GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GFL - CA36168Q1046 - Common Stock
60.98 CAD
+0.1 (+0.16%)
We assign a fundamental rating of 3 out of 10 to GFL. GFL was compared to 24 industry peers in the Commercial Services & Supplies industry. While GFL is still in line with the averages on profitability rating, there are concerns on its financial health. GFL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year GFL was profitable.
- In the past year GFL had a positive cash flow from operations.
- GFL had negative earnings in each of the past 5 years.
- Each year in the past 5 years GFL had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of GFL (18.38%) is better than 95.83% of its industry peers.
- The Return On Equity of GFL (46.75%) is better than 100.00% of its industry peers.
- GFL has a Return On Invested Capital (1.79%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GFL is below the industry average of 5.81%.
- The 3 year average ROIC (1.09%) for GFL is below the current ROIC(1.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.38% | ||
| ROE | 46.75% | ||
| ROIC | 1.79% |
ROA(3y)-1.87%
ROA(5y)-3.18%
ROE(3y)-5.77%
ROE(5y)-9.45%
ROIC(3y)1.09%
ROIC(5y)N/A
1.3 Margins
- GFL has a better Profit Margin (51.46%) than 100.00% of its industry peers.
- GFL has a Operating Margin of 6.26%. This is in the better half of the industry: GFL outperforms 62.50% of its industry peers.
- GFL's Gross Margin of 20.38% is on the low side compared to the rest of the industry. GFL is outperformed by 62.50% of its industry peers.
- GFL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.26% | ||
| PM (TTM) | 51.46% | ||
| GM | 20.38% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y25.55%
GM growth 5Y15.32%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GFL is destroying value.
- GFL has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GFL has more shares outstanding
- The debt/assets ratio for GFL is higher compared to a year ago.
2.2 Solvency
- GFL has an Altman-Z score of 1.53. This is a bad value and indicates that GFL is not financially healthy and even has some risk of bankruptcy.
- GFL's Altman-Z score of 1.53 is in line compared to the rest of the industry. GFL outperforms 50.00% of its industry peers.
- GFL has a debt to FCF ratio of 34.89. This is a negative value and a sign of low solvency as GFL would need 34.89 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 34.89, GFL is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- GFL has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
- GFL's Debt to Equity ratio of 1.00 is in line compared to the rest of the industry. GFL outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 34.89 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.25
WACC7.15%
2.3 Liquidity
- GFL has a Current Ratio of 0.69. This is a bad value and indicates that GFL is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.69, GFL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- GFL has a Quick Ratio of 0.69. This is a bad value and indicates that GFL is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.69, GFL perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The earnings per share for GFL have decreased by -6.20% in the last year.
- The Earnings Per Share has been growing by 24.56% on average over the past years. This is a very strong growth
- The Revenue for GFL has decreased by -10.87% in the past year. This is quite bad
- The Revenue has been growing by 18.63% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.2%
EPS 3Y24.56%
EPS 5YN/A
EPS Q2Q%-30.3%
Revenue 1Y (TTM)-10.87%
Revenue growth 3Y12.47%
Revenue growth 5Y18.63%
Sales Q2Q%-15.91%
3.2 Future
- The Earnings Per Share is expected to grow by 19.32% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.51% on average over the next years.
EPS Next Y-28.74%
EPS Next 2Y12.34%
EPS Next 3Y20.02%
EPS Next 5Y19.32%
Revenue Next Year-16.08%
Revenue Next 2Y-5.13%
Revenue Next 3Y-1.18%
Revenue Next 5Y3.51%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- GFL is valuated quite expensively with a Price/Earnings ratio of 98.35.
- GFL's Price/Earnings is on the same level as the industry average.
- GFL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 58.15, the valuation of GFL can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GFL is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of GFL to the average of the S&P500 Index (25.98), we can say GFL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.35 | ||
| Fwd PE | 58.15 |
4.2 Price Multiples
- GFL's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GFL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.03 | ||
| EV/EBITDA | 16.3 |
4.3 Compensation for Growth
- The decent profitability rating of GFL may justify a higher PE ratio.
- A more expensive valuation may be justified as GFL's earnings are expected to grow with 20.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.34%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.13%, GFL is not a good candidate for dividend investing.
- GFL's Dividend Yield is comparable with the industry average which is at 1.00.
- With a Dividend Yield of 0.13, GFL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
- GFL has been paying a dividend for over 5 years, so it has already some track record.
- GFL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- GFL pays out 0.87% of its income as dividend. This is a sustainable payout ratio.
DP0.87%
EPS Next 2Y12.34%
EPS Next 3Y20.02%
GFL ENVIRONMENTAL INC-SUB VT / GFL.CA FAQ
Can you provide the ChartMill fundamental rating for GFL ENVIRONMENTAL INC-SUB VT?
ChartMill assigns a fundamental rating of 3 / 10 to GFL.CA.
What is the valuation status for GFL stock?
ChartMill assigns a valuation rating of 2 / 10 to GFL ENVIRONMENTAL INC-SUB VT (GFL.CA). This can be considered as Overvalued.
How profitable is GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) stock?
GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) has a profitability rating of 6 / 10.
How financially healthy is GFL ENVIRONMENTAL INC-SUB VT?
The financial health rating of GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) is 1 / 10.
What is the expected EPS growth for GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) stock?
The Earnings per Share (EPS) of GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) is expected to decline by -28.74% in the next year.