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  5. BDT: Given the big push by gov't to build more homes, and given the shortage of same, will this be a good time to look at Bird? [Bird Construction Inc.]
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Q: Given the big push by gov't to build more homes, and given the shortage of same, will this be a good time to look at Bird?
Thanks
Asked by steve on December 19, 2023
5i Research Answer:

BDT is up significantly year-to-date by with a total return at nearly ~84%. Despite the strong performance, forward price-to-earnings is still cheap at just 9.3x. BDT has been awarded contracts more than $130M to grow its portfolio in Ontario and provide multi-year revenue streams. BDT also recently approved a 30% increase to it dividend on the back of positive 2024 outlook. Margins are improving and growth is continued to be displayed across revenue and EPS along with a positive outlook on both fronts. The balance sheet is decent with some debt. BDT is not in the  residential home building space as it focusses more on industrial/commercial building. We still like it as a small cap construction company and the valuation is cheap which makes it even more attractive.