![]() ![]() The long term debt is equal to $1.3 billion, which represents a significant part of the total liabilities worth $2 billion. ![]() Total current liabilities stand at $529 million. With account payables worth $159 million, current portion of long term debt of $12 million, and deferred income of $73 million, I don’t believe that the company’s obligations are very relevant in the short term. With these numbers in mind, I would expect some goodwill impairment risks in the coming years. Management reported intangible assets worth $186.4 million and goodwill of $2 billion. With that, the most interesting are the company’s intangible assets. Finally, many analysts also believe that free cash flow could grow from $41 million in 2022 to $158 million in 2024.Īs of June 30, 2022, cash of $26.3 million were reported with accounts receivable worth $422.4 million and total current assets of $683.8 million. It is worth noting that the net income is expected to grow from $18 million in 2022 to $64 million in 2024. From 2022 to 2024, sales growth is expected in the range of 9% to 4%, EBITDA margin would stand at 10%-12%, and the operating margin would stay at 6%-7%. Motivated by the numbers released by management, I discover that investment analysts are also quite optimistic about the future. Management believes that impact from changes in the price of fuel, M&A, and material costs are some of the drivers for the new financial figures. Revenue for Q4 2022 is expected to stand at close to $711-$731 million, with an adjusted EBITDA margin close to 12.6%. New figures could bring significant stock demand to the market, so I believe that investors should have a look at the estimates delivered by management. In a recent presentation, management noted that free cash flow is expected to increase significantly thanks to capital expenditures changes and CARES Act related tax payments. ![]() The company was quite optimistic about Q4 2022. Source: Quarterly Presentation Great Expectations For 2022 From Management And Growing Free Cash Flow Market Estimates The company believes that it is currently targeting an addressable market of $100 billion, and expects to report land market share of close to 2.8% in 2022. If we also consider the total addressable market and growing market share, BrightView looks even more interesting. If we include future revenue guidelines and free cash flow expected, in my view, it is a moment to review the company’s business model. Driven by significant M&A revenue contribution and organic growth of 5.6%, I believe that the market is not correctly reacting to the company’s new financial figures. The company entered my radar after delivering impressive figures in Q3 2022. The range of services offered is quite significant including landscape maintenance and enhancements, tree care, and landscape development. BrightViewīrightView bills itself as the largest provider of commercial landscaping services in the United States. Yes, I do see some risks from the total amount of leverage however, the company is a gift at the current market price. Under conservative conditions that include reinvestment of free cash flow, I believe that the stock is quite undervalued. If we also include great expectations of market analysts about future free cash flow growth and the incoming increase in land market share, BrightView is a must-follow stock. ![]() ( NYSE: BV) recently announced incoming deals in the pipeline worth $700 million and beneficial expectations for the year 2022. ![]()
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