Is There Now An Opportunity In GDI Integrated Facility Services Inc. (TSE:GDI)?

GDI Integrated Facility Services Inc. (TSE:GDI), is not the largest company out there, but it saw significant share price movement during recent months on the TSX, rising to highs of CA$59.23 and falling to the lows of CA$43.34. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether GDI Integrated Facility Services' current trading price of CA$43.34 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at GDI Integrated Facility Services’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for GDI Integrated Facility Services

Is GDI Integrated Facility Services still cheap?

Great news for investors – GDI Integrated Facility Services is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is CA$68.58, but it is currently trading at CA$43.34 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, GDI Integrated Facility Services’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will GDI Integrated Facility Services generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In GDI Integrated Facility Services' case, its revenues over the next few years are expected to grow by 42%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since GDI is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on GDI for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GDI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 3 warning signs for GDI Integrated Facility Services and we think they deserve your attention.

If you are no longer interested in GDI Integrated Facility Services, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.