TSX:GDI

Stock Analysis Report

GDI Integrated Facility Services

Executive Summary

GDI Integrated Facility Services Inc. operates in the outsourced facility services industry.


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

How has GDI Integrated Facility Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GDI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

GDI

1.2%

CA Commercial Services

0.6%

CA Market


1 Year Return

74.5%

GDI

29.5%

CA Commercial Services

5.8%

CA Market

Return vs Industry: GDI exceeded the Canadian Commercial Services industry which returned 29.5% over the past year.

Return vs Market: GDI exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

GDIIndustryMarket
7 Day-2.5%1.2%0.6%
30 Day3.9%2.3%0.5%
90 Day7.5%12.1%3.6%
1 Year74.5%74.5%32.4%29.5%9.1%5.8%
3 Year103.8%103.8%50.0%41.1%15.4%5.0%
5 Yearn/a93.9%67.2%33.6%14.0%

Price Volatility Vs. Market

How volatile is GDI Integrated Facility Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GDI Integrated Facility Services undervalued compared to its fair value and its price relative to the market?

64.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GDI (CA$34.81) is trading above our estimate of fair value (CA$6.46)

Significantly Below Fair Value: GDI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GDI is poor value based on its PE Ratio (64.8x) compared to the Commercial Services industry average (23.9x).

PE vs Market: GDI is poor value based on its PE Ratio (64.8x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GDI is overvalued based on its PB Ratio (2.9x) compared to the CA Commercial Services industry average (1.1x).


Next Steps

Future Growth

How is GDI Integrated Facility Services forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GDI's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if GDI's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GDI's revenue (10.9% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: GDI's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDI's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has GDI Integrated Facility Services performed over the past 5 years?

44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDI has high quality earnings.

Growing Profit Margin: GDI's current net profit margins (0.9%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: GDI has become profitable over the past 5 years, growing earnings by 44.7% per year.

Accelerating Growth: GDI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GDI had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Commercial Services industry average (2.1%).


Return on Equity

High ROE: GDI's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GDI Integrated Facility Services's financial position?


Financial Position Analysis

Short Term Liabilities: GDI's short term assets (CA$295.4M) exceed its short term liabilities (CA$181.6M).

Long Term Liabilities: GDI's short term assets (CA$295.4M) exceed its long term liabilities (CA$199.7M).


Debt to Equity History and Analysis

Debt Level: GDI's debt to equity ratio (67.9%) is considered high.

Reducing Debt: GDI's debt to equity ratio has reduced from 236.5% to 67.9% over the past 5 years.

Debt Coverage: GDI's debt is well covered by operating cash flow (30.6%).

Interest Coverage: GDI's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: GDI has a low level of unsold assets or inventory.

Debt Coverage by Assets: GDI's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is GDI Integrated Facility Services's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GDI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GDI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GDI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GDI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GDI's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Claude Bigras (57yo)

15.2yrs

Tenure

CA$2,170,133

Compensation

Mr. Claude Bigras has been the Chief Executive Officer and President of GDI Integrated Facility Services Inc. since December 2004. Mr. Bigras serves as the Chief Executive Officer of Omni Facility Services ...


CEO Compensation Analysis

Compensation vs Market: Claude's total compensation ($USD1.64M) is above average for companies of similar size in the Canadian market ($USD963.71K).

Compensation vs Earnings: Claude's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Claude Bigras
President15.2yrsCA$2.17m15.63% CA$116.5m
Stéphane Lavigne
Senior VP & CFO3.4yrsCA$914.76k0.047% CA$348.1k
Jocelyn Trottier
Executive VP3.9yrsCA$668.81k0.17% CA$1.3m
Ahmed Boomrod
Chief Operating Officer of Janitorial USA0yrsCA$1.03m1.77% CA$13.2m
Michael Masse
Chief Operating Officer of Janitorial Canada0yrsCA$754.50kno data
Fred Edwards
Chief Marketing Officer2.1yrsno data0.15% CA$1.1m
Robert Crozier
President of Atlantic Region9.1yrsno data0.15% CA$1.1m
David Hinchey
Senior Vice President of Strategic Development6.1yrsCA$482.41k0.094% CA$700.1k
Mike Murray
Executive Vice President of GDI Services (Canada) LP0.9yrsno datano data
Daniel Lindsay
President of Western Canada0yrsno datano data

3.9yrs

Average Tenure

Experienced Management: GDI's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Claude Bigras
President15.2yrsCA$2.17m15.63% CA$116.5m
Carl Youngman
Independent Director8.1yrsCA$77.00k0.089% CA$664.9k
Michael Boychuk
Independent Director4.8yrsCA$86.00k0.015% CA$113.0k
David Samuel
Independent Chairman of the Board4.8yrsno datano data
David Galloway
Independent Director8.1yrsCA$77.00k0.082% CA$609.1k
Suzanne Blanchet
Independent Director1.8yrsCA$44.92kno data
Richard Roy
Independent Director4.8yrsCA$77.00kno data

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: GDI's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GDI insiders have only sold shares 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

GDI Integrated Facility Services Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GDI Integrated Facility Services Inc.
  • Ticker: GDI
  • Exchange: TSX
  • Founded:
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: CA$745.147m
  • Shares outstanding: 21.41m
  • Website: https://gdi.com

Number of Employees


Location

  • GDI Integrated Facility Services Inc.
  • 695, 90th Avenue
  • LaSalle
  • Quebec
  • H8R 3A4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDITSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADMay 2015
GQN2DB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURMay 2015
GDIF.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDMay 2015

Biography

GDI Integrated Facility Services Inc. operates in the outsourced facility services industry. The company operates through Janitorial Canada, Janitorial USA, Technical services, and Complementary Services segments. It offers janitorial services, such as floor cleaning and finishing, window washing, furniture polishing, carpet cleaning and dusting, as well as other building services, including lawn maintenance, snow removal, and other. The company also provides mechanical maintenance and electrical services, as well as heating, ventilation, and air conditioning services; cabling services for data transport; high voltage services for commercial, industrial, institutional, government, and residential building clients; and equipment maintenance services for high-rise office buildings, manufacturing facilities, and other commercial properties. In addition, it offers damage restoration services; distributes janitorial and sanitation supplies and sales; and rents and repairs of cleaning equipment, as well as operates a network of approximately 690 franchises that provide janitorial services to small and medium-size facilities. It serves office properties, shopping centers, industrial and institutional buildings, educational facilities, health care centers, airports, hospitals, laboratories, national retail stores, and hotels in Canada and the United States. The company is headquartered in LaSalle, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:47
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.