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GDI Integrated (TSE:GDI)
:GDI
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GDI Integrated
(TSX:GDI)
68Neutral
GDI Integrated (GDI) vs. S&P 500 (SPY)
Market Cap
C$718.49M
Dividend YieldN/A
Average Volume (3M)16.90K
Price to Earnings (P/E)22.4
Beta (1Y)0.45
Revenue Growth4.84%
EPS Growth67.68%
CountryCA
Employees27,000
SectorIndustrials
Sector Strength66
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.36
Shares Outstanding14,808,318
10 Day Avg. Volume8,654
30 Day Avg. Volume16,901
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)3.80
P/FCF Ratio3.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$49.33Price Target Upside61.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
GDI Integrated Business Overview & Revenue Model
Company DescriptionGDI Integrated Facility Services Inc. operates in the outsourced facility services industry. The company operates through Janitorial Canada, Janitorial USA, and Technical services segments. It offers janitorial services, such as cleaning floors, dusting desks and tables, vacuuming carpets, sanitizing kitchens and washrooms, watering plants, cleaning exterior and interior parking facilities, and removal of garbage, as well as other services, including stripping and waxing floors, carpet cleaning, heavy dust cleaning, and window cleaning. The company also provides mechanical maintenance and electrical services, such as heating, ventilation, and air conditioning services; refrigeration, mechanical and plumbing; cabling and communications; building automation and control; and security systems. In addition, it engages in janitorial products manufacturing and distribution; and sales and distribution of cleaning and sanitation supplies rental and repairs of cleaning equipment. Further, GDI Integrated Facility Services Inc. operates a network of approximately 700 franchises that provide janitorial services to small and medium-size facilities. The company 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. GDI Integrated Facility Services Inc. is headquartered in LaSalle, Canada.
How the Company Makes MoneyGDI makes money through a diversified revenue model that includes the sale of its advanced automation systems and industrial software solutions. These products are offered to a broad range of industries, including manufacturing, logistics, and energy, enabling clients to optimize their operations and reduce costs. Additionally, GDI generates revenue through consulting services, providing expert advice and customized solutions to help businesses implement and integrate new technologies effectively. Key revenue streams include direct sales, licensing fees for software solutions, and consulting service fees. Strategic partnerships with technology providers and industrial firms also play a significant role in enhancing GDI's market reach and profitability.
GDI Integrated Financial Statement Overview
Summary
GDI Integrated demonstrates consistent revenue growth and cash flow improvements, coupled with a balanced capital structure. While net profit margins and cash flow metrics are strong, rising debt levels and declining EBIT margins pose some risks.Income Statement
GDI Integrated has shown steady revenue growth over the past years, with a revenue increase from $2.437 billion in 2023 to $2.555 billion in 2024, representing a growth rate of 4.8%. Gross profit margin is stable at around 17.8%, while the net profit margin improved to 1.25% in 2024 from 0.78% in 2023. EBITDA margin also improved, reflecting efficient operations. However, EBIT margin has declined, indicating a potential rise in operating expenses.75
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 0.78, which is moderate and indicates a balanced capital structure. Return on equity is 6.45%, showing a moderate return on shareholders' investments. The equity ratio of 38.6% indicates a strong equity base relative to total assets. However, the increase in total debt over the years suggests rising leverage, which could pose future risks.72
Positive
Cash Flow
GDI Integrated's free cash flow increased significantly from $38 million in 2023 to $116 million in 2024, resulting in a free cash flow growth rate of 205.3%. The operating cash flow to net income ratio is strong at 4.25, reflecting robust cash generation relative to net income. The company has effectively managed its capital expenditures, contributing to healthy cash flow metrics.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.56B | 2.44B | 2.17B | 1.60B | 1.41B |
| Gross Profit | ||||
| 456.00M | 450.00M | 439.00M | 339.98M | 305.81M |
| EBIT | ||||
| 38.00M | 51.00M | 68.00M | 83.80M | 90.50M |
| EBITDA | ||||
| 160.00M | 135.00M | 136.00M | 121.58M | 121.39M |
| Net Income Common Stockholders | ||||
| 32.00M | 19.00M | 36.00M | 43.00M | 47.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 29.00M | 30.00M | 18.00M | 36.67M | 3.44M |
| Total Assets | ||||
| 1.28B | 1.29B | 1.22B | 1.08B | 750.02M |
| Total Debt | ||||
| 385.00M | 434.00M | 398.00M | 329.85M | 173.36M |
| Net Debt | ||||
| 371.00M | 417.00M | 391.00M | 305.54M | 169.91M |
| Total Liabilities | ||||
| 789.00M | 837.00M | 781.00M | 693.63M | 410.89M |
| Stockholders Equity | ||||
| 496.00M | 455.00M | 439.00M | 391.03M | 339.13M |
| Cash Flow | Free Cash Flow | |||
| 116.00M | 38.00M | 24.00M | 97.96M | 78.90M |
| Operating Cash Flow | ||||
| 136.00M | 65.00M | 50.00M | 116.98M | 96.09M |
| Investing Cash Flow | ||||
| -7.00M | -37.00M | -63.00M | -182.04M | -77.99M |
| Financing Cash Flow | ||||
| -119.00M | -25.00M | -10.00M | 88.24M | -22.03M |
GDI Integrated Technical Analysis
Negative
30.51
Price Trends
32.36
Negative
34.34
Negative
34.87
Negative
Market Momentum
-0.41
Positive
41.78
Neutral
29.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GDI, the sentiment is Negative. The current price of 30.51 is below the 20-day moving average (MA) of 31.47, below the 50-day MA of 32.36, and below the 200-day MA of 34.87, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 29.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GDI.
GDI Integrated Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Performance Comparison
TSE:GDI
GDI Integrated
30.51
-7.04
-18.75%
ENB
Enbridge
45.64
12.44
37.47%
TRP
TC Energy
48.45
17.48
56.44%
TSE:CU
Canadian Utilities A
37.95
9.28
32.37%
FTS
Fortis
48.93
11.37
30.27%
EMRAF
Emera
43.97
11.54
35.58%
GDI Integrated Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -12.45% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
GDI's earnings call highlighted revenue growth and debt reduction achievements, particularly in the Technical Service segment. However, challenges in the Business Service USA segment due to client loss and revenue decline in the Corporate & Other segment were noted. The sentiment remains balanced with notable achievements and challenges.Highlights
Revenue Growth
GDI recorded a revenue of $634 million in Q4, marking an increase of $12 million or 2% compared to Q4 of the previous year. For the full year, revenue increased by $118 million or 5%, reaching $2.56 billion.
Debt Reduction
The company reduced its long-term debt by $36 million in Q4, mainly due to business disposals and cash flow from operations.
Strong Performance in Technical Service Segment
The Technical Service segment recorded revenues of $257 million, an 8% increase compared to Q4 2023, with an adjusted EBITDA margin of 7%.
Successful Balance Sheet Initiatives
GDI achieved a net operating and working capital reduction of $19 million in Q4 and has reduced working capital by $44 million since Q4 2023.
Lowlights
Business Service USA Segment Challenges
The segment experienced a 10% organic revenue decline in Q4 due to the loss of its largest client for pricing reasons, resulting in a $2 million decrease in adjusted EBITDA compared to Q4 2023.
Corporate & Other Segment Revenue Decline
Corporate & Other segment reported revenues of $10 million, down from $22 million in Q4 last year, mainly due to business disposal and organic decline.
Occupancy Challenges in Canada
Business Service Canada faces a hazy outlook with occupancy levels in the Class A market below pre-pandemic levels.
Company Guidance
During the GDI Integrated Facility Services, Inc. fourth quarter fiscal 2024 results conference call, the company provided several key metrics demonstrating their financial performance and strategic initiatives. GDI recorded a quarterly revenue of $634 million, marking a 2% increase year-over-year, driven by 3% growth from acquisitions and a 1% boost from currency translations, though partially offset by a 2% organic decline. The adjusted EBITDA for the quarter was $38 million, reflecting a 6% margin, and the company reduced its long-term debt by $36 million, with an additional $19 million impact due to foreign exchange fluctuations. For the full year, revenue climbed by $118 million to $2.56 billion, with an adjusted EBITDA of $137 million at a 5% margin. The Business Service Canada segment achieved $150 million in revenue with a consistent 8% EBITDA margin, while Business Service USA reported $217 million in revenue, impacted by a significant client loss. The Technical Service segment saw an 8% revenue increase to $257 million, with a 7% EBITDA margin improvement. GDI successfully reduced its net operating and working capital by $19 million in the quarter, and is optimistic about continued strategic growth and client wins moving forward into 2025.GDI Integrated Corporate Events
Business Operations and StrategyFinancial Disclosures
GDI Integrated Facility Services Reports Strong Financial Performance in 2024
Positive
Mar 5, 2025
GDI Integrated Facility Services Inc. reported its financial results for Q4 and the full year of 2024, highlighting a revenue increase to $634 million in Q4, a 2% rise from the previous year, and a total annual revenue of $2.56 billion, marking a 5% increase over 2023. Despite a slight decrease in annual Adjusted EBITDA, the company saw a significant rise in net income, attributed to gains from business disposals, and reduced its long-term debt and net operating working capital, indicating a strong financial position and effective operational strategies.
Financial Disclosures
GDI Announces Q4 2024 Financial Results Release and Conference Call
Neutral
Feb 18, 2025
GDI Integrated Facility Services Inc. announced that it will release its financial results for the fourth quarter of 2024 on March 4, 2025. A conference call will be held on March 5, 2025, to discuss the results, with participation from key executives. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting investor decisions and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.