BV - BrightView Q1: Divestitures And Lower Leverage Could Imply Undervaluation With Risks

2024-02-07 11:26:38 ET

Summary

• BrightView Holdings recently reported divestitures at a double-digit EBITDA multiple, indicating potential profitability.
• The company's business segments, development and maintenance, generate significant income and are supported by the growth of private non-residential construction.
• Despite risks such as debt obligations and goodwill impairments, BV is undervalued and presents investment opportunities.

BrightView Holdings, Inc. ( BV ) recently reported divestitures at double digit EBITDA multiple, and announced cash re-investments that may bring operating margin growth. Furthermore, recent decreases in the net debt/EBITDA ratio and new announcements with regard to new M&A growth make BV a buy. Even considering risks from the total amount of debt obligations, goodwill impairments, or changes in the environmental regulations, BV does trade undervalued.

BrightView’s Business Segments

According to the last annual report , there are 280 franchises that make up the network of BrightView Holdings throughout the United States, being the leading provider of landscaping services for commercial entities in the country....

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