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  5. BYD: What should we do about BYD? [Boyd Group Services Inc.]
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Investment Q&A

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Q: What should we do about BYD? According to BNNbloomberg website BYD had $4.37 of earnings in the past 12 months. BYD still trades at 'beaten down" price of $170 so the PE is in the high 30's. When BYD had rapid growth a high multiple was warranted but growth has tapered off. Do you think that is temporary? If so, why? In the past I have purchased down under 180 and I have done well. But I am concerned that the market might not want to pay such ahigh PE for a company where growth may be more difficult going forward. There are still lots of mom and pop autobody shops that not to find a buyer so I am still some what positive on BYD. Is BYD having to pay too much to get owners to sell? Organic growth is no that strong with BYD is without their bolt on aquisitions I am not sure they can continue the grow that much. Do you agree?
Asked by Paul on April 09, 2026
5i Research Answer:

Its forward earnings are 27X but its trailing P/E is 152X, analyst estimates are calling for 64% earnings growth next year, mostly driven by base effects (2025 EPS was depressed due to acquisition costs) and the Joe Hudson's acquisition adds a full year of revenue in 2026 vs. almost zero in 2025. The collision repair industry hit a rough patch last year, with claims volume down, but they have since been recovering which would benefit BYD. We think there is still a long runway in the collision industry's fragmented runway, and a potential catalyst is if Project 360 expands the company's overall margins in the coming years. We think that momentum can eventually turnaround, but currently it is seeing some minor headwinds and we would prefer to wait until the name finds some support, and earnings estimates continue to expand before adding here. We would be comfortable holding here.