Colabor (GCL) AI Stock Analysis

• Market Cap: C$94.87M
• Dividend Yield: N/A
• Average Volume (3M): 149.21K
• Price to Earnings (P/E): 60.8
• Beta (1Y): 0.42
• Revenue Growth: -0.31%
• EPS Growth: -72.08%
• Country: CA
• Employees: 729
• Sector: Consumer Defensive
• Sector Strength: 77
• Industry: Retailers - Staples
• EPS (TTM): 0.01
• Shares Outstanding: 102,013,440
• 10 Day Avg. Volume: 173,766
• 30 Day Avg. Volume: 149,212
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.14
• Price to Cash Flow (P/CF): 2.30
• P/FCF Ratio: 1.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$2.00
• Price Target Upside: 115.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Colabor's overall stock score reflects a balance of strengths and challenges. The company demonstrates strong cash flow generation and strategic growth through acquisitions, which are positive indicators in the Retailers - Staples industry. However, challenges such as high P/E ratio, declining sales, and reduced profitability weigh on the score. The recent acquisition could provide growth opportunities, but the high valuation and operational challenges suggest caution.

Colabor Business Overview & Revenue Model

Company Description

Colabor (GCL) is a Canadian-based company that operates in the food distribution sector, primarily serving the foodservice industry. The company provides a wide range of food and non-food products to restaurants, hotels, cafeterias, and other institutional clients. Colabor focuses on delivering high-quality products and services to its customers across multiple regions in Canada.

How the Company Makes Money

Colabor makes money through its extensive distribution network, which supplies food and non-food products to the foodservice industry. The company's revenue streams primarily include the sale of goods to various foodservice establishments such as restaurants, hotels, and institutional clients. Colabor leverages its logistics and supply chain expertise to efficiently distribute products to its customers, generating revenue from both direct sales and distribution services. Significant partnerships with food producers and manufacturers allow Colabor to offer a diverse product portfolio, enhancing its revenue potential. Additionally, the company may engage in strategic acquisitions to expand its market reach and improve its earnings.

Colabor Financial Statement Overview

Summary

Colabor presents a stable financial position with strong cash flow generation and moderate leverage. While revenue growth has been stagnant, operational efficiencies are evident through steady margins. The company’s ability to convert income into cash is a notable strength, providing resilience in the Retailers - Staples industry. However, the low net profit margin and moderate ROE suggest potential areas for improvement in profitability and shareholder returns.

Income Statement

Colabor's income statement shows a mixed performance with moderate profitability and fluctuating growth. The gross profit margin for 2024 was 18.54%, and the net profit margin was 0.24%, indicating tight control over costs but very low net profitability. The revenue growth rate from 2023 to 2024 was -0.31%, suggesting a slight decline in revenue. The EBIT margin stood at 2.15%, and the EBITDA margin was 5.16%, reflecting decent operational efficiency but limited scalability in profits.

Balance Sheet

The balance sheet of Colabor reflects a balanced approach towards debt and equity. The debt-to-equity ratio for 2024 is 1.53, indicating moderate leverage, which can be a risk if not managed properly. Return on equity (ROE) was 1.42%, suggesting limited returns to shareholders. However, the equity ratio was 33.25%, signifying a healthy portion of assets funded by equity, which provides a cushion against liabilities.

Cash Flow

Colabor's cash flow statement indicates strong cash generation capabilities. Free cash flow grew significantly by 740.57% from 2023 to 2024, a positive sign of efficient capital management. The operating cash flow to net income ratio was 23.89, and the free cash flow to net income ratio was 20.19, highlighting robust cash flow relative to net income, which is favorable for liquidity and operational flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
657.09M	659.13M	574.07M	475.76M	461.32M
	Gross Profit
121.84M	42.12M	103.51M	80.07M	76.82M
	EBIT
14.13M	15.91M	11.16M	14.80M	11.68M
	EBITDA
33.94M	36.33M	27.24M	28.89M	26.79M
	Net Income Common Stockholders
1.56M	5.59M	4.07M	7.84M	3.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.47M	0.00	-42.46M	2.01M	9.19M
	Total Assets
330.44M	327.83M	240.69M	229.43M	234.00M
	Total Debt
168.07M	172.46M	90.11M	85.29M	103.31M
	Net Debt
164.60M	172.46M	132.56M	83.28M	94.11M
	Total Liabilities
220.60M	219.35M	137.80M	131.84M	145.43M
	Stockholders Equity
109.84M	108.48M	102.89M	97.59M	88.57M
Cash Flow		Free Cash Flow
31.42M	3.73M	13.39M	16.51M	35.28M
	Operating Cash Flow
37.18M	22.31M	19.30M	18.75M	37.30M
	Investing Cash Flow
-6.80M	-20.27M	-6.06M	-1.84M	-1.45M
	Financing Cash Flow
-24.22M	-7.02M	-16.51M	-23.92M	-19.52M

Colabor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.93
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GCL, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 0.93, above the 50-day MA of 0.90, and below the 200-day MA of 1.10, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GCL.

Colabor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRU	80 Outperform	C$21.14B	22.37	13.78%	1.44%	1.59%	-1.98%
EMP.A	80 Outperform	C$10.59B	16.43	12.33%	1.73%	0.31%	-7.47%
L	78 Outperform	$56.19B	27.30	19.33%	1.08%	2.49%	7.16%
ATD	76 Outperform	C$65.98B	19.46	18.67%	1.01%	7.57%	-12.56%
NWC	69 Neutral	C$2.21B	17.02	18.50%	3.39%	3.28%	1.42%
GCL	64 Neutral	C$94.87M	60.78	1.48%	―	-0.31%	-72.08%
Sector *	63 Neutral	$20.76B	13.76	-10.60%	7.37%	1.45%	9.35%

Colabor Corporate Events

Colabor Group Reports Q4 and Fiscal 2024 Results, Announces Strategic Acquisition

Colabor Group Inc. reported a 3.2% increase in fourth-quarter sales to $202.6 million, though adjusted EBITDA decreased by 3.1% to $11.3 million. For fiscal 2024, consolidated sales slightly declined by 0.3% to $657.1 million, with net earnings from continuing operations dropping to $1.6 million. The company announced an agreement to acquire assets related to Alimplus Inc.’s food distribution activities, which is expected to enhance its market position upon completion.

Colabor to Release Q4 and Fiscal Year 2024 Results

Colabor Group Inc. has announced that it will release its financial results for the fourth quarter and fiscal year ending December 28, 2024, after market close on February 25, 2025. A conference call to discuss these results will be held on February 26, 2025. This announcement facilitates stakeholder engagement by providing insights into the company’s financial performance and strategic positioning.

Colabor Group Expands Market Reach with Alimplus Acquisition

Colabor Group Inc. has announced an agreement to acquire the food distribution assets of Alimplus Inc., excluding its stores, for $51.5 million, aiming to enhance its market position in Quebec. The acquisition is expected to significantly boost Colabor’s growth strategy by expanding its customer base, creating synergies, and providing cross-selling opportunities, while financing arrangements have been secured to support the transaction.