GFL ENVIRONMENTAL INC-SUB VT (GFL)
CA36168Q1046 - Common Stock
We assign a fundamental rating of 2 out of 10 to GFL. GFL was compared to 83 industry peers in the Commercial Services & Supplies industry. GFL may be in some trouble as it scores bad on both profitability and health. GFL is quite expensive at the moment. It does show a decent growth rate.
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.
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
The Return On Assets of GFL (-3.36%) is worse than 68.67% of its industry peers.
The Return On Equity of GFL (-9.98%) is worse than 65.06% of its industry peers.
GFL has a Return On Invested Capital of 1.63%. This is in the lower half of the industry: GFL underperforms 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.36% | ||
| ROE | -9.98% | ||
| ROIC | 1.63% |
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 has a Operating Margin (4.63%) which is in line with its industry peers.
With a Gross Margin value of 18.24%, GFL is not doing good in the industry: 73.49% 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 | 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
The number of shares outstanding for GFL has been increased compared to 5 years ago.
GFL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that GFL is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.28, GFL is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
The Debt to FCF ratio of GFL is 37.23, which is on the high side as it means it would take GFL, 37.23 years of fcf income to pay off all of its debts.
GFL has a Debt to FCF ratio (37.23) which is in line with its industry peers.
GFL has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.32, GFL is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 37.23 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.23
WACC7.08%
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.
Looking at the Current ratio, with a value of 0.58, GFL is doing worse than 93.98% of the companies in the same industry.
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.
The Quick ratio of GFL (0.58) is worse than 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
GFL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.02%.
GFL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 76.83% yearly.
GFL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.09%.
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
The Earnings Per Share is expected to grow by 21.67% on average over the next years. This is a very strong growth
Based on estimates for the next years, GFL will show a small growth in Revenue. The Revenue will grow by 7.09% on average per year.
EPS Next Y-8.82%
EPS Next 2Y19.59%
EPS Next 3Y19.49%
EPS Next 5Y21.67%
Revenue Next Year4.91%
Revenue Next 2Y5.71%
Revenue Next 3Y5.69%
Revenue Next 5Y7.09%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
GFL is valuated quite expensively with a Price/Earnings ratio of 97.57.
Compared to the rest of the industry, the Price/Earnings ratio of GFL indicates a slightly more expensive valuation: GFL is more expensive than 61.45% of the companies listed in the same industry.
GFL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 47.95, GFL can be considered very expensive at the moment.
GFL's Price/Forward Earnings ratio is in line with the industry average.
GFL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.57 | ||
| Fwd PE | 47.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GFL.
GFL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 94.26 | ||
| EV/EBITDA | 18.52 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GFL's earnings are expected to grow with 19.49% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.59%
EPS Next 3Y19.49%
5. Dividend
5.1 Amount
GFL has a yearly dividend return of 0.12%, which is pretty low.
GFL's Dividend Yield is a higher than the industry average which is at 2.08.
With a Dividend Yield of 0.12, GFL pays less dividend than the S&P500 average, which is at 2.34.
| 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 decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of GFL are negative and hence is the payout ratio. GFL will probably not be able to sustain this dividend level.
DP-4.02%
EPS Next 2Y19.59%
EPS Next 3Y19.49%
GFL ENVIRONMENTAL INC-SUB VT
NYSE:GFL (12/20/2024, 8:14:31 PM)
After market: 44.88 0 (0%)44.88
-0.2 (-0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners78.12%
Inst Owner Change4.47%
Ins Owners2.71%
Ins Owner ChangeN/A
Market Cap17.65B
Analysts78.95
Price Target45.74 (1.92%)
Short Float %2.01%
Short Ratio7.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
Dividend Growth(5Y)N/A
DP-4.02%
Div Incr Years1
Div Non Decr Years1
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)8.21%
PT rev (3m)8.46%
EPS NQ rev (1m)-25.24%
EPS NQ rev (3m)-25.24%
EPS NY rev (1m)-5.92%
EPS NY rev (3m)-6.85%
Revenue NQ rev (1m)-4.87%
Revenue NQ rev (3m)-4.87%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.57 | ||
| Fwd PE | 47.95 | ||
| P/S | 3.27 | ||
| P/FCF | 94.26 | ||
| P/OCF | 18.42 | ||
| P/B | 3.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.52 |
EPS(TTM)0.46
EY1.02%
EPS(NY)0.94
Fwd EY2.09%
FCF(TTM)0.48
FCFY1.06%
OCF(TTM)2.44
OCFY5.43%
SpS13.73
BVpS12
TBVpS-6.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.36% | ||
| ROE | -9.98% | ||
| ROCE | 2.07% | ||
| ROIC | 1.63% | ||
| ROICexc | 1.64% | ||
| ROICexgc | 4.23% | ||
| 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 | 1.28 |
F-Score5
WACC7.08%
ROIC/WACC0.23
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-8.82%
EPS Next 2Y19.59%
EPS Next 3Y19.49%
EPS Next 5Y21.67%
Revenue 1Y (TTM)4.09%
Revenue growth 3Y21.44%
Revenue growth 5Y32.32%
Sales Q2Q%6.6%
Revenue Next Year4.91%
Revenue Next 2Y5.71%
Revenue Next 3Y5.69%
Revenue Next 5Y7.09%
EBIT growth 1Y31.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year263.89%
EBIT Next 3Y63.57%
EBIT Next 5Y40.54%
FCF growth 1Y31.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.86%
OCF growth 3Y24.98%
OCF growth 5Y119.18%