Concrete Pumping has been treading water for the past six months, recording a small return of 4% while holding steady at $7.20. However, the stock is beating the S&P 500’s 2.5% decline during that period.
Is there a buying opportunity in Concrete Pumping, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free.
Why Is Concrete Pumping Not Exciting?
Even with the strong relative performance, we're cautious about Concrete Pumping. Here are three reasons why BBCP doesn't excite us and a stock we'd rather own.
1. Core Business Falling Behind as Demand Plateaus
In addition to reported revenue, organic revenue is a useful data point for analyzing Construction and Maintenance Services companies. This metric gives visibility into Concrete Pumping’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.
Over the last two years, Concrete Pumping failed to grow its organic revenue. This performance was underwhelming and implies it may need to improve its products, pricing, or go-to-market strategy. It also suggests Concrete Pumping might have to lean into acquisitions to accelerate growth, which isn’t ideal because M&A can be expensive and risky (integrations often disrupt focus). 
2. EPS Took a Dip Over the Last Two Years
Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.
Sadly for Concrete Pumping, its EPS declined by 17% annually over the last two years while its revenue was flat. This tells us the company struggled to adjust to choppy demand.
3. Free Cash Flow Margin Dropping
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, Concrete Pumping’s margin dropped by 9.7 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Concrete Pumping’s free cash flow margin for the trailing 12 months was 9.8%.
Final Judgment
Concrete Pumping isn’t a terrible business, but it isn’t one of our picks. Following its recent outperformance amid a softer market environment, the stock trades at 15.9× forward P/E (or $7.20 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We're fairly confident there are better investments elsewhere. We’d suggest looking at one of our top software and edge computing picks.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
