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Badger Daylighting request


Valueguy134

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  • 1 year later...

One thing he mentioned was similar companies were being purchased for 1x sales while BAD was currently trading at 4x sales.

 

I don't know the company well, but the obvious question is why are the margins (and ROE) sustainably high. This seems like it should be a cyclical, commodity, capital intensive business. Sometimes management can overcome a bad business. But with the turnover in management, this seems unlikely.

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I don't know the company well, but the obvious question is why are the margins (and ROE) sustainably high. This seems like it should be a cyclical, commodity, capital intensive business.

 

This was the same impression I got when I looked at this business a couple of years ago.

 

Talking with a couple of civil engineers in the field, they really don't have any preference on which company they use for hydro excavating, and they simply choose whoever that's available and cheapest for the given job. Although Badger's scale could be an advantage in ensuring they'd have a truck available whenever someone calls them...

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