Goodfellow (GDL) AI Stock Analysis

• Market Cap: C$92.47M
• Dividend Yield: 4.54%
• Average Volume (3M): 4.24K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.39
• Revenue Growth: 0.62%
• EPS Growth: -23.94%
• Country: CA
• Employees: 687
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.32
• Shares Outstanding: 8,405,954
• 10 Day Avg. Volume: 7,799
• 30 Day Avg. Volume: 4,240
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.20
• Price to Cash Flow (P/CF): 1.20
• P/FCF Ratio: 1.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Goodfellow's overall stock score is balanced by a strong financial position and attractive valuation metrics, despite recent profitability and cash flow challenges. The company's strategic moves in the U.S. and commitment to dividends present long-term opportunities, but technical indicators and recent financial results suggest caution in the near term.

Goodfellow Business Overview & Revenue Model

Company Description

Goodfellow Inc. (GDL) is a Canadian-based company specializing in the wholesale distribution of lumber and wood products. The company operates in several sectors including construction, manufacturing, and retail, providing a wide array of products such as hardwoods, softwoods, panels, and specialty wood products. Goodfellow also offers value-added services such as custom cutting and finishing to meet client specifications.

How the Company Makes Money

Goodfellow makes money primarily through the sale of its lumber and wood products to a diverse range of customers including retailers, manufacturers, and construction companies. The company generates revenue by sourcing wood products from various suppliers and selling them at a markup. Additionally, Goodfellow increases its earnings by providing value-added services like custom cutting, finishing, and just-in-time delivery, which allow the company to charge premium prices. Significant partnerships with both suppliers and customers enhance its market reach and stable revenue streams. The company's strong distribution network and expertise in wood products also provide competitive advantages that contribute to its profitability.

Goodfellow Financial Statement Overview

Summary

Goodfellow exhibits a stable financial structure with limited leverage, but recent declines in profitability and cash flow generation highlight potential operational challenges. While the company's equity position is strong, its ability to maintain profitability and manage cash flows effectively will be critical for future stability.

Income Statement

The company has shown a slight decline in revenue from 2023 to 2024. Gross profit margin is healthy at approximately 23.9% for 2024, however, EBIT margin has significantly dropped to zero from 4.4% the previous year, indicating challenges in operational efficiency. Net profit margin decreased to 2.6% from 2.9%, highlighting reduced profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 70.7% as of 2024. The debt-to-equity ratio remains low at 0.13, suggesting conservative leverage. However, the return on equity has decreased to 6.5%, indicating lower efficiency in generating profits from equity.

Cash Flow

The company experienced a significant decline in free cash flow from 2023 to 2024, turning negative. The operating cash flow to net income ratio also turned negative, raising concerns about cash generation relative to profits. These trends may pose liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
509.54M	512.82M	631.18M	615.95M	454.10M
	Gross Profit
121.75M	112.36M	136.06M	136.54M	91.75M
	EBIT
0.00	22.52M	46.55M	51.93M	20.61M
	EBITDA
29.48M	31.37M	55.63M	60.53M	28.36M
	Net Income Common Stockholders
13.37M	14.69M	32.68M	37.84M	13.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.31M	28.38M	3.42M	4.25M	3.47M
	Total Assets
291.86M	252.75M	246.92M	237.59M	218.32M
	Total Debt
27.39M	13.23M	17.51M	24.43M	46.23M
	Net Debt
22.07M	-15.15M	14.09M	20.17M	42.76M
	Total Liabilities
85.65M	57.75M	60.14M	76.64M	97.09M
	Stockholders Equity
206.21M	195.00M	186.78M	160.95M	121.23M
Cash Flow		Free Cash Flow
-16.56M	39.13M	21.13M	31.91M	9.97M
	Operating Cash Flow
-868.00K	42.97M	26.01M	33.28M	11.44M
	Investing Cash Flow
-15.67M	-3.66M	-4.85M	-1.34M	-1.42M
	Financing Cash Flow
-12.44M	-14.35M	-14.75M	-33.83M	-12.28M

Goodfellow Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GDL, the sentiment is Negative. The current price of 11 is below the 20-day moving average (MA) of 11.65, below the 50-day MA of 11.72, and below the 200-day MA of 12.93, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 34.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GDL.

Goodfellow Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SJ	76 Outperform	$3.67B	11.66	17.93%	1.73%	4.52%	0.51%
GDL	64 Neutral	C$92.47M	8.34	5.72%	4.54%	0.62%	-23.94%
WFG	61 Neutral	$8.23B	―	-0.07%	1.71%	-2.95%	94.75%
CFP	58 Neutral	$1.59B	―	-18.83%	―	-3.20%	-107.88%
IFP	50 Neutral	C$722.92M	―	-18.73%	―	-8.81%	-13.99%
Sector *	47 Neutral	$2.53B	-3.19	-22.23%	3.49%	4.01%	-27.90%

Goodfellow Corporate Events

Goodfellow Inc. Reports Q1 2025 Financial Results with Increased Sales but Net Loss

Goodfellow Inc. reported a net loss of $2.3 million for the first quarter ended February 28, 2025, despite achieving a 5.5% increase in sales to $111.2 million. The company’s financial performance was impacted by increased overhead costs related to wages, leases, and depreciation, as well as the integration of asset acquisitions in the U.S. Goodfellow remains focused on long-term opportunities and is actively managing supply chain risks associated with U.S. tariffs.

Spark’s Take on TSE:GDL Stock

According to Spark, TipRanks’ AI Analyst, TSE:GDL is a Neutral.

Goodfellow’s overall stock score is driven by a solid financial position despite recent profitability and cash flow challenges. The stock appears undervalued with a low P/E ratio and a high dividend yield, which are attractive for some investors. However, bearish technical indicators and negative market momentum present significant near-term risks.

To see Spark’s full report on TSE:GDL stock, click here.

Goodfellow Inc. Reports Stable 2024 Financial Results and Strategic U.S. Expansion

Goodfellow Inc. reported its financial results for the fourth quarter and fiscal year ending November 30, 2024, showing stable performance despite slight declines in annual earnings and sales compared to the previous year. The company navigated challenges from high inflation and interest rates by leveraging its diversified operations and broad customer base, while completing strategic asset acquisitions in the U.S. to enhance its wholesale lumber distribution network. This strategic move positions Goodfellow for future growth amidst evolving geopolitical conditions. Additionally, the company declared an eligible dividend of $0.25 per share, highlighting its commitment to shareholder returns.