Is it a good company at a reasonable price? This company is growing, but rather unevenly, but it is growing. The risk level is high on this stock. I like the dividend yield tests because it tells you a lot about how people at a company think about their company. The stock price might still be reasonable, but if you buy, you should be cautious of the risks.
I do not own this stock of Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BDGIF). I started to follow this stock after reading a couple of articles in February 2012 in the G&M that talked about the company. The first article looked at what the pros who manage small-cap funds are buying. Badger was one of 10 stocks mentioned and it looked like an interesting stock. It is a dividend paying small cap. The second article looked at why stocks might appeal to a conservative investor looking for income.
When I was updating my spreadsheet, I noticed the US symbol is now BDGIF. It used to be BADFF. I do not know when this change was made. I noticed that the stock price has increased by 58% in 2025. This is a nice increase and will give people who bought this stock in the last 5 or 10 years, a better return than they received at the end of 2024.
If you had invested in this company in December 2014, for $1,005.10 you would have bought 38 shares at $26.45 per share. In December 2024, after 10 years you would have received $204.78 in dividends. The stock would be worth $1,363.44. Your total return would have been $1,568.22. This would be a total return of 4.84% per year with 3.10% from capital gain and 1.74% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $26.45 | $1,005.10 | 38 | 10 | $204.78 | $1,363.44 | $1,568.22 |
The current dividend yield is low with dividend growth low. The current dividend yield is low (under2%) at just 1.40%. The 5, 10 and historical median dividend yields are also low at 1.91%, 1.65%, and 1.99%. The dividend growth is low (below 8% per year) at 4.8% per year over the past 5 years. The last dividend increase was in 2025 and it was for 4.2%.
The Dividend Payout Ratios (DPR) are generally good. The DPR for 2024 for Earnings per Share (EPS) is good at 36% with 5 year coverage high at 67%. The DPR for 2024 for Adjusted Operations Cash Flow (AOCF) is good at 10% with 5 year coverage at 16%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 10% with 5 year coverage at 14%. The DPR for 2024 for Free Cash Flow (FCF) is too high at 74% with 5 year coverage at 93%. But there is no agreement on what the FCF is. The range for 2024 is from $35.2M to $69.6M. My calculation used the lower figure.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 35.62% | 67.21% |
| AOCF | 9.69% | 16.42% |
| CFPS | 9.63% | 13.91% |
| FCF | 73.64% | 93.18% |
Debt Ratios are generally good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.20 and currently at 0.16. The Liquidity Ratio for 2024 is fine at 1.43 and 1.56 currently. If you added in Cash Flow after dividends, the ratios are good at 2.32 and currently at 2.59. The Debt Ratio for 2024 is good at 1.63 and 1.59 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.59 and 1.59 and currently at 2.70 and 1.70.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.20 | 0.16 |
| Intang/GW | 0.03 | 0.02 |
| Liquidity | 1.43 | 1.56 |
| Liq. + CF | 2.32 | 2.59 |
| Debt Ratio | 1.63 | 1.59 |
| Leverage | 2.59 | 2.70 |
| D/E Ratio | 1.59 | 1.70 |
The Total Return per year is shown below for years of 5 to 27 to the end of 2024 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 4.84% | 2.20% | 0.42% | 1.78% |
| 2014 | 10 | 7.07% | 4.84% | 3.10% | 1.74% |
| 2009 | 15 | 3.59% | 18.77% | 14.43% | 4.35% |
| 2004 | 20 | 7.07% | 13.29% | 9.55% | 3.74% |
| 1999 | 25 | 14.52% | 11.01% | 3.51% | |
| 1997 | 27 | 10.77% | 8.46% | 2.31% |
The Total Return per year is shown below for years of 5 to 20 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 2.72% | -0.46% | -2.25% | 1.79% |
| 2014 | 10 | 4.78% | 1.87% | 0.23% | 1.65% |
| 2009 | 15 | 1.41% | 16.35% | 11.95% | 4.40% |
| 2004 | 20 | 6.12% | 14.37% | 9.51% | 4.85% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 17.67, 21.65 and 22.64. The corresponding 10 year ratios are 17.51, 22.35 and 27.21. The corresponding historical ratios are 11.54, 15.82 and 19.23. The current ratio is 20.16 based on a stock price of $53.40 and EPS estimate for 2025 of $2.65. The current ratio is between the low and median ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I also have Adjusted Operations Cash Flow (AOCF). The 5-year low, median, and high median Price/ Adjusted Operations Cash Flow Ratios are 5.42, 7.27 and 8.34. The corresponding 10 year ratios are 6.40, 8.31 and 10.60. The corresponding historical ratios are 6.60, 8.71 and 10.82. The current ratio is 6.71 based on a stock price of $53.40 and AOCF for the last 12 months of $7.96. The current ratio is between the low and median ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $25.49. The 10-year low, median, and high median Price/Graham Price Ratios are 1.57, 2.05 and 2.47. The current P/GP Ratio is 2.10 based on a stock price of $53.40. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 3.44. The current ratio is 4.90 based on a Book Value of $367.7M, Book Value per Share of $10.90, and a stock price of $53.40. The current ratio is 42% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I also have a Book Value per Share estimate for 2025 of $12.43. This implies a ratio of 4.30 and a Book Value of $419.4M. This ratio is 25% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 10.07. The current ratio is 7.79 based on Cash Flow per Share estimate for 2025 of $6.858, Cash Flow of $231.4M and a stock price of $53.40. This ratio is 23% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 1.99%. The current dividend yield is 1.40% based on dividends of $0.743 and a stock price of $53.40. The current dividend yield is 29% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median dividend yield of 1.65%. The current dividend yield is 1.40% based on dividends of $0.743 and a stock price of $53.40. The current dividend yield is 15% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10-year median Price/Sales (Revenue) Ratio is 1.94. The current P/S Ratio is 1.64 based on Revenue estimate for 2025 of $805M, Revenue per Share of $23.86 and a stock price of $53.40. The current ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price could be reasonable, but certainly at the high end. The 10 year dividend yield test says that the stock price is reasonable but above the median. The P/S Ratio test is saying that the stock price is reasonable and below the median. The rest of the testing ranges from cheap to expensive. The Graham Test is a good one and it says that the stock price is reasonable and below the median.
When I look at analysts’ recommendations, I find Strong Buy (3), Buy (2), and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $58.64 with a high of $63.00 and low of $50.00. The consensus 12 month stock price implies a total return of 11.22% with 9.81% from capital gains and 1.40% from dividends based on a current stock price of $53.40.
There are few analysts on Stock Chase covering this stock. The one for this year calls it a buy. The ones for last year called it a buy also. Christopher Liew on Motley Fool says that this company has had a great start to its year with the June quarterly report. Karen Thomas on Motley Fool says that this is a stock to buy and hold for the long term. The company put out via The Canadian Press a press release on their 2024 annual results. The company put out a Press Release on their second quarter of 2025.
Simply Wall Street via Yahoo Finance put out a positive report on this stock. They have one warning of has a high level of debt.
Badger Infrastructure Solutions Ltd is North America's provider of non-destructive excavating and related services, with operations in both the United States and Canada. Badger's two reportable segments are Canada and the United States, which is the key revenue generating market. Its web site is here Badger Infrastructure Solutions Ltd.
The last stock I wrote about was about was Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more. The next stock I will write about will be GFL Environmental Inc (TSX-GFL, NYSE-GFL) ... learn more on Wednesday, August 20, 2025 around 5 pm. Tomorrow on my other blog I will write about Automakers and Subscriptions.... learn more on Tuesday, August 19, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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