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  5. BYD: Long time holder of BYD. [Boyd Group Services Inc.]
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Investment Q&A

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Q: Long time holder of BYD. Currently have BYD at 1.9% and CPRT at 1%. CPRT has really outperformed BYD over many timeframes. BYD is consumer cycl. and CPRT is industrial. I'm up 20% on BYD and 39% on CPRT. BYD has been a frustrating stock over the past few years but CPRT has shown resiliency and stable compounding growth. Thoughts on the BYD earnings and both companies going forward? Continue to hold both or I was thinking of selling BYD and adding to my CPRT. Thoughts? Thanks!
Asked by Keith on May 20, 2025
5i Research Answer:

We think CPRT is solid. It is significantly larger, and as noted has been a good performer. We cannot direct answers personally, but we would be comfortable with a bigger position in CPRT over BYD. CPRT is expensive at 40X earnings, but has shown reasons for its premium. BYD earnings missed estimates on both sales and earnings, and earnings fell year over year. Same store sales declined 2.8%. It added nine locations. While optics look bad, BYD is actually performing better than the industry, which has experienced declines close to 10%. It plans to double EBITDA in four years and has implemented cost savings efforts. The stock has a great longer term history (up 3,500% in 20 years) and we think some exposure can still make sense. But we would be comfortable flipping weightings here 2% CPRT and 1% BYD.