Boyd Group Stock Has Risen 520 Percent Over Past Five Years
Sept. 6, 2017—The Boyd Group's stock has been doing very well as of late, reports The Motley Fool. In the last five years of growth, it has risen almost 520 percent.
Even after the dip of 10 percent from its recent high, The Boyd Group—which is part of the "Big 4" in the collision repair market—still delivered total returns of 8 percent in the last 12 months, beating the Canadian market, which only delivered total returns of 6.5 percent.
Since opening its first collision repair facility in Winnipeg, Manitoba, in 1990, The Boyd Group now operates locations in five Canadian provinces under the trade names Boyd Autobody & Glass and Assured Automotive and in 20 U.S. states under Gerber Collision & Glass. The Boyd Group is one of the largest operators of non-franchised collision repair centres in North America in terms of the number of locations, and it’s one of the largest in terms of sales. It is also the second-largest retail auto glass operator in the U.S.
The Boyd Group is a consolidator in the fragmented auto collision repair industry. The company currently has about 364 and 42, respectively, company-operated collision locations in the U.S. and Canada.
The Boyd Group has also improved its operations over time. It expanded its operating margin by 80 percent from 3.6 percent in 2007 to 6.5 percent in 2016.
In the same period, it increased its net income at an annual rate of 29 percent, which translated to a strong growth rate of 18 percent on a per-share basis. Its free cash flow generation was even stronger. In the past nine years, it grew at an annual rate of 36 percent, which was 27 percent on a per-share basis.