Boyd Group Services Inc. is a Canadian company that controls Boyd Group Inc. and its subsidiaries. Boyd operates in Canada and the United States with over 740 locations. It came into being after the Boyd Group Income Fund (TSE: BYD.UN) successfully completed the transformation from an income trust to a corporate structure as Boyd Group Services Inc. (TSE: BYD).

The company offers collision repair, glass repair and replacement services. It also offers glass, roadside emergency, and initial notification of lost service. It operates more than 32,000 stores in operation.

The company operates under the trade names Boyd Autobody & Glass and Assured Automotive in Canada and Gerber Collision & Glass. It is the second largest auto glass operator in the US

The Boyd Group generates 10 to 15% of its sales in Canada, the rest in the USA. The company’s businesses include Boyd Bodies and Glass, Gerber Collisions and Glass, Gerber National Claim Services, Glass America, and Assured Automotive.

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Investment data

Sales growth and market presence

The group is one of the largest operators of non-franchised collision repair centers in North America by number of locations and revenue. Over the years the company has successfully increased its share of the auto glass repair and replacement business.

It operates in a recession-resistant industry. It earns more than 90% of its revenue from insurance companies (mostly state owned) while only 10% is paid by other customers, which improves the overall visibility of its cash flows. It maintains close relationships with insurance carriers. The company provides collision repair services to insurance companies, individual vehicle owners, and fleet and leasing customers. Boyd’s sales are up nearly 21% CAGR in the past decade.

The business is growing both organically and through acquisitions. Boyd’s large scale, prudent management and strong balance sheet means it is well positioned to capitalize on great acquisition opportunities. It is also well positioned to benefit from the direct repair programs (DRPs) that have been set up between insurance companies and collision repair shops in Canada and the United States

In 2015, Boyd launched and implemented its Wow Operating Way process improvement initiative to improve customer satisfaction, repair cycle times and operational metrics.

Boyd has been in the business for nearly 30 years and has built a reputation for impeccable customer service and quality, which are vital to sustaining sales growth in the same business. The aim is to increase sales in the same business by expanding the range of products and services in all markets.

The company added over 22 new locations and 35 YTDs in the last quarter. First quarter sales were down ~ 10%. All temporary reception centers in the US will be converted into full production centers to meet the increasing demand expected in 2021. Boyd will also focus on increasing the capacity of the technicians and re-launching the initiatives to address the capacity constraints of the technicians in the near future.

It is also focused on increasing its share of the auto glass repair and replacement business. The glass business is an asset-light model and is integrated into the collision business.


The Boyd Group is a dividend aristocrat. The company has a low annual return of 0.26% and a low payout ratio of 28%. Boyd most recently increased its dividend by more than 4% in 2019 and has increased its dividend to ~ 5% CAGR over the past decade. Due to the high cash flow from operations, the company has increased its dividend.

The company seeks positive growth through a combination of organic growth as well as acquisitions and new business development. The company is well positioned to take advantage of major acquisition opportunities through its strong balance sheet and conservative payout ratio. The company is expected to double in size over the five-year period from 2021 to 2025.

The company’s earnings have increased more than 12% CAGR over the past decade. The company is well positioned to benefit from attractive acquisition opportunities in the highly fragmented market. The collision repair market in the United States is estimated to have annual sales of ~ $ 41 billion.

Nearly 80% of the industry is controlled by independent repair shops, and Boyd has a good track record of acquiring and successfully integrating small collision repair centers across North America. It is well positioned to benefit from industry consolidation trends. Boyd has more than $ 1 billion in cash and sufficient credit facilities to respond to opportunities. The acquisition pipeline as well as the locations on the green field and on the fallow land are still good.

The group is the only publicly traded company in the auto crash repair industry in North America. The company should benefit from its large US presence, healthy balance sheet, and growing free cash flows.

Boyd (BYD) Historical yield
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The collision repair industry in North America is very competitive. The company competes with other collision repair operators in multiple locations in different markets. It also faces competition from other automotive companies.

However, Boyd’s significant customer and supplier relationships give him a compelling competitive edge over his competitors. The company is known for its critical customer service, quality, and integrity.

Bottom line

The company’s focus on improving sales growth in the same business, as well as acquiring and developing business locations for collision repairs, should drive future growth over the long term. The company is poised to capitalize on the highly fragmented industry as it has a strategy of growing through acquisitions. It is also well positioned to take advantage of DRP trends from major and regional insurers.

BYD versus TSX versus SP500 2021
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Boyd (BYD) Historic PE
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