GFL Environmental Price-To-Sales Ratio Defies Investor Expectations.
April 21, 2023
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GFL ($NYSE:GFL) Environmental Inc is an integrated environmental services company operating across Canada and the United States. The company provides collection and disposal services for waste, as well as providing non-hazardous liquid waste management services, including vacuum truck services, hydro-excavation and other related services. Their services are essential to helping businesses and communities of all sizes sustainably manage their waste, while also providing innovative solutions to help them reduce their environmental impact. GFL Environmental Inc’s strong financial performance has been driven by disciplined capital allocation and cost management, along with strong organic growth in their core markets. With a price-to-sales ratio that defies investor expectations, GFL Environmental Inc presents an attractive investment opportunity.
Market Price
On Wednesday, GFL Environmental Inc. defied investor expectations when its stock price-to-sales ratio (PSR) increased by 0.9% from its previous closing price of 34.4, closing at 34.8. This was despite the fact that many investors had expected the PSR to decrease as the company’s revenues had been falling for the past several months. This suggests that investors are confident in the company’s ability to bounce back from its current slump and are betting on its ability to turn things around.
This unexpected increase in GFL Environmental Inc.’s PSR has been welcomed by analysts and investors alike, who are now more optimistic about the company’s future prospects. Despite the company’s current struggles, investors are now considerably more confident in its ability to recover and continue to generate profits in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gfl Environmental. More…
| Total Revenues | Net Income | Net Margin |
| 6.76k | -311.8 | -3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gfl Environmental. More…
| Operations | Investing | Financing |
| 1.1k | -1.73k | 569 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gfl Environmental. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 19.77k | 13.72k | 17.58 |
Key Ratios Snapshot
Some of the financial key ratios for Gfl Environmental are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.4% | – | 1.0% |
| FCF Margin | ROE | ROA |
| 4.7% | 0.7% | 0.2% |
Analysis
At GoodWhale, we have analyzed the fundamentals of GFL ENVIRONMENTAL and come to the conclusion that this is a high risk investment in terms of both financial and business aspects. Specifically, our Risk Rating tool has identified 3 risk warnings related to the company’s income sheet, balance sheet, and cashflow statement. For further insight into these warnings, join the GoodWhale community and become a registered user. With access to our exclusive platform, you can stay up to date on all the latest information related to GFL ENVIRONMENTAL and make informed decisions about your investments. More…
Peers
The company offers a full range of services, including waste collection, transfer, disposal, and recycling. GFL also provides environmental consulting and remediation services. The company’s competitors include Wangneng Environment Co Ltd, JPX Global Inc, and Cleanaway Waste Management Ltd.
– Wangneng Environment Co Ltd ($SZSE:002034)
Wangneng Environment Co Ltd is a Chinese company that provides environmental protection services. It has a market cap of 8.49B as of 2022 and a return on equity of 10.9%. The company offers environmental protection services such as solid waste treatment, sewage treatment, and air pollution control.
– JPX Global Inc ($OTCPK:JPEX)
JPX Global Inc is a publicly traded company with a market cap of $42.81 million as of 2022. The company has a return on equity of 9.79%. JPX Global Inc is a provider of transportation and logistics services. The company offers a variety of services including airfreight, oceanfreight, trucking, warehousing, and customs brokerage.
– Cleanaway Waste Management Ltd ($ASX:CWY)
Cleanaway Waste Management Ltd is an Australian-based company that provides waste management services across a range of industries. The company’s services include waste collection, disposal, and recycling. Cleanaway has a market cap of 5.85B as of 2022 and a Return on Equity of 3.57%. The company’s strong market position and growing customer base has helped it to generate consistent profits and shareholder returns.
Summary
GFL Environmental Inc. is a Canadian waste management and infrastructure services provider. In recent months, investors have been cautiously optimistic about GFL Environmental Inc., with its price-to-sales ratio of 2.5x indicating a less pessimistic view than previously expected. As such, investors should consider adding GFL Environmental Inc. to their portfolio.
