GLOBAL INDUSTRIAL CO (GIC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIC - US37892E1029 - Common Stock
30.92 USD
-0.47 (-1.5%)
GIC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 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 not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years GIC has always been profitable.
- Each year in the past 5 years GIC had a positive operating cash flow.
1.2 Ratios
- GIC has a better Return On Assets (11.32%) than 94.00% of its industry peers.
- The Return On Equity of GIC (21.58%) is better than 82.00% of its industry peers.
- GIC has a better Return On Invested Capital (16.64%) than 96.00% 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 9.64%.
- The 3 year average ROIC (21.56%) for GIC is well above the current ROIC(16.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.32% | ||
| ROE | 21.58% | ||
| ROIC | 16.64% |
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 has a Profit Margin (5.11%) which is in line with its industry peers.
- GIC's Profit Margin has declined in the last couple of years.
- GIC has a Operating Margin of 6.92%. This is comparable to the rest of the industry: GIC outperforms 56.00% of its industry peers.
- In the last couple of years the Operating Margin of GIC has declined.
- With a decent Gross Margin value of 35.44%, GIC is doing good in the industry, outperforming 66.00% 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 | 6.92% | ||
| PM (TTM) | 5.11% | ||
| GM | 35.44% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GIC is creating value.
- Compared to 1 year ago, GIC has more shares outstanding
- Compared to 5 years ago, GIC has more shares outstanding
- 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
- An Altman-Z score of 5.96 indicates that GIC is not in any danger for bankruptcy at the moment.
- GIC has a Altman-Z score of 5.96. This is amongst the best in the industry. GIC outperforms 84.00% 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 | 5.96 |
ROIC/WACC1.69
WACC9.82%
2.3 Liquidity
- A Current Ratio of 2.19 indicates that GIC has no problem at all paying its short term obligations.
- GIC has a Current ratio (2.19) which is in line with its industry peers.
- GIC has a Quick Ratio of 1.24. 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 (1.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.94% over the past year.
- The Earnings Per Share has been growing slightly by 3.07% on average over the past years.
- The Revenue has been growing slightly by 0.16% in the past year.
- GIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.80% yearly.
EPS 1Y (TTM)2.94%
EPS 3Y-4.98%
EPS 5Y3.07%
EPS Q2Q%9.09%
Revenue 1Y (TTM)0.16%
Revenue growth 3Y7.37%
Revenue growth 5Y6.8%
Sales Q2Q%3.27%
3.2 Future
- Based on estimates for the next years, GIC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.76% on average per year.
- GIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.60% yearly.
EPS Next Y18.37%
EPS Next 2Y12.86%
EPS Next 3Y11.76%
EPS Next 5YN/A
Revenue Next Year2.93%
Revenue Next 2Y3.28%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- A Price/Earnings ratio of 17.67 indicates a rather expensive valuation of GIC.
- 78.00% of the companies in the same industry are more expensive than GIC, based on the Price/Earnings ratio.
- GIC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 15.46, which indicates a correct valuation of GIC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GIC indicates a rather cheap valuation: GIC is cheaper than 84.00% of the companies listed in the same industry.
- GIC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GIC is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GIC is valued cheaper than 86.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 11.4 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- GIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)5.76
EPS Next 2Y12.86%
EPS Next 3Y11.76%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.29%, GIC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.48, GIC pays a better dividend. On top of this GIC pays more dividend than 88.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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.
- GIC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-32.1%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 58.06% of the earnings are spent on dividend by GIC. This is a bit on the high side, but may be sustainable.
DP58.06%
EPS Next 2Y12.86%
EPS Next 3Y11.76%
GLOBAL INDUSTRIAL CO / GIC FAQ
What is the ChartMill fundamental rating of GLOBAL INDUSTRIAL CO (GIC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIC.
What is the valuation status for GIC stock?
ChartMill assigns a valuation rating of 6 / 10 to GLOBAL INDUSTRIAL CO (GIC). This can be considered as Fairly Valued.
How profitable is GLOBAL INDUSTRIAL CO (GIC) stock?
GLOBAL INDUSTRIAL CO (GIC) has a profitability rating of 7 / 10.
What is the expected EPS growth for GLOBAL INDUSTRIAL CO (GIC) stock?
The Earnings per Share (EPS) of GLOBAL INDUSTRIAL CO (GIC) is expected to grow by 18.37% in the next year.
Can you provide the dividend sustainability for GIC stock?
The dividend rating of GLOBAL INDUSTRIAL CO (GIC) is 5 / 10 and the dividend payout ratio is 58.06%.