NYSE:GPX

Stock Analysis Report

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Executive Summary

GP Strategies Corporation provides performance improvement and learning solutions worldwide. More Details


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.2%

GPX

-1.1%

US Professional Services

-0.8%

US Market


1 Year Return

-28.9%

GPX

11.4%

US Professional Services

13.8%

US Market

Return vs Industry: GPX underperformed the US Professional Services industry which returned 11.4% over the past year.

Return vs Market: GPX underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

GPXIndustryMarket
7 Day5.2%-1.1%-0.8%
30 Day-2.8%-4.1%-5.7%
90 Day6.4%6.0%8.6%
1 Year-28.9%-28.9%12.2%11.4%16.4%13.8%
3 Year-70.6%-70.6%51.2%46.6%36.9%27.8%
5 Year-63.1%-63.1%93.4%83.1%85.0%64.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPX ($9.13) is trading below our estimate of fair value ($77.14)

Significantly Below Fair Value: GPX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GPX is good value based on its PE Ratio (16x) compared to the US Professional Services industry average (21x).

PE vs Market: GPX is good value based on its PE Ratio (16x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: GPX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: GPX is good value based on its PB Ratio (0.8x) compared to the US Professional Services industry average (2.4x).


Next Steps

Future Growth

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

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPX's forecast earnings growth (25.6% per year) is above the savings rate (2.2%).

Earnings vs Market: GPX's earnings (25.6% per year) are forecast to grow faster than the US market (22.9% per year).

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

Revenue vs Market: GPX's revenue (2.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: GPX's revenue (2.6% 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 GPX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GP Strategies performed over the past 5 years?

-19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPX has a large one-off gain of $8.3M impacting its June 30 2020 financial results.

Growing Profit Margin: GPX's current net profit margins (1.8%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: GPX's earnings have declined by 19.2% per year over the past 5 years.

Accelerating Growth: GPX's earnings growth over the past year (35.8%) exceeds its 5-year average (-19.2% per year).

Earnings vs Industry: GPX earnings growth over the past year (35.8%) exceeded the Professional Services industry -1.7%.


Return on Equity

High ROE: GPX's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is GP Strategies's financial position?


Financial Position Analysis

Short Term Liabilities: GPX's short term assets ($173.2M) exceed its short term liabilities ($100.8M).

Long Term Liabilities: GPX's short term assets ($173.2M) exceed its long term liabilities ($90.2M).


Debt to Equity History and Analysis

Debt Level: GPX's debt to equity ratio (28.4%) is considered satisfactory.

Reducing Debt: GPX's debt to equity ratio has reduced from 37.1% to 28.4% over the past 5 years.

Debt Coverage: GPX's debt is well covered by operating cash flow (91%).

Interest Coverage: GPX's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if GPX'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 GPX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Adam Stedham (51 yo)

0.25

Tenure

US$834,784

Compensation

Mr. Adam H. Stedham serves as Chief Executive Officer at GP Strategies Corporation since July 1, 2020 and serves as its Director since June 9, 2020. Mr. Stedham has been the President of GP Strategies Corp ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD834.78K) is below average for companies of similar size in the US market ($USD1.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adam Stedham
President0.25yrUS$834.78k1%
$ 1.6m
Michael Dugan
Executive VP & CFO2.83yrsUS$525.41k0.35%
$ 540.3k
Donald Duquette
Executive VP of Learning Solutions16.67yrsUS$575.21k0.49%
$ 762.3k
Ann Blank
Director of Financial Reporting & Investor Relationsno datano datano data
James Galante
Senior VP0.67yrno data0.032%
$ 49.9k
Jamie Coffey
Director of Corporate Marketing & Communicationsno datano datano data
Russell Becker
Executive VP & Chief Sales Officer2.67yrsUS$552.38k0.36%
$ 558.8k
Deborah Ung
Executive Officer2.25yrsUS$452.15kno data

2.5yrs

Average Tenure

52yo

Average Age

Experienced Management: GPX's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam Stedham
President0.25yrUS$834.78k1%
$ 1.6m
Scott Greenberg
Chairman & Senior Advisor2.08yrsUS$1.02m0.93%
$ 1.5m
Richard Pfenniger
Independent Director15.67yrsUS$140.78k0.30%
$ 460.7k
Marshall Geller
Independent Director18.58yrsUS$147.40k0.94%
$ 1.5m
Jacques Manardo
Director2.08yrsUS$240.10k0.053%
$ 82.1k
Steven Koonin
Independent Director4.25yrsUS$130.27k0.096%
$ 150.1k
Samuel Robinson
Lead Independent Director2.08yrsUS$169.03k0.089%
$ 139.0k
Tamar Elkeles
Independent Director2.08yrsUS$114.78k0.048%
$ 75.4k

2.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: GPX's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

GP Strategies Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GP Strategies Corporation
  • Ticker: GPX
  • Exchange: NYSE
  • Founded: 1959
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$155.835m
  • Shares outstanding: 17.07m
  • Website: https://www.gpstrategies.com

Number of Employees


Location

  • GP Strategies Corporation
  • 70 Corporate Center
  • Suite 200
  • Columbia
  • Maryland
  • 21044
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPXNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 1975
NPDDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1975

Biography

GP Strategies Corporation provides performance improvement and learning solutions worldwide. The company operates in two segments, Workforce Excellence and Business Transformation Services. The Workforce E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 05:17
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.