing model as part of Project 360, expected to generate $30 million in annual run rate savings starting in Q2 2025, with further savings expected.
Milestone in Location Growth
Achieved the 1,000th location milestone and closed the first MSO acquisition since 2021, with plans to open an average of 8 to 10 new start-up locations per quarter going forward.
Positive Signs in Same-Store Sales
Modest same-store sales growth observed in July, with improvement continuing into the third quarter despite ongoing industry challenges.
Negative Updates
Decline in Same-Store Sales
Same-store sales, excluding foreign exchange, decreased by 2.1% in Q2 2025, despite a 0.2% increase in overall sales to $780.4 million.
Increased Operating Expenses
Operating expenses for Q2 2025 were $271.7 million, representing 34.8% of sales, up from 34.1% in the same period of 2024, due to lower same-store sales and increased facility maintenance costs.
Decline in Net Earnings
Net earnings for Q2 2025 were $5.4 million, down from $10.8 million in the same period of 2024, impacted by increased depreciation and finance costs.
Challenging Industry Volumes
Industry volumes continued to be challenged, with Boyd Group’s sales growth offset by a decline in same-store sales and industry volumes down 6% to 8%.
Company Guidance
During the second quarter of 2025, Boyd Group Services, Inc. demonstrated significant progress in its operational and financial performance, as reported in their recent earnings call. The company expanded its gross margins by 120 basis points to 46.8% and increased its adjusted EBITDA margins to 12%, marking the highest quarterly adjusted EBITDA margin performance since 2023. Boyd also achieved a 0.2% increase in sales to $780.4 million, despite a 2.1% decrease in same-store sales, which was offset by the addition of 53 new locations. Boyd's Project 360 initiative was a key driver of these improvements, helping the company realize $30 million in annual run rate savings from an indirect staffing model and aiming for $40 million in incremental savings from procurement spending by the end of 2026. Additionally, Boyd surpassed its 1,000th location milestone, reflecting its strategic focus on new location growth and market share gains. The company plans to open an average of 8 to 10 new start-up locations per quarter going forward, leveraging a more strategic approach to its go-to-market strategy. Although industry volumes in the second quarter were challenged, Boyd saw a modest improvement in same-store sales growth in July, driven by better customer relationships and an enhanced focus on insurance company clients’ unique performance metrics.

Boyd Group Services Financial Statement Overview

Summary
Boyd Group Services demonstrates steady revenue growth and stable gross margins, but profitability remains a concern with low net margins and declining EBIT margins. The balance sheet reveals high leverage, posing potential risks, although cash flow generation is improving. Overall, the company shows moderate financial health with areas needing attention, particularly in profitability and leverage management.
Income Statement
65
Positive
Boyd Group Services shows moderate revenue growth with a 4.1% increase in TTM, although this is a slowdown from previous years. Gross profit margin remains stable at around 45.8%, but net profit margin is low at 0.44%, indicating challenges in converting revenue into profit. EBIT and EBITDA margins have decreased, reflecting potential operational inefficiencies.
Balance Sheet
60
Neutral
The company has a high debt-to-equity ratio of 1.52, suggesting significant leverage. Return on equity is low at 0.97%, indicating limited profitability relative to shareholder equity. The equity ratio of 33.7% shows moderate financial stability but highlights reliance on debt financing.
Cash Flow
70
Positive
Free cash flow growth is positive at 12.11% in TTM, showing improvement in cash generation. The operating cash flow to net income ratio is 0.68, indicating decent cash conversion efficiency. However, the free cash flow to net income ratio of 0.75 suggests room for improvement in cash profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.07B3.07B2.94B2.45B1.86B1.56B
Gross Profit1.42B1.40B1.34B1.10B828.29M711.22M
EBITDA209.83M208.97M255.20M171.20M119.06M129.92M
Net Income8.08M24.52M86.45M41.33M23.34M43.97M
Balance Sheet
Total Assets2.49B2.46B2.38B2.12B2.01B1.57B
Cash, Cash Equivalents and Short-Term Investments14.68M19.98M22.46M15.20M27.48M60.84M
Total Debt1.26B1.25B1.13B986.96M977.22M597.59M
Total Liabilities1.65B1.63B1.55B1.37B1.29B857.07M
Stockholders Equity839.10M830.07M826.34M753.36M720.39M709.37M
Cash Flow
Free Cash Flow229.26M196.91M284.79M208.97M152.75M201.02M
Operating Cash Flow292.75M270.53M343.21M241.35M183.70M226.33M
Investing Cash Flow-151.17M-197.76M-248.36M-46.50M-348.15M-80.18M
Financing Cash Flow-140.30M-73.99M-87.51M-206.54M131.99M-123.65M

Boyd Group Services Technical Analysis

Technical Analysis Sentiment
Negative
Last Price211.99
Price Trends
50DMA
225.74
Negative
100DMA
216.81
Negative
200DMA
217.23
Negative
Market Momentum
MACD
-1.82
Negative
RSI
41.24
Neutral
STOCH
56.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BYD, the sentiment is Negative. The current price of 211.99 is below the 20-day moving average (MA) of 216.30, below the 50-day MA of 225.74, and below the 200-day MA of 217.23, indicating a bearish trend. The MACD of -1.82 indicates Negative momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BYD.

Boyd Group Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$4.49B21.393.61%1.44%-2.60%-64.22%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
$4.80B432.970.97%0.29%3.65%-86.07%
54
Neutral
$742.44M-4.10%1.96%-8.84%-148.15%
54
Neutral
$6.53B38.70%0.97%-13.78%-115.58%
44
Neutral
C$579.45M-32.1420.23%-20.36%50.19%
44
Neutral
C$1.67B-7.37-26.25%9.12%-182.49%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BYD
Boyd Group Services
211.99
-4.68
-2.16%
TSE:LNR
Linamar
74.75
15.90
27.01%
TSE:MRE
Martinrea International
10.18
-0.62
-5.71%
TSE:DOO
BRP
88.44
21.02
31.17%
TSE:ACQ
AutoCanada
24.51
10.05
69.50%
TSE:NFI
NFI Group Inc
13.82
-1.92
-12.20%

Boyd Group Services Corporate Events

M&A TransactionsPrivate Placements and Financing
Boyd Group Services Prices C$525 Million Note Offering for Acquisition
Neutral
Oct 30, 2025

Boyd Group Services Inc. has announced the pricing of a C$525 million private placement offering of senior unsecured notes due 2030, with an interest rate of 5.50% per annum. The proceeds, along with funds from a previous equity offering, will be used to partially finance the acquisition of Joe Hudson’s Collision Center. This acquisition is expected to close in the fourth quarter of 2025, subject to conditions and regulatory approvals, and will replace interim financing arrangements. The offering is led by a syndicate of underwriters and is expected to close on November 6, 2025.

The most recent analyst rating on (TSE:BYD) stock is a Buy with a C$265.00 price target. To see the full list of analyst forecasts on Boyd Group Services stock, see the TSE:BYD Stock Forecast page.

Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
Boyd Group Services Launches US$780 Million IPO in U.S.
Positive
Oct 29, 2025

Boyd Group Services Inc. has announced a US$780 million initial public offering in the United States, marking its debut on the New York Stock Exchange under the symbol ‘BGSI’. The proceeds from this offering will be used to partially fund the acquisition of Joe Hudson’s Collision Center, enhancing Boyd Group’s market position in the automotive repair industry. If the acquisition does not proceed, the funds will be directed towards debt reduction and future growth opportunities. This move signifies a strategic expansion for Boyd Group, potentially increasing its influence and operational capacity in the North American market.

The most recent analyst rating on (TSE:BYD) stock is a Buy with a C$265.00 price target. To see the full list of analyst forecasts on Boyd Group Services stock, see the TSE:BYD Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Boyd Group Expands U.S. Presence with Strategic Acquisition
Positive
Oct 29, 2025

Boyd Group Services Inc. has announced its acquisition of Joe Hudson’s Collision Center, adding 258 locations and strengthening its position in the U.S. Southeast collision repair market. This acquisition is expected to generate significant synergies, enhance Boyd’s financial performance, and expand its operational footprint. Concurrently, Boyd reported positive preliminary Q3 2025 results, with a 5% year-over-year sales increase and a 21-23% rise in Adjusted EBITDA, reflecting strong growth despite industry challenges.

The most recent analyst rating on (TSE:BYD) stock is a Buy with a C$265.00 price target. To see the full list of analyst forecasts on Boyd Group Services stock, see the TSE:BYD Stock Forecast page.

Financial Disclosures
Boyd Group Services to Announce Q3 2025 Results
Neutral
Oct 29, 2025

Boyd Group Services Inc. announced it will release its fiscal 2025 third quarter results on November 12, 2025, before the markets open. A conference call hosted by key executives will follow to discuss the financial results, inviting all interested parties to participate. This announcement underscores Boyd Group’s commitment to transparency and engagement with stakeholders, potentially impacting its market perception and investor relations.

The most recent analyst rating on (TSE:BYD) stock is a Buy with a C$265.00 price target. To see the full list of analyst forecasts on Boyd Group Services stock, see the TSE:BYD Stock Forecast page.

Dividends
Boyd Group Services Declares Q3 2025 Cash Dividend
Positive
Sep 17, 2025

Boyd Group Services Inc. announced a cash dividend of $0.153 per common share for the third quarter of 2025, payable on October 29, 2025, to shareholders of record as of September 30, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

The most recent analyst rating on (TSE:BYD) stock is a Buy with a C$260.00 price target. To see the full list of analyst forecasts on Boyd Group Services stock, see the TSE:BYD Stock Forecast page.

Private Placements and Financing
Boyd Group Services Closes C$275 Million Note Offering
Positive
Sep 4, 2025

Boyd Group Services Inc. has successfully closed a C$275 million private placement offering of senior unsecured notes due in 2033. The proceeds from this offering will be used to repay existing indebtedness, potentially strengthening the company’s financial position and enhancing its operational flexibility.

The most recent analyst rating on (TSE:BYD) stock is a Hold with a C$239.00 price target. To see the full list of analyst forecasts on Boyd Group Services stock, see the TSE:BYD Stock Forecast page.

Boyd Group Services Inc. Reports Positive Earnings Call
Sep 1, 2025

Boyd Group Services Inc. recently held an earnings call that conveyed a generally positive sentiment, highlighting strong operational improvements and strategic milestones. Despite facing industry challenges and a decline in same-store sales, the company showcased robust gross margin and adjusted EBITDA performance, driven by the successful execution of Project 360 initiatives. However, the company acknowledged challenges with declines in same-store sales and net earnings, as well as increased operating expenses.

Business Operations and StrategyPrivate Placements and Financing
Boyd Group Services Enhances Financial Flexibility with Note Offering and Credit Facility Expansion
Positive
Aug 21, 2025

Boyd Group Services Inc. announced a C$275 million senior unsecured note offering and an amendment and extension of its revolving credit facilities. These financial moves are intended to enhance the company’s financial flexibility, allowing it to pursue its five-year growth and profitability goals. The new notes, with a 5.75% interest rate, are due in 2033, and the revolving credit facilities have been increased to US$575 million with a potential expansion to US$875 million. The proceeds from the offering will be used to repay existing debt, and the changes are expected to positively impact Boyd’s operational capabilities and market positioning.

The most recent analyst rating on (TSE:BYD) stock is a Hold with a C$239.00 price target. To see the full list of analyst forecasts on Boyd Group Services stock, see the TSE:BYD Stock Forecast page.

Boyd Group Services Reports Q2 2025 Financial Results
Aug 14, 2025

Boyd Group Services Inc., a leading operator of non-franchised collision repair centers in North America, has reported its financial results for the second quarter of 2025, highlighting strategic advancements and financial performance. The company, known for its extensive network of repair centers and auto glass services, continues to focus on growth and operational efficiency.

Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Boyd Group Services Reports Q2 2025 Results, Surpasses 1,000 Locations
Positive
Aug 13, 2025

Boyd Group Services Inc. reported a slight increase in sales for the second quarter of 2025, driven by new location growth despite a decline in same-store sales. The company achieved margin expansion through profitability initiatives, including the internalization of scanning and calibration services, and cost reductions from a new indirect staffing model. Boyd’s location count surpassed 1,000, reflecting its strategic growth efforts. The appointment of Brian Kaner as CEO and ongoing cost transformation plans are expected to further enhance profitability, with a target Adjusted EBITDA margin of 14% by 2029.

The most recent analyst rating on (TSE:BYD) stock is a Buy with a C$295.00 price target. To see the full list of analyst forecasts on Boyd Group Services stock, see the TSE:BYD Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 31, 2025