Thanks. Alnoor
BDGI operates as a construction service company and is now trading at 17.8x times' Forward P/E. In the last few years, growth was quite cyclical, although the long-term trend is positive, with 5-year revenue growth 9% on average. The balance sheet is OK, with a net debt of $200M and net debt/EBITDA is currently around 1.8x. The company has been reinvesting quite heavily over the years for growth, and has increased its US-based business substantially. Based on consensus estimates, sales are expected to grow by 10% on average over the next few years. The stock has done well this year, and it is still tied to the energy sector somewhat. The dividend is well covered by cash flow. We think it is a decent company, but at 21X earnings there is a premium valuation. We would prefer it a bit cheaper to reflect its cyclicality and slightly high debt level.