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. There are concerns on the financial health of GFL while its profitability can be described as average. GFL is quite expensive at the moment. 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 has a Return On Assets of 18.38%. This is amongst the best in the industry. GFL outperforms 95.83% of its industry peers.
- With an excellent Return On Equity value of 46.75%, GFL belongs to the best 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.
- Measured over the past 3 years, the Average Return On Invested Capital for GFL 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
- With an excellent Profit Margin value of 51.46%, GFL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- GFL has a Operating Margin of 6.26%. This is in the better half of the industry: GFL outperforms 62.50% of its industry peers.
- GFL's Gross Margin of 20.38% 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 | 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
- GFL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, GFL has more shares outstanding
- Compared to 5 years ago, GFL has more shares outstanding
- The debt/assets ratio for GFL is higher compared to a year ago.
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 in line with its industry peers.
- The Debt to FCF ratio of GFL is 34.89, which is on the high side as it means it would take GFL, 34.89 years of fcf income to pay off all of its debts.
- GFL's Debt to FCF ratio of 34.89 is on the low side compared to the rest of the industry. GFL is outperformed by 62.50% of its industry peers.
- GFL has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of GFL (1.00) is comparable to the rest of the 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.
- GFL's Current ratio of 0.69 is on the low side compared to the rest of the industry. GFL is outperformed by 66.67% of its industry peers.
- A Quick Ratio of 0.69 indicates that GFL may have some problems paying its short term obligations.
- GFL has a Quick ratio of 0.69. This is comparable to the rest of the industry: GFL outperforms 41.67% of its industry peers.
| 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%.
- 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -10.87%.
- 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)-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
- GFL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.32% yearly.
- The Revenue is expected to grow by 3.51% on average over the next years.
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.
- 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
- With a Price/Earnings ratio of 98.35, GFL can be considered very expensive at the moment.
- GFL's Price/Earnings is on the same level as the industry average.
- GFL is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 58.15, which means the current valuation is very expensive for GFL.
- GFL's Price/Forward Earnings ratio is in line with the industry average.
- GFL is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.35 | ||
| Fwd PE | 58.15 |
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 | 97.03 | ||
| EV/EBITDA | 16.28 |
4.3 Compensation for Growth
- The decent profitability rating of GFL may justify a higher PE ratio.
- GFL's earnings are expected to grow with 20.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.34%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
- GFL has a yearly dividend return of 0.13%, which is pretty low.
- GFL's Dividend Yield is comparable with the industry average which is at 1.00.
- 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.