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. GFL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, GFL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year GFL was profitable.
- GFL had a positive operating cash flow in the past year.
- 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
- GFL has a Return On Assets of 18.38%. This is amongst the best in the industry. GFL outperforms 95.83% of its industry peers.
- GFL has a better Return On Equity (46.75%) than 100.00% of its industry peers.
- GFL has a Return On Invested Capital (1.79%) which is comparable to the rest of the industry.
- GFL had an Average Return On Invested Capital over the past 3 years of 1.09%. This 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
- The Profit Margin of GFL (51.46%) is better than 100.00% of its industry peers.
- Looking at the Operating Margin, with a value of 6.26%, GFL is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- GFL has a worse Gross Margin (20.38%) than 62.50% of its industry peers.
- In the last couple of years the Gross Margin of GFL has grown nicely.
| 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.
- Compared to 1 year ago, GFL has more shares outstanding
- The number of shares outstanding for GFL has been increased compared to 5 years ago.
- GFL has a worse debt/assets ratio than last year.
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 has a Altman-Z score (1.53) which is comparable to the rest of the industry.
- 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.
- Looking at the Debt to Equity ratio, with a value of 1.00, GFL is in line with its industry, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 34.89 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.25
WACC7.15%
2.3 Liquidity
- A Current Ratio of 0.69 indicates that GFL may have some problems paying 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
- GFL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.20%.
- The Earnings Per Share has been growing by 24.56% on average over the past years. This is a very strong growth
- Looking at the last year, GFL shows a very negative growth in Revenue. The Revenue has decreased by -10.87% in the last year.
- 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)-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
- Based on estimates for the next years, GFL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.32% on average per year.
- Based on estimates for the next years, GFL will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
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.
- 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
- 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 28.87.
- A Price/Forward Earnings ratio of 58.15 indicates a quite expensive valuation of GFL.
- The rest of the industry has a similar Price/Forward Earnings ratio as GFL.
- When comparing the Price/Forward Earnings ratio of GFL to the average of the S&P500 Index (25.96), 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 is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as GFL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.03 | ||
| EV/EBITDA | 16.3 |
4.3 Compensation for Growth
- GFL has a very decent profitability rating, which 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.
- Compared to an average industry Dividend Yield of 1.00, GFL has a dividend in line with its industry peers.
- 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
- 0.87% of the earnings are spent on dividend by GFL. This is a low number and 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.