Q: What do you think about BDT's prospects in the upcoming Canadian economic landscape?
Their shareholder material suggests they're exposed to renewable and green energy infrastructure projects, extractive sectors like mining (critical minerals), as well as the constant talk about needing to build more homes all seem like tailwinds. I also like the emphasis on health and safety of their workforce which suggests a healthy and mature management team.
From a financial POV they seem to tick a lot of boxes too. Good historical ROE growth, heathy debt levels, a healthy/diversified backlog, growing forward EPS, and approaching $1B in market cap.
What do you think about BDT's prospects?
What's the bear case for BDT?
Their shareholder material suggests they're exposed to renewable and green energy infrastructure projects, extractive sectors like mining (critical minerals), as well as the constant talk about needing to build more homes all seem like tailwinds. I also like the emphasis on health and safety of their workforce which suggests a healthy and mature management team.
From a financial POV they seem to tick a lot of boxes too. Good historical ROE growth, heathy debt levels, a healthy/diversified backlog, growing forward EPS, and approaching $1B in market cap.
What do you think about BDT's prospects?
What's the bear case for BDT?
5i Research Answer:
We think BDT is very interesting at current levels. The focus on electrification projects and recent acquisition of NorCan plays very well into current green trends and BDT wants to become the partner of choice in this space. BDT does not primarily benefit from the residential housing shortage because its focus is more on the infrastructure and institutional side of things. It has some exposure in multifamily residential and high rises, but not houses. Financials are strong with the factors listed in addition to a nice yield and cheap valuation. We think there is a lot to like in BDT coming off a strong 2023. The bear case would be that growth slows, and BDT becomes an income name.