Risk factor
Low price volatility
Profitability factor
Overvalued vs peers
About
Badger Infrastructure Solutions Ltd., operating across Canada and the United States, specializes in delivering non-destructive excavation services and a comprehensive suite of related infrastructure solutions. At the core of its operations is the proprietary Badger Hydrovac technology, which employs a pressurized water stream to safely disintegrate and remove soil, minimizing environmental impact and damage to underground utilities. The company offers a diverse range of applications, including precision excavation for visual confirmation of buried lines (daylighting and potholing), creating test holes for directional drilling and subsurface utility engineering, and facilitating pipeline and utility crossings. It also handles debris removal from various sites, such as frac tanks, road and box culverts, and pipe-rammed casings, alongside general material removal from inside structures. Furthermore, Badger provides crucial support for pipeline projects, performing excavations for crossings, tie-ins, hydro probing, addressing utility conflicts, and responding to oil and fuel spills. It also constructs service repair pits for gas, electric, water main, and telecom line maintenance. Additional specialized services include the installation of anodes and shoring, tank cleanouts, and various trenching operations like slot trenching and exposing existing cables or conduits. The company is also proficient in digging pole and piling holes for a wide array of uses, from utility and traffic signal poles to light standards and well monitor installations. Beyond excavation, Badger Infrastructure Solutions offers extensive inspection and maintenance services for pipelines and sewers, encompassing air and mandrel testing, CCTV inspections, laser profiling, flushing, cleaning, and locating mainline and lateral lines. They also conduct reaming and concrete removal, sewer and main line locating, and smoke testing for sewers, in addition to providing disaster response and general locating solutions. Founded in 1992 and headquartered in Calgary, Canada, the company rebranded from Badger Daylighting Ltd. to Badger Infrastructure Solutions Ltd. in May 2021.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is reasonably priced on P/E, of fair value on EV/E
Target Price
The average target price of BDGI.TO is 91 and suggests 2% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to dec