GLOBAL INDUSTRIAL CO (GIC) Stock Fundamental Analysis
NYSE:GIC - New York Stock Exchange, Inc. - US37892E1029 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to GIC. GIC was compared to 49 industry peers in the Trading Companies & Distributors industry. GIC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GIC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GIC was profitable.
In the past year GIC had a positive cash flow from operations.
In the past 5 years GIC has always been profitable.
GIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GIC (11.44%) is better than 93.88% of its industry peers.
Looking at the Return On Equity, with a value of 21.33%, GIC belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
GIC has a Return On Invested Capital of 17.15%. This is amongst the best in the industry. GIC outperforms 93.88% of its industry peers.
GIC had an Average Return On Invested Capital over the past 3 years of 21.56%. This is significantly above the industry average of 9.84%.
The last Return On Invested Capital (17.15%) for GIC is well below the 3 year average (21.56%), which needs to be investigated, but indicates that GIC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.44% | ||
| ROE | 21.33% | ||
| ROIC | 17.15% |
ROA(3y)14.27%
ROA(5y)17.15%
ROE(3y)28.95%
ROE(5y)43.07%
ROIC(3y)21.56%
ROIC(5y)25.41%
1.3 Margins
GIC's Profit Margin of 4.67% is fine compared to the rest of the industry. GIC outperforms 61.22% of its industry peers.
GIC's Profit Margin has declined in the last couple of years.
The Operating Margin of GIC (6.19%) is comparable to the rest of the industry.
GIC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.50%, GIC is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
In the last couple of years the Gross Margin of GIC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.19% | ||
| PM (TTM) | 4.67% | ||
| GM | 34.5% |
OM growth 3Y-9.59%
OM growth 5Y-2.37%
PM growth 3Y-21.86%
PM growth 5Y-1.98%
GM growth 3Y-0.82%
GM growth 5Y-0.03%
2. Health
2.1 Basic Checks
GIC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GIC has been increased compared to 1 year ago.
GIC has more shares outstanding than it did 5 years ago.
There is no outstanding debt for GIC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
GIC has an Altman-Z score of 6.12. This indicates that GIC is financially healthy and has little risk of bankruptcy at the moment.
GIC's Altman-Z score of 6.12 is amongst the best of the industry. GIC outperforms 85.71% of its industry peers.
There is no outstanding debt for GIC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.12 |
ROIC/WACC1.7
WACC10.11%
2.3 Liquidity
A Current Ratio of 2.07 indicates that GIC has no problem at all paying its short term obligations.
GIC has a Current ratio (2.07) which is in line with its industry peers.
A Quick Ratio of 1.08 indicates that GIC should not have too much problems paying its short term obligations.
GIC has a Quick ratio of 1.08. This is comparable to the rest of the industry: GIC outperforms 40.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
GIC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.13%.
The Earnings Per Share has been growing slightly by 3.07% on average over the past years.
The Revenue has decreased by -0.79% in the past year.
The Revenue has been growing slightly by 6.80% on average over the past years.
EPS 1Y (TTM)-14.13%
EPS 3Y-4.98%
EPS 5Y3.07%
EPS Q2Q%2.94%
Revenue 1Y (TTM)-0.79%
Revenue growth 3Y7.37%
Revenue growth 5Y6.8%
Sales Q2Q%-0.74%
3.2 Future
The Earnings Per Share is expected to grow by 3.43% on average over the next years.
The Revenue is expected to grow by 4.04% on average over the next years.
EPS Next Y8.4%
EPS Next 2Y8.8%
EPS Next 3Y3.43%
EPS Next 5YN/A
Revenue Next Year2.85%
Revenue Next 2Y3.47%
Revenue Next 3Y4.04%
Revenue Next 5YN/A
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.
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 17.76, GIC is valued on the expensive side.
Based on the Price/Earnings ratio, GIC is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
GIC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.10, which indicates a correct valuation of GIC.
GIC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIC is cheaper than 69.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, GIC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
GIC's Enterprise Value to EBITDA is on the same level as the industry average.
GIC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GIC is cheaper than 69.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.92 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GIC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GIC may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)5.79
EPS Next 2Y8.8%
EPS Next 3Y3.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.77%, GIC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.00, GIC pays a better dividend. On top of this GIC pays more dividend than 87.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, GIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
The dividend of GIC decreases each year by -32.10%.
GIC has been paying a dividend for over 5 years, so it has already some track record.
The dividend of GIC decreased in the last 3 years.
Dividend Growth(5Y)-32.1%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
63.36% of the earnings are spent on dividend by GIC. This is not a sustainable payout ratio.
DP63.36%
EPS Next 2Y8.8%
EPS Next 3Y3.43%
28.06
+1.05 (+3.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners34.87%
Inst Owner Change9.66%
Ins Owners53.05%
Ins Owner Change2.31%
Market Cap1.08B
Analysts45
Price Target38.76 (38.13%)
Short Float %1.54%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend1.01
Dividend Growth(5Y)-32.1%
DP63.36%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)34.37%
Min EPS beat(2)-4.53%
Max EPS beat(2)73.27%
EPS beat(4)1
Avg EPS beat(4)10.96%
Min EPS beat(4)-24.89%
Max EPS beat(4)73.27%
EPS beat(8)4
Avg EPS beat(8)8.82%
EPS beat(12)4
Avg EPS beat(12)3.66%
EPS beat(16)8
Avg EPS beat(16)11.08%
Revenue beat(2)1
Avg Revenue beat(2)0.66%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)3.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)3.53%
Revenue beat(8)4
Avg Revenue beat(8)0.69%
Revenue beat(12)6
Avg Revenue beat(12)-0.07%
Revenue beat(16)7
Avg Revenue beat(16)-0.07%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.45%
EPS NY rev (1m)0%
EPS NY rev (3m)10.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 15.1 | ||
| P/S | 0.82 | ||
| P/FCF | 23.92 | ||
| P/OCF | 22.57 | ||
| P/B | 3.74 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | 11.22 |
EPS(TTM)1.58
EY5.63%
EPS(NY)1.86
Fwd EY6.62%
FCF(TTM)1.17
FCFY4.18%
OCF(TTM)1.24
OCFY4.43%
SpS34.24
BVpS7.51
TBVpS5.81
PEG (NY)2.11
PEG (5Y)5.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.44% | ||
| ROE | 21.33% | ||
| ROCE | 22.82% | ||
| ROIC | 17.15% | ||
| ROICexc | 19.26% | ||
| ROICexgc | 24.21% | ||
| OM | 6.19% | ||
| PM (TTM) | 4.67% | ||
| GM | 34.5% | ||
| FCFM | 3.43% |
ROA(3y)14.27%
ROA(5y)17.15%
ROE(3y)28.95%
ROE(5y)43.07%
ROIC(3y)21.56%
ROIC(5y)25.41%
ROICexc(3y)24.1%
ROICexc(5y)28.25%
ROICexgc(3y)28.51%
ROICexgc(5y)31.47%
ROCE(3y)28.71%
ROCE(5y)33.97%
ROICexcg growth 3Y-7.97%
ROICexcg growth 5Y-7.53%
ROICexc growth 3Y-13.97%
ROICexc growth 5Y-10.93%
OM growth 3Y-9.59%
OM growth 5Y-2.37%
PM growth 3Y-21.86%
PM growth 5Y-1.98%
GM growth 3Y-0.82%
GM growth 5Y-0.03%
F-Score5
Asset Turnover2.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 35.53% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.66% | ||
| Profit Quality | 73.29% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 6.12 |
F-Score5
WACC10.11%
ROIC/WACC1.7
Cap/Depr(3y)100.23%
Cap/Depr(5y)91.69%
Cap/Sales(3y)0.41%
Cap/Sales(5y)0.36%
Profit Quality(3y)94.7%
Profit Quality(5y)85.83%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.13%
EPS 3Y-4.98%
EPS 5Y3.07%
EPS Q2Q%2.94%
EPS Next Y8.4%
EPS Next 2Y8.8%
EPS Next 3Y3.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.79%
Revenue growth 3Y7.37%
Revenue growth 5Y6.8%
Sales Q2Q%-0.74%
Revenue Next Year2.85%
Revenue Next 2Y3.47%
Revenue Next 3Y4.04%
Revenue Next 5YN/A
EBIT growth 1Y-15.4%
EBIT growth 3Y-2.93%
EBIT growth 5Y4.27%
EBIT Next Year19.15%
EBIT Next 3Y4.8%
EBIT Next 5YN/A
FCF growth 1Y-47.43%
FCF growth 3Y0.36%
FCF growth 5Y-5.28%
OCF growth 1Y-48.49%
OCF growth 3Y0.6%
OCF growth 5Y-5.81%