TSX:GFL

Stock Analysis Report

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Market Cap

CA$13.1b

Last Updated

2021/06/14 01:54 UTC

Data Sources

Company Financials +

Executive Summary

GFL Environmental Inc. operates as a diversified environmental services company in Canada and the United States. More Details


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GFL is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GFL's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

4.5%

GFL

4.1%

CA Commercial Services

0.4%

CA Market


1 Year Return

63.7%

GFL

59.9%

CA Commercial Services

37.2%

CA Market

Return vs Industry: GFL exceeded the Canadian Commercial Services industry which returned 59.9% over the past year.

Return vs Market: GFL exceeded the Canadian Market which returned 37.2% over the past year.


Shareholder returns

GFLIndustryMarket
7 Day4.5%4.1%0.4%
30 Day4.2%4.7%3.4%
90 Day-1.3%-2.8%5.5%
1 Year63.9%63.7%61.0%59.9%41.6%37.2%
3 Yearn/a75.9%65.2%32.5%20.0%
5 Yearn/a168.1%144.6%62.7%38.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFL (CA$40.1) is trading below our estimate of fair value (CA$48.64)

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


Price To Earnings Ratio

PE vs Industry: GFL is unprofitable, so we can't compare its PE Ratio to the Canadian Commercial Services industry average.

PE vs Market: GFL is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GFL's PB Ratio (2.4x) is in line with the CA Commercial Services industry average.


Future Growth

How is GFL Environmental forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

75.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GFL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GFL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GFL's revenue (6.3% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: GFL's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GFL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has GFL Environmental performed over the past 5 years?

-36.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFL is currently unprofitable.

Growing Profit Margin: GFL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GFL is unprofitable, and losses have increased over the past 5 years at a rate of 36.9% per year.

Accelerating Growth: Unable to compare GFL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GFL is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (15.3%).


Return on Equity

High ROE: GFL has a negative Return on Equity (-17.49%), as it is currently unprofitable.


Financial Health

How is GFL Environmental's financial position?


Financial Position Analysis

Short Term Liabilities: GFL's short term assets (CA$962.8M) do not cover its short term liabilities (CA$1.1B).

Long Term Liabilities: GFL's short term assets (CA$962.8M) do not cover its long term liabilities (CA$9.0B).


Debt to Equity History and Analysis

Debt Level: GFL's debt to equity ratio (118.1%) is considered high.

Reducing Debt: Insufficient data to determine if GFL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GFL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GFL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 28.4% per year.


Dividend

What is GFL Environmental current dividend yield, its reliability and sustainability?

0.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GFL's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.53%).

High Dividend: GFL's dividend (0.13%) is low compared to the top 25% of dividend payers in the Canadian market (4.45%).


Stability and Growth of Payments

Stable Dividend: GFL is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: GFL is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GFL is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GFL'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?

2.7yrs

Average management tenure


CEO

Patrick Dovigi (40 yo)

no data

Tenure

CA$37,308,522

Compensation

Mr. Patrick Dovigi founded GFL Environmental Inc. and serves as its Chief Executive Officer, President and Chairman. Mr. Dovigi serves as President, Chief Executive Officer and Director of GFL Environmenta...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD30.68M) is above average for companies of similar size in the Canadian market ($USD6.56M).

Compensation vs Earnings: Patrick's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: GFL's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: GFL's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GFL insiders have sold more shares than they have bought 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

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


Key Information

  • Name: GFL Environmental Inc.
  • Ticker: GFL
  • Exchange: TSX
  • Founded: 2007
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: CA$13.145b
  • Shares outstanding: 327.80m
  • Website: https://gflenv.com

Number of Employees


Location

  • GFL Environmental Inc.
  • 100 New Park Place
  • Suite 500
  • Vaughan
  • Ontario
  • L4K 0H9
  • Canada

Listings


Biography

GFL Environmental Inc. operates as a diversified environmental services company in Canada and the United States. The company offers non-hazardous solid waste management, infrastructure and soil remediation...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 01:54
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.