GFL ENVIRONMENTAL INC-SUB VT (GFL.CA) Stock Fundamental Analysis
TSX:GFL - Toronto Stock Exchange - CA36168Q1046 - Common Stock - Currency: CAD
Overall GFL gets a fundamental rating of 3 out of 10. We evaluated GFL against 24 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of GFL have multiple concerns. 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.
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
GFL's Return On Assets of -3.36% is on the low side compared to the rest of the industry. GFL is outperformed by 66.67% of its industry peers.
With a Return On Equity value of -9.98%, GFL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
GFL's Return On Invested Capital of 1.49% is in line compared to the rest of the industry. GFL outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.36% | ||
| ROE | -9.98% | ||
| ROIC | 1.49% |
ROA(3y)-1.71%
ROA(5y)-3.16%
ROE(3y)-5.44%
ROE(5y)-10.41%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GFL's Operating Margin of 4.63% is in line compared to the rest of the industry. GFL outperforms 54.17% of its industry peers.
GFL's Gross Margin of 18.24% is on the low side compared to the rest of the industry. GFL is outperformed by 66.67% of its industry peers.
GFL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.63% | ||
| PM (TTM) | N/A | ||
| GM | 18.24% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y55.06%
GM growth 5Y12.87%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GFL is destroying value.
Compared to 1 year ago, GFL has more shares outstanding
Compared to 5 years ago, GFL has more shares outstanding
GFL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that GFL is in the distress zone and has some risk of bankruptcy.
GFL has a Altman-Z score (1.31) which is comparable to the rest of the industry.
GFL has a debt to FCF ratio of 37.23. This is a negative value and a sign of low solvency as GFL would need 37.23 years to pay back of all of its debts.
GFL has a Debt to FCF ratio (37.23) which is in line with its industry peers.
A Debt/Equity ratio of 1.32 is on the high side and indicates that GFL has dependencies on debt financing.
GFL has a Debt to Equity ratio (1.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 37.23 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.22
WACC6.85%
2.3 Liquidity
GFL has a Current Ratio of 0.58. 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 Current ratio value of 0.58, GFL is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
GFL has a Quick Ratio of 0.58. 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 (0.58) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for GFL have decreased strongly by -24.02% in the last year.
Measured over the past years, GFL shows a very strong growth in Earnings Per Share. The EPS has been growing by 76.83% on average per year.
The Revenue has been growing slightly by 4.09% in the past year.
GFL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.32% yearly.
EPS 1Y (TTM)-24.02%
EPS 3Y76.83%
EPS 5YN/A
EPS Q2Q%3.13%
Revenue 1Y (TTM)4.09%
Revenue growth 3Y21.44%
Revenue growth 5Y32.32%
Sales Q2Q%6.6%
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 22.08% on average per year.
Based on estimates for the next years, GFL will show a small growth in Revenue. The Revenue will grow by 6.84% on average per year.
EPS Next Y-9.49%
EPS Next 2Y24.17%
EPS Next 3Y22.72%
EPS Next 5Y22.08%
Revenue Next Year4.92%
Revenue Next 2Y5.76%
Revenue Next 3Y5.07%
Revenue Next 5Y6.84%
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 99.97, GFL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as GFL.
Compared to an average S&P500 Price/Earnings ratio of 29.63, GFL is valued quite expensively.
With a Price/Forward Earnings ratio of 45.52, GFL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GFL is on the same level as its industry peers.
GFL is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 99.97 | ||
| Fwd PE | 45.52 |
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 | 96.49 | ||
| EV/EBITDA | 18.78 |
4.3 Compensation for Growth
GFL's earnings are expected to grow with 22.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.17%
EPS Next 3Y22.72%
5. Dividend
5.1 Amount
GFL has a yearly dividend return of 0.12%, which is pretty low.
Compared to an average industry Dividend Yield of 2.05, GFL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.12, GFL pays less dividend than the S&P500 average, which is at 2.27.
| 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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-4.02%
EPS Next 2Y24.17%
EPS Next 3Y22.72%
TSX:GFL (2/21/2025, 7:00:00 PM)
65.98
+0.49 (+0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.23%
Inst Owner ChangeN/A
Ins Owners2.71%
Ins Owner ChangeN/A
Market Cap25.96B
Analysts78.89
Price Target68.34 (3.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
Yearly Dividend0.07
Dividend Growth(5Y)N/A
DP-4.02%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.9%
Min EPS beat(2)-3.09%
Max EPS beat(2)-0.72%
EPS beat(4)0
Avg EPS beat(4)-25.73%
Min EPS beat(4)-78.04%
Max EPS beat(4)-0.72%
EPS beat(8)3
Avg EPS beat(8)21.22%
EPS beat(12)7
Avg EPS beat(12)72.47%
EPS beat(16)9
Avg EPS beat(16)67.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)-1.01%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)0.68%
Revenue beat(8)3
Avg Revenue beat(8)0.43%
Revenue beat(12)7
Avg Revenue beat(12)1.96%
Revenue beat(16)7
Avg Revenue beat(16)0.37%
PT rev (1m)0.81%
PT rev (3m)5.96%
EPS NQ rev (1m)-3.48%
EPS NQ rev (3m)-3.48%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-6.61%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 99.97 | ||
| Fwd PE | 45.52 | ||
| P/S | 3.35 | ||
| P/FCF | 96.49 | ||
| P/OCF | 18.86 | ||
| P/B | 3.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.78 |
EPS(TTM)0.66
EY1%
EPS(NY)1.45
Fwd EY2.2%
FCF(TTM)0.68
FCFY1.04%
OCF(TTM)3.5
OCFY5.3%
SpS19.72
BVpS17.23
TBVpS-9.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.36% | ||
| ROE | -9.98% | ||
| ROCE | 2.07% | ||
| ROIC | 1.49% | ||
| ROICexc | 1.5% | ||
| ROICexgc | 3.85% | ||
| OM | 4.63% | ||
| PM (TTM) | N/A | ||
| GM | 18.24% | ||
| FCFM | 3.47% |
ROA(3y)-1.71%
ROA(5y)-3.16%
ROE(3y)-5.44%
ROE(5y)-10.41%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3Y55.06%
GM growth 5Y12.87%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 37.23 | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 71.36% | ||
| Cap/Sales | 14.27% | ||
| Interest Coverage | 0.68 | ||
| Cash Conversion | 72.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.31 |
F-Score5
WACC6.85%
ROIC/WACC0.22
Cap/Depr(3y)56.93%
Cap/Depr(5y)52.53%
Cap/Sales(3y)12.43%
Cap/Sales(5y)12.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.02%
EPS 3Y76.83%
EPS 5YN/A
EPS Q2Q%3.13%
EPS Next Y-9.49%
EPS Next 2Y24.17%
EPS Next 3Y22.72%
EPS Next 5Y22.08%
Revenue 1Y (TTM)4.09%
Revenue growth 3Y21.44%
Revenue growth 5Y32.32%
Sales Q2Q%6.6%
Revenue Next Year4.92%
Revenue Next 2Y5.76%
Revenue Next 3Y5.07%
Revenue Next 5Y6.84%
EBIT growth 1Y31.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year263.89%
EBIT Next 3Y63.57%
EBIT Next 5Y40.21%
FCF growth 1Y31.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.86%
OCF growth 3Y24.98%
OCF growth 5Y119.18%