GFL ENVIRONMENTAL INC-SUB VT (GFL) Stock Fundamental Analysis
NYSE:GFL - New York Stock Exchange, Inc. - CA36168Q1046 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GFL. GFL was compared to 84 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. 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.
GFL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GFL's Return On Assets of 14.32% is amongst the best of the industry. GFL outperforms 92.86% of its industry peers.
GFL has a Return On Equity of 34.64%. This is amongst the best in the industry. GFL outperforms 95.24% of its industry peers.
With a Return On Invested Capital value of 1.97%, GFL is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for GFL is significantly below the industry average of 11.60%.
The 3 year average ROIC (1.20%) for GFL is below the current ROIC(1.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.32% | ||
| ROE | 34.64% | ||
| ROIC | 1.97% |
ROA(3y)-1.87%
ROA(5y)-3.18%
ROE(3y)-5.77%
ROE(5y)-9.45%
ROIC(3y)1.2%
ROIC(5y)N/A
1.3 Margins
GFL has a better Profit Margin (36.58%) than 97.62% of its industry peers.
The Operating Margin of GFL (5.72%) is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 19.37%, GFL is doing worse than 72.62% of the companies in the same industry.
In the last couple of years the Gross Margin of GFL has grown nicely.
| 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
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.
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.
Looking at the Altman-Z score, with a value of 1.75, GFL is in line with its industry, outperforming 42.86% of the companies in the same industry.
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.
GFL has a Debt to FCF ratio of 31.28. This is comparable to the rest of the industry: GFL outperforms 46.43% 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.
GFL's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. GFL is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 31.28 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.29
WACC6.7%
2.3 Liquidity
A Current Ratio of 0.82 indicates that GFL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, GFL is doing worse than 79.76% of the companies in the same industry.
GFL has a Quick 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 has a worse Quick ratio (0.82) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
GFL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.60%, which is quite good.
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 4.61% 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)10.6%
EPS 3Y24.56%
EPS 5YN/A
EPS Q2Q%-10.34%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y12.47%
Revenue growth 5Y18.63%
Sales Q2Q%-18.68%
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.
GFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.88% yearly.
EPS Next Y24.24%
EPS Next 2Y28.04%
EPS Next 3Y28.19%
EPS Next 5Y20.01%
Revenue Next Year-16.48%
Revenue Next 2Y-5.7%
Revenue Next 3Y-1.49%
Revenue Next 5Y3.88%
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.
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
The Price/Earnings ratio is 97.12, which means the current valuation is very expensive for GFL.
GFL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. GFL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 51.43, 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.
GFL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.12 | ||
| Fwd PE | 51.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GFL.
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 | 106.43 | ||
| EV/EBITDA | 16.35 |
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.
GFL's earnings are expected to grow with 28.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.01
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 a higher than the industry average which is at 2.50.
Compared to an average S&P500 Dividend Yield of 2.40, GFL's dividend is way lower than the S&P500 average.
| 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.
The dividend of GFL decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
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%
50.5
+0.72 (+1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner Change-0.23%
Ins Owners2.88%
Ins Owner ChangeN/A
Market Cap18.35B
Analysts76.92
Price Target54.29 (7.5%)
Short Float %2.8%
Short Ratio8.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
Yearly Dividend0.05
Dividend Growth(5Y)N/A
DP1.07%
Div Incr Years1
Div Non Decr Years1
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)2.21%
PT rev (3m)7.81%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-27.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.99%
Revenue NQ rev (3m)-5.8%
Revenue NY rev (1m)-2.46%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.12 | ||
| Fwd PE | 51.43 | ||
| P/S | 3.34 | ||
| P/FCF | 106.43 | ||
| P/OCF | 17.55 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.35 |
EPS(TTM)0.52
EY1.03%
EPS(NY)0.98
Fwd EY1.94%
FCF(TTM)0.47
FCFY0.94%
OCF(TTM)2.88
OCFY5.7%
SpS15.12
BVpS15.97
TBVpS-1
PEG (NY)4.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.32% | ||
| ROE | 34.64% | ||
| ROCE | 2.49% | ||
| ROIC | 1.97% | ||
| ROICexc | 2.03% | ||
| ROICexgc | 4.09% | ||
| 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)1.2%
ROIC(5y)N/A
ROICexc(3y)1.21%
ROICexc(5y)N/A
ROICexgc(3y)3.14%
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
WACC6.7%
ROIC/WACC0.29
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)10.6%
EPS 3Y24.56%
EPS 5YN/A
EPS Q2Q%-10.34%
EPS Next Y24.24%
EPS Next 2Y28.04%
EPS Next 3Y28.19%
EPS Next 5Y20.01%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y12.47%
Revenue growth 5Y18.63%
Sales Q2Q%-18.68%
Revenue Next Year-16.48%
Revenue Next 2Y-5.7%
Revenue Next 3Y-1.49%
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%