What Does GDI Integrated Facility Services Inc.'s (TSE:GDI) Share Price Indicate?

GDI Integrated Facility Services Inc. (TSE:GDI), might not be a large cap stock, but it saw a decent share price growth of 16% on the TSX over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at GDI Integrated Facility Services’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What Is GDI Integrated Facility Services Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 9.22% above our intrinsic value, which means if you buy GDI Integrated Facility Services today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth CA$31.84, there’s only an insignificant downside when the price falls to its real value. Furthermore, GDI Integrated Facility Services’s low beta implies that the stock is less volatile than the wider market.

Check out our latest analysis for GDI Integrated Facility Services

Can we expect growth from GDI Integrated Facility Services?

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. With profit expected to grow by 35% over the next couple of years, the future seems bright for GDI Integrated Facility Services. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in GDI’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on GDI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For instance, we've identified 2 warning signs for GDI Integrated Facility Services (1 makes us a bit uncomfortable) you should be familiar with.

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.