BV

We rate BrightView Holdings, Inc. (BV) as a Hold with a composite score of 52.4/100 at a current price of $13.76. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in quality (70th percentile) and value (70th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (37th percentile) and investment (41th percentile) tempers our overall conviction. We assign a No Moat rating (36/100), Medium uncertainty, and Poor capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

BrightView Holdings, Inc. holds a mid-tier position (#9 of 17) within the Agriculture, Forestry, And Fishing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 52.4/100 places it at rank #1616 in our full 7,333-stock universe. At $1.3B in market capitalization, BrightView Holdings, Inc. is a small-cap player in the Agriculture, Forestry, And Fishing space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue contraction of -17% combined with momentum at the 37th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.

The margin cascade tells an important story: gross margins of 22% (+3.3pp vs sector) narrow to operating margins of 3% (+0.4pp vs sector) and net margins of 0.3%, yielding a gross-to-net conversion rate of 2%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $13.76, BrightView Holdings, Inc. is trading near fair value based on current fundamentals. Our value factor score of 70/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 99.5x (a 800% premium to the sector median of 11.1x), EV/EBITDA of 29.1x (at a premium), P/B of 1.0x, P/S of 0.5x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.

We assign a Medium uncertainty rating to BrightView Holdings, Inc.. The stock presents a balanced risk profile: elevated valuation multiple (P/E 99.5x) that leaves limited margin for error and the combination of leverage (64% D/E) and thin margins (0.3% net) amplifies downside risk. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: elevated valuation multiple (P/E 99.5x) that leaves limited margin for error; the combination of leverage (64% D/E) and thin margins (0.3% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 44th percentile and quality factor at the 70th percentile provide a quantitative summary of the overall risk landscape.

We identify limited risk mitigants at this time, which contributes to our medium uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.

We rate BrightView Holdings, Inc.'s capital allocation as Poor. Key concerns include low returns on equity (1.0%), weak asset returns (ROA 0.4%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — BrightView Holdings, Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, BrightView Holdings, Inc. receives a Hold rating with a composite score of 52.4/100 (rank #1616 of 7,333). Our quantitative framework assigns a No Moat (36/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 52/100.

Our analysis supports a neutral stance on BrightView Holdings, Inc.. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.