Q: Hi , what is your take on Badger? Buy, sell or hold? Thanks.
Alnoor
Alnoor
5i Research Answer:
EPS of $0.42 met estimates and revenues of $163.5M missed estimates of $166.02M. Revenues of $143.2M increased by 25.5%, and its gross margins improved from 18.4% in the prior year to 22.9%. Adjusted EBITDA grew from $10.7M in the prior year to $24.0M, alongside an expansion in its Adjusted EBITDA margin. It trades at an OK valuation, but does have some debt creep, and profit margins are fairly thin. We would be OK with moving on from BDGI, and would prefer a name such as WSP or TIH today.