Review of Boyd Group Services

JUN 12, 2025 - BYD managed to compound shareholder value at around 24% per year on average, mainly through shrew capital allocation skills. BYD’s valuation is the cheapest it has been in years, which is largely because of the meaningful slowdown in store count expansion and negative same-store sales growth in recent quarters. That being said, over the long term, management still believes the company can achieve $5 billion in revenue and $700 million in adjusted EBITDA in FY2029, which represents meaningful growth from today. We think BYD’s current share price could offer decent value for shareholders at the current price if they can manage to execute as planned and resume a double-digit growth trajectory. It is still early to tell, but given management’s confidence in the long-term growth trajectory of the business, we think the story of BYD as a long-term compounder is still intact; however, we could change our opinion if the prospects do not improve. For now, we are still maintaining our rating at “B+”.