GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) Stock Fundamental Analysis
TSX:GFL - Toronto Stock Exchange - CA36168Q1046 - Common Stock - Currency: CAD
GFL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GFL had positive earnings in the past year.
GFL had a positive operating cash flow in the past year.
In the past 5 years GFL always reported negative net income.
Each year in the past 5 years GFL had a positive operating cash flow.
1.2 Ratios
GFL's Return On Assets of 14.32% is amongst the best of the industry. GFL outperforms 91.67% of its industry peers.
GFL has a better Return On Equity (34.64%) than 95.83% of its industry peers.
GFL's Return On Invested Capital of 1.79% is in line compared to the rest of the industry. GFL outperforms 41.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GFL is significantly below the industry average of 7.99%.
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 | 14.32% | ||
| ROE | 34.64% | ||
| 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
Looking at the Profit Margin, with a value of 36.58%, GFL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
GFL has a better Operating Margin (5.72%) than 66.67% of its industry peers.
With a Gross Margin value of 19.37%, GFL perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
GFL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.72% | ||
| PM (TTM) | 36.58% | ||
| GM | 19.37% |
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
GFL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GFL has more shares outstanding than it did 1 year ago.
GFL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GFL has a worse debt to assets ratio.
2.2 Solvency
GFL has an Altman-Z score of 1.75. This is a bad value and indicates that GFL is not financially healthy and even has some risk of bankruptcy.
GFL has a Altman-Z score (1.75) which is in line with its industry peers.
The Debt to FCF ratio of GFL is 31.28, which is on the high side as it means it would take GFL, 31.28 years of fcf income to pay off all of its debts.
GFL's Debt to FCF ratio of 31.28 is in line compared to the rest of the industry. GFL outperforms 45.83% of its industry peers.
GFL has a Debt/Equity ratio of 0.91. This is a neutral value indicating GFL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, GFL is in line with its industry, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 31.28 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.26
WACC6.8%
2.3 Liquidity
A Current Ratio of 0.82 indicates that GFL may have some problems paying its short term obligations.
GFL has a Current ratio of 0.82. This is in the lower half of the industry: GFL underperforms 62.50% of its industry peers.
A Quick Ratio of 0.82 indicates that GFL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, GFL is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for GFL have decreased strongly by -11.87% in the last year.
Measured over the past years, GFL shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.56% on average per year.
Looking at the last year, GFL shows a small growth in Revenue. The Revenue has grown by 1.37% in the last year.
The Revenue has been growing by 18.63% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.87%
EPS 3Y24.56%
EPS 5YN/A
EPS Q2Q%-900%
Revenue 1Y (TTM)1.37%
Revenue growth 3Y12.47%
Revenue growth 5Y18.63%
Sales Q2Q%-13.4%
3.2 Future
Based on estimates for the next years, GFL will show a very strong growth in Earnings Per Share. The EPS will grow by 26.93% on average per year.
Based on estimates for the next years, GFL will show a small growth in Revenue. The Revenue will grow by 3.24% on average per year.
EPS Next Y24.24%
EPS Next 2Y28.04%
EPS Next 3Y28.19%
EPS Next 5Y26.93%
Revenue Next Year-14.38%
Revenue Next 2Y-4.48%
Revenue Next 3Y-1.47%
Revenue Next 5Y3.24%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 91.53, GFL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GFL is on the same level as its industry peers.
GFL is valuated expensively when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 50.39 indicates a quite expensive valuation of GFL.
GFL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GFL is more expensive than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.17. GFL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.53 | ||
| Fwd PE | 50.39 |
4.2 Price Multiples
GFL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, GFL is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 105.25 | ||
| EV/EBITDA | 16.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GFL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GFL may justify a higher PE ratio.
GFL's earnings are expected to grow with 28.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.78
PEG (5Y)N/A
EPS Next 2Y28.04%
EPS Next 3Y28.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.12%, GFL is not a good candidate for dividend investing.
GFL's Dividend Yield is comparable with the industry average which is at 2.37.
With a Dividend Yield of 0.12, GFL pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
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
1.07% of the earnings are spent on dividend by GFL. This is a low number and sustainable payout ratio.
DP1.07%
EPS Next 2Y28.04%
EPS Next 3Y28.19%
TSX:GFL (6/2/2025, 7:00:00 PM)
68.65
-0.71 (-1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.23%
Inst Owner ChangeN/A
Ins Owners2.71%
Ins Owner ChangeN/A
Market Cap25.17B
Analysts76.25
Price Target70.62 (2.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
Yearly Dividend0.07
Dividend Growth(5Y)N/A
DP1.07%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-342.25%
Min EPS beat(2)-694.06%
Max EPS beat(2)9.55%
EPS beat(4)1
Avg EPS beat(4)-172.08%
Min EPS beat(4)-694.06%
Max EPS beat(4)9.55%
EPS beat(8)3
Avg EPS beat(8)-85.33%
EPS beat(12)6
Avg EPS beat(12)-28.68%
EPS beat(16)9
Avg EPS beat(16)19.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.51%
Revenue beat(8)1
Avg Revenue beat(8)-0.98%
Revenue beat(12)5
Avg Revenue beat(12)1.37%
Revenue beat(16)7
Avg Revenue beat(16)0.79%
PT rev (1m)1.47%
PT rev (3m)3.35%
EPS NQ rev (1m)-16.08%
EPS NQ rev (3m)-32.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.77%
Revenue NQ rev (1m)-3.01%
Revenue NQ rev (3m)-20.7%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-19.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.53 | ||
| Fwd PE | 50.39 | ||
| P/S | 3.3 | ||
| P/FCF | 105.25 | ||
| P/OCF | 17.36 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.39 |
EPS(TTM)0.75
EY1.09%
EPS(NY)1.36
Fwd EY1.98%
FCF(TTM)0.65
FCFY0.95%
OCF(TTM)3.96
OCFY5.76%
SpS20.78
BVpS21.95
TBVpS-1.38
PEG (NY)3.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.32% | ||
| ROE | 34.64% | ||
| ROCE | 2.49% | ||
| ROIC | 1.79% | ||
| ROICexc | 1.85% | ||
| ROICexgc | 3.73% | ||
| OM | 5.72% | ||
| PM (TTM) | 36.58% | ||
| GM | 19.37% | ||
| FCFM | 3.14% |
ROA(3y)-1.87%
ROA(5y)-3.18%
ROE(3y)-5.77%
ROE(5y)-9.45%
ROIC(3y)1.09%
ROIC(5y)N/A
ROICexc(3y)1.1%
ROICexc(5y)N/A
ROICexgc(3y)2.86%
ROICexgc(5y)N/A
ROCE(3y)1.52%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y25.55%
GM growth 5Y15.32%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 31.28 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 79.51% | ||
| Cap/Sales | 15.89% | ||
| Interest Coverage | 0.75 | ||
| Cash Conversion | 74.03% | ||
| Profit Quality | 8.58% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.75 |
F-Score6
WACC6.8%
ROIC/WACC0.26
Cap/Depr(3y)66.3%
Cap/Depr(5y)56.37%
Cap/Sales(3y)13.58%
Cap/Sales(5y)12.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.87%
EPS 3Y24.56%
EPS 5YN/A
EPS Q2Q%-900%
EPS Next Y24.24%
EPS Next 2Y28.04%
EPS Next 3Y28.19%
EPS Next 5Y26.93%
Revenue 1Y (TTM)1.37%
Revenue growth 3Y12.47%
Revenue growth 5Y18.63%
Sales Q2Q%-13.4%
Revenue Next Year-14.38%
Revenue Next 2Y-4.48%
Revenue Next 3Y-1.47%
Revenue Next 5Y3.24%
EBIT growth 1Y51.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year264.02%
EBIT Next 3Y61.98%
EBIT Next 5Y39.73%
FCF growth 1Y-9.05%
FCF growth 3Y11.47%
FCF growth 5YN/A
OCF growth 1Y30.35%
OCF growth 3Y19.71%
OCF growth 5Y43.74%