Related posts

Tech leads reboundOil, earnings lift marketsMild reaction to Fed
Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

GFL Environmental Inc. (GFL-T) is a waste management company that has shown decent growth in the last few years through acquisitions and reinvestment. The CEO has a good track record of execution and the company operates in an essential and growing sector. However, the high debt level and volatility in the industry are points of concern for investors.

Consensus
Positive
Valuation
Fair Value
Similar
WM, WM-N
PARTIAL BUY

Very prominent brand (visible across Canada). Stock performance strong. High debt levels a concern. Unsure of future business given leverage. If debt falls, would expect better returns. Cheapest valuation in waste management space, however investors have to weigh risk of debt levels. Earnings very stable (sticky customers) with steady demand. 

environmental
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

GFL operates a playbook of growing through acquisitions with a leveraged balance sheet, by consolidating small players in one industry (waste management). This playbook is usually referred to as a “roll-up”. GFL’s CEO has demonstrated a decent history of execution in the last few years, with 5-year revenue growth of around 18%. He also writes a good shareholder letter. As the founder, he has certainly delivered growth, with sales up 10X since 2015. This article from last year is a good read on him. GFL continues to reinvest heavily into growth. Due to the stability of the indusry, and recurring nature of the business, the debt level is quite high, with net debt/EBITDA consistently more than 5.0x. Valuation is reasonable compared to the historical average, 14.1x EV/EBITDA (historically range from 13.8x to 19x). Overall, a decent name, but investors need to be comfortable with the debt level and entrust the CEO with his capital allocation skills.
Unlock Premium - Try 5i Free

environmental
PARTIAL BUY

There's room for growth as society puts more effort into disposing waste. A little volatile. Collecting garbage is moving towards automation. Operates in an essential, but growing sector.

environmental
DON'T BUY
Are in a great space, a growth area in industrials. But their debt is too high and explains their volatility. They grow by acquiring, which adds to debt. Managed well, though.
environmental
DON'T BUY
Right industry, but not preferred way to play. Higher leverage, weaker management, shorter operating history as a public company. He owns WM, best in class, "A" credit so borrowing is cheaper.
environmental
BUY
Waste management continues to be a great business. An area that's growing quite dramatically. A big player, will continue to do well, even with complications of being "green". Good structural growth despite volatility.
environmental
DON'T BUY
Company has struggled to make profits. Believes stock price is over valued. Will keep eye on company, but does not own stock. Better opportunities for investors elsewhere.
environmental
SELL
Yet to show itself a powerful earnings generator. Hardly pays a dividend. Growth strategy is mainly by acquisition, so you have to be wary. Hard to raise prices on its customers. Never hurts to take a profit. Shouldn't be a large part of your portfolio.
environmental
DON'T BUY
It's grown only by buying companies and carries a lot of debt. There's more pricing power now after consolidation in this space. But GFL trades at too high a multiple.
environmental
DON'T BUY

It is comparable to Waste Management but the valuations are rally high in that sector. There is not a huge amount of organic growth. It has made debt-fueled acquisitions. The valuation is too rich for him and the debt is too high. You have to get it at a much lower price.

environmental
DON'T BUY

He continues to own Waste Connections (WCN-T) and when this one IPO'ed there was no reason to switch. GFL-T had more debt and were growing quickly by acquisitions and levering up the balance sheet. He is unsure if they can grow at the same rate now that they are public. He would stick with others.

environmental
DON'T BUY
It is a relative newcomer on the markets. He does not buy IPOs. He is not a huge fan of the growth-by-acquisition strategy and the huge debt they took on to manage it. There are other companies that have been on the markets longer than this one.
environmental
Showing 1 to 12 of 12 entries
  • «
  • 1
  • »

GFL Environmental Inc.(GFL-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for GFL Environmental Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

GFL Environmental Inc.(GFL-T) Frequently Asked Questions

What is GFL Environmental Inc. stock symbol?

GFL Environmental Inc. is a Canadian stock, trading under the symbol GFL-T on the Toronto Stock Exchange (GFL-CT). It is usually referred to as TSX:GFL or GFL-T

Is GFL Environmental Inc. a buy or a sell?

In the last year, 3 stock analysts published opinions about GFL-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for GFL Environmental Inc..

Is GFL Environmental Inc. a good investment or a top pick?

GFL Environmental Inc. was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for GFL Environmental Inc..

Why is GFL Environmental Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is GFL Environmental Inc. worth watching?

3 stock analysts on Stockchase covered GFL Environmental Inc. In the last year. It is a trending stock that is worth watching.

What is GFL Environmental Inc. stock price?

On 2024-03-01, GFL Environmental Inc. (GFL-T) stock closed at a price of $48.16.