GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) Stock Fundamental Analysis
TSX:GFL - Toronto Stock Exchange - CA36168Q1046 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to GFL. GFL was compared to 24 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of GFL while its profitability can be described as average. While showing a medium growth rate, GFL is valued expensive at the moment.
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.
GFL had negative earnings in each of the past 5 years.
In the past 5 years GFL always reported a positive cash flow from operatings.
1.2 Ratios
GFL has a Return On Assets of 14.32%. This is amongst the best in the industry. GFL outperforms 95.83% of its industry peers.
Looking at the Return On Equity, with a value of 34.64%, GFL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of GFL (1.79%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GFL is significantly below the industry average of 7.19%.
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
With an excellent Profit Margin value of 36.58%, GFL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
GFL has a Operating Margin of 5.72%. This is in the better half of the industry: GFL outperforms 62.50% of its industry peers.
With a Gross Margin value of 19.37%, GFL is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
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
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
Compared to 1 year ago, GFL has a worse debt to assets ratio.
2.2 Solvency
GFL has an Altman-Z score of 1.69. 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 of 1.69. This is comparable 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.
GFL's Debt to FCF ratio of 31.28 is in line compared to the rest of the industry. GFL outperforms 50.00% 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 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 | 1.69 |
ROIC/WACC0.26
WACC6.92%
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 (0.82) which is in line with 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
GFL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.87%.
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%.
GFL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.63% yearly.
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
The Earnings Per Share is expected to grow by 20.01% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.88% on average over the next years.
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 86.81 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 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 47.79 indicates a quite expensive valuation of GFL.
Based on the Price/Forward Earnings ratio, GFL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
GFL is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.81 | ||
| Fwd PE | 47.79 |
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 | 99.82 | ||
| EV/EBITDA | 15.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 28.19% in the coming years.
PEG (NY)3.58
PEG (5Y)N/A
EPS Next 2Y28.04%
EPS Next 3Y28.19%
5. Dividend
5.1 Amount
GFL has a yearly dividend return of 0.12%, which is pretty low.
GFL's Dividend Yield is comparable with the industry average which is at 2.27.
Compared to an average S&P500 Dividend Yield of 2.37, 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.
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 1.07% of its income as dividend. This is a sustainable payout ratio.
DP1.07%
EPS Next 2Y28.04%
EPS Next 3Y28.19%
TSX:GFL (7/8/2025, 7:00:00 PM)
65.11
-0.46 (-0.7%)
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 Cap23.88B
Analysts75
Price Target72.82 (11.84%)
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)3.11%
PT rev (3m)6.13%
EPS NQ rev (1m)-10.69%
EPS NQ rev (3m)-28.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.81 | ||
| Fwd PE | 47.79 | ||
| P/S | 3.13 | ||
| P/FCF | 99.82 | ||
| P/OCF | 16.46 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)0.75
EY1.15%
EPS(NY)1.36
Fwd EY2.09%
FCF(TTM)0.65
FCFY1%
OCF(TTM)3.96
OCFY6.08%
SpS20.78
BVpS21.95
TBVpS-1.38
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 | 1.69 |
F-Score6
WACC6.92%
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%