Black Diamond Group : Rare as diamonds
Black Diamond Group rents modular structures for use as workforce accommodations and temporary work space. Among its customers we can find all type of industries, especially oilfield industry.
Revenues could record important growth rate for the coming years, according to Thomson Reuters’ estimates, accompanied by net margin’s growth. At current price the share is trading 15 times FY 2012 earnings per share, showing investors’ interest on the stock. In add analysts have often revised earnings per share to $1.42.
Graphically the share is in strong bullish trend. This movement is supported by moving averages, especially 20-days. The stock is trading close mid and long-term resistance and we forecast that the share could break out these levels in the next trading sessions by taking advantage from 20 days moving average. If this scenario is confirmed, the share might aim towards new highs.
We suggest to take a long position immediately, with a target price in the area of CAD 28 and a stop loss at CAD 21.3.
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Valuation |
2013e |
2014e |
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PER (Price / EPS)
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13,5x |
11,6x |
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Capitalization / Revenue
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2,64x |
2,38x |
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EV / Revenue
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3,00x |
2,55x |
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EV / EBITDA
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6,95x |
5,78x |
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Yield (DPS / Price)
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3,47% |
3,54% |
| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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29,9% |
30,8% |
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operating laverage (Delta EBIT / Delta Sales)
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1,33x |
1,32x |
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Net Margin (Net Profit / Revenue)
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19,9% |
21,0% |
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ROA (Net Profit / Asset)
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- |
- |
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ROE (Net Profit / Equities)
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18,7% |
19,1% |
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Rate of Dividend
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47,0% |
41,2% |
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