Investing in the stock market is quite tricky. For instance, quality companies with steady cash flows may fail to deliver inflation-beating returns, while loss-making companies could outpace the broader markets on hype and speculation.
One such Canadian stock that has underperformed the broader markets in 2026 is Boyd Group Services (TSX: BYD). Valued at a market cap of $3.5 billion, the TSX stock is down almost 60% from all-time highs, allowing you to buy the dip.
Let’s see why I’m bullish on this dividend stock in November 2026.
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What Boyd Group does and why the stock fell
Boyd runs one of the largest collision repair networks in North America. It operates as Boyd Autobody & Glass and Assured Automotive in Canada, and as Gerber Collision & Glass in the U.S. Its customers are insurers and drivers with damaged cars.
Boyd’s stock slid for two reasons. The first was a drop in repair claims. Insurance premiums rose, so drivers raised their deductibles and skipped small claims, impacting footfall across Boyd’s shops.
The second was a big acquisition. Boyd bought Joe Hudson’s Collision Center, which added debt and plenty of integration work, thereby impacting profit margins.
In Q2 2026, Boyd reported revenue of US$1.01 billion, an increase of 30% year over year. It was the first time the company crossed US$1 billion in quarterly sales. New locations added US$211 million, and the Joe Hudson acquisition contributed US$175 million.
Same-store sales rose 2.9% year over year while industry-wide repairable claims were flat to down 2%.
Notably, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surged 45% to US$136 million, as the margin expanded from 12% to 13.4% over the last 12 months.
Management attributed the improvement in EBITDA margins to two factors.
One is Project 360, a cost-cutting program. The other is faster-than-planned savings from Joe Hudson’s, as Boyd raised its 2026 synergy target to US$35 million from US$20 million.
The painful decision that is now paying off
CEO Brian Kaner admitted Boyd moved fast on integration, and it came at a cost. Switching every Joe Hudson’s shop onto Boyd’s own systems briefly disrupted sales. The South, where Joe Hudson’s has a sizeable presence, spent the first half of the year absorbing that change.
“It was a little bit painful for the organization to do that,” Kaner said on the call. He added that the move now lets Boyd run Joe Hudson’s the same way it runs its existing shops.
Kaner also said Boyd needed deeper visibility into Joe Hudson’s operations than what its legacy systems provided.
Boyd ended Q2 with 1,321 locations, up 33% year over year. It also does more scanning and calibration work in-house, which is a higher-margin service.
An expanding base of profits and cash flow allowed the company to repay debt. It ended Q3 with a net leverage ratio of 2.8 times, down from 3.1 times at the end of 2025.
The bull case for this Canadian dividend stock
Kaner noted that repairing a vehicle three years old or newer costs about US$2,000 more than the average job, and now runs close to US$6,000. Sensors and cameras have increased the cost of repairs. As those cars age, more of them land in Boyd’s shops.
The industry remains highly fragmented, which allows Boyd to target acquisitions and expand earnings over time.
Analysts tracking BYD stock forecast adjusted earnings to expand from $2.78 per share in 2025 to $8.24 per share in 2029. If the Canadian stock is priced at 22 times forward earnings, which is similar to the current multiple, it could more than double within the next two years.
Given consensus price targets, it trades at a discount of 74% in November 2026.
