Business & Investment

This TSX stock shows how to make a 1,000% return

Void group service (TSX: BYD) Operates without a franchise Collision Repair Center.. The company’s crash repair center provides car crash and glass repair and replacement services. The Boyd Group also operates automotive glass retail facilities under a variety of trade names, offering claims management services that provide initial notification services for glass, emergency roadside, and loss. Founded in 2002, the company has approximately 5,600 glass providers and 4,700 emergency roadside service providers.

The company has a price-earnings ratio of 94.36, a price-to-book value ratio of 5.18, a dividend yield of 0.26%, and a market capitalization of $ 4.79 billion. In the Boyd Group, the use of debt is very modest, as evidenced by the 0.88 debt-to-capital ratio. The company has excellent performance indicators with an operating margin of 5.65% and a return on equity of 6.81%.

Void group The largest operator of the repair center In North America, in terms of number of locations and sales. The company is a leading retail automotive glass operator, providing collision repair services to individual vehicle owners, fleets, and leasing customers. Most of the company’s revenue comes from premium-paid collision repair services.

The risk associated with investing in the Void Group is the freedom to choose a repair provider available to your company’s customers. In markets where non-government-owned insurers predominate, formal relationships with insurers play an important role in generating company sales. The Boyd Group mitigates this risk by establishing referral contracts with insurance companies and developing and strengthening relationships.

The North American crash repair industry has annual revenues of approximately $ 35-45 billion. This provides a great opportunity for the Void Group to expand and grow shareholder value. The industry is highly fragmented and consists primarily of small, independent, family-owned businesses operating in the local market.

Recently, many multi-unit collision repair operators have grown through acquisitions and have emerged in North America. Automobile dealers make up about 18% of the total collision repair market, and multi-unit operators (including multi-unit car dealers) currently make up about 30% of the total collision repair market.

Despite operating in a highly competitive industry, the Void Group is in a good position to grow through acquisitions. There is a growing tendency among major insurers to develop performance-based measurements when choosing a collision repair partner. The company has been working hard to form partnerships with insurance companies to better manage auto repair claims and increase customer satisfaction.

Insurers have selected void groups to participate in the program based on facility integrity, convenience, appearance, quality of work, customer service, repair costs, cycle times, and other key performance indicators. Among insurers, trading with established players such as Void Group to increase efficiency, reduce the number and complexity of contacts in the crash repair process, and achieve a higher level of consistent performance. Tend to prefer.

In addition to paying attention to the opportunities to accelerate growth through acquisitions of other multi-location businesses, the Boyd Group appears to grow its business through increased same-store sales and acquisitions of new locations.

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Stupid contributor Nikhill Kumar There are no positions in any of the listed stocks. The Motley Fool recommends Boyd Group Services Inc.

This TSX stock shows how to make a 1,000% return This TSX stock shows how to make a 1,000% return

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