NYSE:GPX

Stock Analysis Report

Executive Summary

GP Strategies Corporation provides performance improvement and learning solutions worldwide.

Rewards

Earnings are forecast to grow 56.56% per year

Risk Analysis

Debt is not well covered by operating cash flow

Profit margins (1.1%) are lower than last year (1.8%)



Snowflake Analysis

Moderate growth potential with mediocre 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

-3.3%

GPX

0.8%

US Professional Services

0.06%

US Market


1 Year Return

-19.5%

GPX

30.1%

US Professional Services

19.4%

US Market

Return vs Industry: GPX underperformed the US Professional Services industry which returned 30.1% over the past year.

Return vs Market: GPX underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

GPXIndustryMarket
7 Day-3.3%0.8%0.06%
30 Day-8.8%3.1%1.1%
90 Day9.8%13.3%8.9%
1 Year-19.5%-19.5%31.3%30.1%21.9%19.4%
3 Year-45.5%-45.5%61.9%56.7%48.9%39.3%
5 Year-62.1%-62.1%81.7%71.8%71.9%53.1%

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?

37.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GPX ($14.06) is trading above our estimate of fair value ($1.12)

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


Price To Earnings Ratio

PE vs Industry: GPX is poor value based on its PE Ratio (38.8x) compared to the Professional Services industry average (19.3x).

PE vs Market: GPX is poor value based on its PE Ratio (38.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: GPX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: GPX is good value based on its PB Ratio (1.2x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

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

56.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPX's forecast earnings growth (56.6% per year) is above the savings rate (1.7%).

Earnings vs Market: GPX's earnings (56.6% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: GPX's revenue (5.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GPX's revenue (5.9% 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?

-24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPX has high quality earnings.

Growing Profit Margin: GPX's current net profit margins (1.1%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: GPX's earnings have declined by -24.5% per year over the past 5 years.

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

Earnings vs Industry: GPX had negative earnings growth (-33.3%) over the past year, making it difficult to compare to the Professional Services industry average (10.4%).


Return on Equity

High ROE: GPX's Return on Equity (3.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GP Strategies's financial position?


Financial Position Analysis

Short Term Liabilities: GPX's short term assets ($209.6M) exceed its short term liabilities ($107.7M).

Long Term Liabilities: GPX's short term assets ($209.6M) exceed its long term liabilities ($146.8M).


Debt to Equity History and Analysis

Debt Level: GPX's debt to equity ratio (58%) is considered high.

Reducing Debt: GPX's debt to equity ratio has increased from 2.6% to 58% over the past 5 years.

Debt Coverage: GPX's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: GPX's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet

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

Debt Coverage by Assets: GPX's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GPX'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 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?

2.3yrs

Average management tenure


CEO

Scott Greenberg (63yo)

14.8yrs

Tenure

US$1,137,028

Compensation

Mr. Scott N. Greenberg serves as Independent Director of VerifyMe, Inc. since November 19, 2019. He has been the Chief Executive Officer at GP Strategies Corporation, a subsidiary of NPDC since April 2005  ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD1.14M) is about average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Greenberg
Chairman & CEO14.8yrsUS$1.14m0.93% $2.2m
Adam Stedham
President2.3yrsUS$917.89k0.065% $155.0k
Michael Dugan
Executive VP & CFO2.3yrsUS$576.96k0.035% $84.0k
Russell Becker
Chief Sales Officer2.1yrsUS$552.38k0.018% $43.4k
Donald Duquette
Executive VP of Learning Solutions16.1yrsUS$589.68k0.27% $633.6k
Ann Blank
Director of Financial Reporting & Investor Relations0yrsno datano data
Kenneth Crawford
Executive VP12.8yrsUS$413.83k0.17% $407.5k
Jamie Coffey
Director of Corporate Marketing & Communications0yrsno datano data
Patricia Begley
Executive Vice President1.6yrsno data0.051% $122.7k
Deborah Ung
Executive Officer1.7yrsUS$452.15k0.077% $184.4k

2.3yrs

Average Tenure

59yo

Average Age

Experienced Management: GPX's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Greenberg
Chairman & CEO14.8yrsUS$1.14m0.93% $2.2m
Richard Pfenniger
Independent Director15.1yrsUS$119.36k0.27% $650.9k
Marshall Geller
Independent Director18yrsUS$136.44k0.92% $2.2m
Jacques Manardo
Director1.5yrsUS$73.85k0.026% $62.1k
Steven Koonin
Independent Director3.7yrsUS$107.61k0.074% $177.0k
Samuel Robinson
Lead Independent Director1.5yrsUS$126.61k0.048% $114.8k
Tamar Elkeles
Independent Director1.5yrsUS$37.08k0.026% $62.1k

1.5yrs

Average Tenure

64yo

Average Age

Experienced Board: GPX's board of directors are not considered experienced ( 1.5 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$238.667m
  • Shares outstanding: 16.97m
  • 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 two segments, Workforce Excellence and Business Transformation Services. The Workforce Excellence segment offers managed learning services, including strategic learning and development consulting services; digital learning content design and development solutions; and a suite of managed learning operations services, such as managed facilitation and delivery, managed training administration and logistics, help desk support, tuition reimbursement management services, event management, and vendor management. It also provides engineering and technical services comprising design, development and delivery of technical work-based learning, plant launch initiatives, engineering design and construction management, fabrication, management, operational excellence consulting, chemical demilitarization, homeland security, and emergency management support services. The Business Transformation Services segment offers custom product sales training and service technical training primarily to automotive manufacturers and service technicians. It also provides organizational development solutions, including strategy, leadership, employee engagement and culture consulting, enterprise technology implementation and adoption, and organization design and business performance consulting. The company serves companies in the automotive, financial services and insurance, pharmaceutical, oil and gas, power, chemical, electronics and technology, manufacturing, software, retail, healthcare, education, and food and beverage industries, as well as government agencies. GP Strategies Corporation was founded in 1959 and is headquartered in Columbia, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:55
End of Day Share Price2020/02/19 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.