TSX:GDL

Stock Analysis Report

Executive Summary

Goodfellow Inc. engages in the wholesale distribution of lumber products, building materials, and hardwood flooring products to the retail trade, industrial, and manufacturing sectors in Canada and the United States.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Goodfellow's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GDL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

GDL

2.1%

CA Trade Distributors

6.4%

CA Market


1 Year Return

-39.1%

GDL

-26.5%

CA Trade Distributors

-25.5%

CA Market

Return vs Industry: GDL underperformed the Canadian Trade Distributors industry which returned -24% over the past year.

Return vs Market: GDL underperformed the Canadian Market which returned -22% over the past year.


Shareholder returns

GDLIndustryMarket
7 Day-5.0%2.1%6.4%
30 Day-19.5%-21.4%-22.6%
90 Day-24.9%-29.1%-26.8%
1 Year-37.0%-39.1%-24.1%-26.5%-23.2%-25.5%
3 Year-52.3%-54.5%-14.1%-21.4%-15.7%-23.5%
5 Year-56.3%-61.0%6.3%-9.6%-3.1%-17.4%

Price Volatility Vs. Market

How volatile is Goodfellow's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Goodfellow undervalued compared to its fair value and its price relative to the market?

13.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GDL (CA$3.8) is trading below our estimate of fair value (CA$4.38)

Significantly Below Fair Value: GDL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GDL is poor value based on its PE Ratio (10.6x) compared to the Trade Distributors industry average (10.3x).

PE vs Market: GDL is good value based on its PE Ratio (10.6x) compared to the Canadian market (10.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GDL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GDL is good value based on its PB Ratio (0.3x) compared to the CA Trade Distributors industry average (0.7x).


Next Steps

Future Growth

How is Goodfellow forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.1%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Goodfellow has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Goodfellow performed over the past 5 years?

-13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDL has high quality earnings.

Growing Profit Margin: GDL's current net profit margins (0.7%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: GDL's earnings have declined by -13.4% per year over the past 5 years.

Accelerating Growth: GDL's earnings growth over the past year (18.8%) exceeds its 5-year average (-13.4% per year).

Earnings vs Industry: GDL earnings growth over the past year (18.8%) exceeded the Trade Distributors industry 4.3%.


Return on Equity

High ROE: GDL's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Goodfellow's financial position?


Financial Position Analysis

Short Term Liabilities: GDL's short term assets (CA$140.8M) exceed its short term liabilities (CA$63.3M).

Long Term Liabilities: GDL's short term assets (CA$140.8M) exceed its long term liabilities (CA$3.8M).


Debt to Equity History and Analysis

Debt Level: GDL's debt to equity ratio (27.5%) is considered satisfactory.

Reducing Debt: GDL's debt to equity ratio has reduced from 37.1% to 27.5% over the past 5 years.

Debt Coverage: GDL's debt is well covered by operating cash flow (43%).

Interest Coverage: GDL's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: GDL has a high level of physical assets or inventory.

Debt Coverage by Assets: GDL's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

What is Goodfellow's current dividend yield, its reliability and sustainability?

5.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GDL's dividend (5.26%) is higher than the bottom 25% of dividend payers in the Canadian market (2.7%).

High Dividend: GDL's dividend (5.26%) is low compared to the top 25% of dividend payers in the Canadian market (8.48%).


Stability and Growth of Payments

Stable Dividend: GDL's dividend payments have been volatile in the past 10 years.

Growing Dividend: GDL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.7%), GDL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Patrick Goodfellow

3.17s

Tenure

CA$374,702

Compensation

Mr. Patrick Goodfellow has been Chief Executive Officer and President at Goodfellow Inc. since January 18, 2017. Mr. Goodfellow served as Vice President of Hardwood at Goodfellow Inc. from 2006 to January  ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD266.24K) is above average for companies of similar size in the Canadian market ($USD156.92K).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Goodfellow
President & CEO3.17yrsCA$374.70k0.71% CA$231.8k
G. Goodfellow
Vice Chairman & Secretaryno datano data0.000010% CA$3.3
Charles Brisebois
Chief Financial Officer2.5yrsCA$165.96k0.012% CA$3.8k
Mary Lohmus
Executive Vice President of Ontario & Western Canadano dataCA$274.01k0.18% CA$58.9k
Luc Pothier
Vice President of Operationsno datano datano data

3.2yrs

Average Tenure

Experienced Management: GDL's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
G. Goodfellow
Vice Chairman & Secretaryno datano data0.000010% CA$3.3
Stephen Jarislowsky
Independent Director46.83yrsCA$37.95k12.46% CA$4.1m
Normand Morin
Independent Director8.25yrsCA$42.35k0.058% CA$19.0k
David Goodfellow
Non-Independent Director26.42yrsCA$26.40k0.047% CA$15.2k
Claude Garcia
Independent Chairman of the Board7.33yrsCA$64.35k0.75% CA$245.1k
Alain Côté
Independent Director1.92yrsCA$41.25k0.012% CA$3.8k

8.3yrs

Average Tenure

78yo

Average Age

Experienced Board: GDL's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GDL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Goodfellow Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Goodfellow Inc.
  • Ticker: GDL
  • Exchange: TSX
  • Founded: 1898
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: CA$32.538m
  • Shares outstanding: 8.56m
  • Website: https://www.goodfellowinc.com

Number of Employees


Location

  • Goodfellow Inc.
  • 225 Goodfellow Street
  • Delson
  • Quebec
  • J5B 1V5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDLTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1990

Biography

Goodfellow Inc. engages in the wholesale distribution of lumber products, building materials, and hardwood flooring products to the retail trade, industrial, and manufacturing sectors in Canada and the United States. It is also involved in the remanufacturing and distribution of lumber and wood products. The company’s decking products include accessories, composite, and wood products for outdoor spaces; and flooring products comprise planks and tiles, engineered wood floors, hardwood floors, laminates, sub-floors and accessories, wood-plastic composite, and stone product composite. It also provides insulation and sound-proofing products; lumber products comprising cedar, Douglas fir, engineered wood, glued-laminated timber, hardwood, Hemlock timber, pine, and treated wood products, as well as lumber products for the mining industry; and panels consisting of construction and hardwood plywood panels, medium and high density fiber boards, oriented strand board panels, particleboards, and melamine panels and accessories. In addition, the company offers siding products, including accessories, engineered wood sidings, and wood siding boards; cedar, asphalt, or polymer roofing products; wall concepts, such as laminate and wood planks; and interior materials comprising ceilings, solid surface products, and hardware products. Further, it offers ceiling, hardware, and solid surface. Additionally, the company provides custom timber fabrication, engineering, container and van loading, and export prep and packaging services. The company was formerly known as Goodfellow Lumber Ltd. and changed its name to Goodfellow Inc. in October 1984. Goodfellow Inc. was founded in 1898 and is headquartered in Delson, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 01:42
End of Day Share Price2020/03/27 00:00
Earnings2019/11/30
Annual Earnings2019/11/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.