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 48 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making GIC a very profitable company, without any liquidiy or solvency issues. GIC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GIC had positive earnings in the past year.
In the past year GIC had a positive cash flow from operations.
GIC had positive earnings in each of the past 5 years.
GIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.71%, GIC belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
GIC has a Return On Equity of 21.70%. This is amongst the best in the industry. GIC outperforms 85.42% of its industry peers.
GIC has a Return On Invested Capital of 17.18%. This is amongst the best in the industry. GIC outperforms 95.83% 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 9.25%.
The last Return On Invested Capital (17.18%) 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 | 11.71% | ||
| ROE | 21.7% | ||
| ROIC | 17.18% |
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
With a Profit Margin value of 4.64%, GIC perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
GIC's Profit Margin has declined in the last couple of years.
GIC has a Operating Margin (6.12%) which is in line with its industry peers.
GIC's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 34.35%, GIC is doing good in the industry, outperforming 60.42% of the companies in the same industry.
GIC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.12% | ||
| PM (TTM) | 4.64% | ||
| GM | 34.35% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIC is creating value.
The number of shares outstanding for GIC has been increased compared to 1 year ago.
Compared to 5 years ago, GIC has more shares outstanding
GIC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.77 indicates that GIC is not in any danger for bankruptcy at the moment.
GIC's Altman-Z score of 5.77 is amongst the best of the industry. GIC outperforms 87.50% of its industry peers.
GIC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.77 |
ROIC/WACC1.74
WACC9.89%
2.3 Liquidity
GIC has a Current Ratio of 2.09. This indicates that GIC is financially healthy and has no problem in meeting its short term obligations.
GIC has a Current ratio (2.09) which is in line with its industry peers.
GIC has a Quick Ratio of 1.10. This is a normal value and indicates that GIC is financially healthy and should not expect problems in meeting its short term obligations.
GIC has a Quick ratio (1.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for GIC have decreased strongly by -15.14% in the last year.
Measured over the past 5 years, GIC shows a small growth in Earnings Per Share. The EPS has been growing by 3.07% on average per year.
The Revenue has been growing slightly by 3.26% in the past year.
The Revenue has been growing slightly by 6.80% on average over the past years.
EPS 1Y (TTM)-15.14%
EPS 3Y-4.98%
EPS 5Y3.07%
EPS Q2Q%-32.5%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.37%
Revenue growth 5Y6.8%
Sales Q2Q%-5.56%
3.2 Future
Based on estimates for the next years, GIC will show a small growth in Earnings Per Share. The EPS will grow by 6.35% on average per year.
The Revenue is expected to grow by 2.74% on average over the next years.
EPS Next Y-1.89%
EPS Next 2Y10.41%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y2.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 14.07 indicates a correct valuation of GIC.
Compared to the rest of the industry, the Price/Earnings ratio of GIC indicates a somewhat cheap valuation: GIC is cheaper than 72.92% of the companies listed in the same industry.
GIC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.
GIC is valuated correctly with a Price/Forward Earnings ratio of 14.34.
GIC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIC is cheaper than 70.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, GIC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIC indicates a somewhat cheap valuation: GIC is cheaper than 64.58% of the companies listed in the same industry.
72.92% of the companies in the same industry are more expensive than GIC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.04 | ||
| EV/EBITDA | 8.88 |
4.3 Compensation for Growth
The decent profitability rating of GIC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.59
EPS Next 2Y10.41%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.85%, GIC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.27, GIC pays a better dividend. On top of this GIC pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, GIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
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
62.95% of the earnings are spent on dividend by GIC. This is not a sustainable payout ratio.
DP62.95%
EPS Next 2Y10.41%
EPS Next 3Y6.35%
22.09
+0.51 (+2.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners34.87%
Inst Owner Change-0.45%
Ins Owners53.18%
Ins Owner Change2.15%
Market Cap846.27M
Analysts45
Price Target38.76 (75.46%)
Short Float %1.38%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Yearly Dividend1.01
Dividend Growth(5Y)-32.1%
DP62.95%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.71%
Min EPS beat(2)-24.89%
Max EPS beat(2)-4.53%
EPS beat(4)0
Avg EPS beat(4)-10.21%
Min EPS beat(4)-24.89%
Max EPS beat(4)-0.03%
EPS beat(8)3
Avg EPS beat(8)-1.73%
EPS beat(12)4
Avg EPS beat(12)2.11%
EPS beat(16)7
Avg EPS beat(16)2.92%
Revenue beat(2)0
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)-2.21%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)-0.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.11%
Revenue beat(12)6
Avg Revenue beat(12)0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.35%
PT rev (1m)0%
PT rev (3m)-5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.39%
EPS NY rev (1m)-10.56%
EPS NY rev (3m)-18.45%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 14.34 | ||
| P/S | 0.64 | ||
| P/FCF | 18.04 | ||
| P/OCF | 16.69 | ||
| P/B | 3.01 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)1.57
EY7.11%
EPS(NY)1.54
Fwd EY6.97%
FCF(TTM)1.22
FCFY5.54%
OCF(TTM)1.32
OCFY5.99%
SpS34.35
BVpS7.34
TBVpS5.62
PEG (NY)N/A
PEG (5Y)4.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.71% | ||
| ROE | 21.7% | ||
| ROCE | 22.85% | ||
| ROIC | 17.18% | ||
| ROICexc | 19.66% | ||
| ROICexgc | 25% | ||
| OM | 6.12% | ||
| PM (TTM) | 4.64% | ||
| GM | 34.35% | ||
| FCFM | 3.56% |
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-Score6
Asset Turnover2.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 50% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 268.33 | ||
| Cash Conversion | 57.55% | ||
| Profit Quality | 76.89% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 5.77 |
F-Score6
WACC9.89%
ROIC/WACC1.74
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)-15.14%
EPS 3Y-4.98%
EPS 5Y3.07%
EPS Q2Q%-32.5%
EPS Next Y-1.89%
EPS Next 2Y10.41%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.37%
Revenue growth 5Y6.8%
Sales Q2Q%-5.56%
Revenue Next Year1.2%
Revenue Next 2Y2.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-16.58%
EBIT growth 3Y-2.93%
EBIT growth 5Y4.27%
EBIT Next Year2.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-56.61%
FCF growth 3Y0.36%
FCF growth 5Y-5.28%
OCF growth 1Y-54.73%
OCF growth 3Y0.6%
OCF growth 5Y-5.81%