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.
In the past year GFL had a positive cash flow from operations.
In the past 5 years GFL always reported negative net income.
In the past 5 years GFL always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 14.32%, GFL belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
The Return On Equity of GFL (34.64%) 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 significantly below the industry average of 7.19%.
The last Return On Invested Capital (1.79%) for GFL is above the 3 year average (1.09%), which is a sign of increasing profitability.
| 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
The Profit Margin of GFL (36.58%) is better than 100.00% of its industry peers.
GFL's Operating Margin of 5.72% is fine compared to the rest of the industry. GFL outperforms 62.50% of its industry peers.
GFL's Gross Margin of 19.37% 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 | 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.
The number of shares outstanding for GFL has been increased compared to 1 year ago.
Compared to 5 years ago, GFL has more shares outstanding
GFL has a worse debt/assets ratio than last year.
2.2 Solvency
GFL has an Altman-Z score of 1.68. 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 1.68 is in line compared to the rest of the industry. GFL outperforms 54.17% of its industry peers.
GFL has a debt to FCF ratio of 31.28. This is a negative value and a sign of low solvency as GFL would need 31.28 years to pay back of all of its debts.
The Debt to FCF ratio of GFL (31.28) is comparable to the rest of the industry.
GFL has a Debt/Equity ratio of 0.91. This is a neutral value indicating GFL is somewhat dependend on debt financing.
GFL has a Debt to Equity ratio (0.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 31.28 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.26
WACC6.91%
2.3 Liquidity
GFL has a Current Ratio of 0.82. This is a bad value and indicates that GFL is not financially healthy enough and could expect problems in meeting its short term obligations.
GFL's Current ratio of 0.82 is in line compared to the rest of the industry. GFL outperforms 41.67% of its industry peers.
A Quick Ratio of 0.82 indicates that GFL may have some problems paying its short term obligations.
GFL has a Quick ratio of 0.82. This is comparable to the rest of the industry: GFL outperforms 41.67% of its industry peers.
| 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.
GFL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.56% yearly.
GFL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.37%.
Measured over the past years, GFL shows a quite strong growth in Revenue. The Revenue has been growing by 18.63% on average per year.
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 20.01% on average per year.
Based on estimates for the next years, GFL will show a small growth in Revenue. The Revenue will grow by 3.88% on average per year.
EPS Next Y24.24%
EPS Next 2Y28.04%
EPS Next 3Y28.19%
EPS Next 5Y20.01%
Revenue Next Year-14.38%
Revenue Next 2Y-4.48%
Revenue Next 3Y-1.47%
Revenue Next 5Y3.88%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 86.89 indicates a quite expensive valuation of GFL.
The rest of the industry has a similar Price/Earnings ratio as GFL.
GFL is valuated expensively when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 47.84, the valuation of GFL can be described as expensive.
Based on the Price/Forward Earnings ratio, GFL is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. GFL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.89 | ||
| Fwd PE | 47.84 |
4.2 Price Multiples
GFL's Enterprise Value to EBITDA is on the same level as the industry average.
GFL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.33 | ||
| EV/EBITDA | 15.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GFL has a very decent profitability rating, which 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)3.58
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.
Compared to an average industry Dividend Yield of 2.24, GFL has a dividend in line with its industry peers.
With a Dividend Yield of 0.12, GFL pays less dividend than the S&P500 average, which is at 2.35.
| 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 (7/18/2025, 7:00:00 PM)
65.17
-0.13 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner ChangeN/A
Ins Owners2.88%
Ins Owner ChangeN/A
Market Cap23.76B
Analysts75
Price Target72.82 (11.74%)
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)0%
PT rev (3m)6.13%
EPS NQ rev (1m)-10.69%
EPS NQ rev (3m)-25.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.89 | ||
| Fwd PE | 47.84 | ||
| P/S | 3.12 | ||
| P/FCF | 99.33 | ||
| P/OCF | 16.38 | ||
| P/B | 2.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.69 |
EPS(TTM)0.75
EY1.15%
EPS(NY)1.36
Fwd EY2.09%
FCF(TTM)0.66
FCFY1.01%
OCF(TTM)3.98
OCFY6.1%
SpS20.9
BVpS22.07
TBVpS-1.39
PEG (NY)3.58
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 | 1.68 |
F-Score6
WACC6.91%
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 5Y20.01%
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 5Y3.88%
EBIT growth 1Y51.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year264.02%
EBIT Next 3Y61.98%
EBIT Next 5Y40.42%
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%