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Global Industrial Company (GIC)
:GIC
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Global Industrial Company
(NYSE:GIC)
68Neutral
Global Industrial Company (GIC) vs. S&P 500 (SPY)
Market Cap
$837.10M
Dividend Yield4.62%
Average Volume (3M)109.53K
Price to Earnings (P/E)13.8
Beta (1Y)1.03
Revenue Growth3.26%
EPS Growth-14.20%
CountryUS
Employees1,845
SectorIndustrials
Sector Strength63
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.58
Shares Outstanding38,311,253
10 Day Avg. Volume93,681
30 Day Avg. Volume109,532
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.65
Price to Cash Flow (P/CF)13.50
P/FCF Ratio13.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Global Industrial Company Business Overview & Revenue Model
Company DescriptionGlobal Industrial Company (GIC) is a diversified multinational conglomerate operating across multiple sectors including manufacturing, engineering, and technology. GIC specializes in providing innovative industrial solutions and high-quality products such as industrial machinery, engineering services, and advanced technological systems. With a focus on sustainability and efficiency, GIC serves a wide range of industries including automotive, aerospace, and energy, supporting their operational and technological needs.
How the Company Makes MoneyGlobal Industrial Company (GIC) generates revenue through a variety of channels, primarily by selling industrial machinery and equipment, offering engineering services, and providing technological solutions. Key revenue streams include direct product sales to industries requiring heavy machinery and equipment, contracts for engineering projects and services, and licensing fees for proprietary technology solutions. Significant partnerships with major corporations worldwide enhance GIC's market reach and product offerings, contributing to its earnings. Additionally, GIC invests in research and development to innovate and expand its product lines, thereby creating new revenue opportunities.
Global Industrial Company Financial Statement Overview
Summary
Global Industrial Company has a stable revenue growth and improved balance sheet with reduced leverage and a higher equity ratio. However, declines in profitability margins and cash flow generation indicate areas needing operational improvement.Income Statement
The company shows a stable revenue growth trend with a 3.26% increase from 2023 to 2024. Gross profit margin is steady at 34.36%, indicating efficient cost management. However, the net profit margin decreased to 4.64% from 5.55% in the previous year, suggesting higher expenses or reduced cost efficiency. The EBIT and EBITDA margins decreased slightly, pointing to potential operational challenges.75
Positive
Balance Sheet
The debt-to-equity ratio improved to 0.30, showing a stronger equity position and reduced reliance on debt. The equity ratio increased to 53.98%, indicating a solid capital structure. Return on equity decreased to 21.70% from 27.70%, suggesting lower profitability on shareholders' equity.70
Positive
Cash Flow
Free cash flow decreased by 56.88% due to a drop in operating cash flow. The operating cash flow to net income ratio is 0.83, indicating limited cash generation relative to net income. However, the free cash flow to net income ratio remains robust at 0.76.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.32B | 1.27B | 1.17B | 1.06B | 1.03B |
| Gross Profit | ||||
| 452.00M | 435.80M | 421.20M | 374.30M | 356.90M |
| EBIT | ||||
| 80.50M | 96.50M | 105.20M | 88.00M | 84.10M |
| EBITDA | ||||
| 87.60M | 102.70M | 109.10M | 91.70M | 88.20M |
| Net Income Common Stockholders | ||||
| 61.00M | 70.70M | 78.80M | 70.10M | 65.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 44.60M | 34.40M | 28.50M | 15.40M | 22.40M |
| Total Assets | ||||
| 520.70M | 513.40M | 455.20M | 405.00M | 374.90M |
| Total Debt | ||||
| 83.10M | 95.50M | 102.10M | 83.50M | 87.50M |
| Net Debt | ||||
| 38.50M | 61.10M | 73.60M | 68.10M | 65.10M |
| Total Liabilities | ||||
| 239.60M | 258.20M | 244.80M | 251.40M | 268.10M |
| Stockholders Equity | ||||
| 281.10M | 255.20M | 210.40M | 153.60M | 106.80M |
| Cash Flow | Free Cash Flow | |||
| 46.90M | 108.10M | 42.80M | 46.40M | 65.50M |
| Operating Cash Flow | ||||
| 50.70M | 112.00M | 50.20M | 49.80M | 68.20M |
| Investing Cash Flow | ||||
| -3.80M | -76.20M | -7.10M | -3.40M | -2.70M |
| Financing Cash Flow | ||||
| -36.70M | -29.70M | -29.70M | -55.00M | -138.80M |
Global Industrial Company Technical Analysis
Negative
21.85
Price Trends
23.42
Negative
24.76
Negative
28.26
Negative
Market Momentum
-0.26
Negative
43.71
Neutral
20.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIC, the sentiment is Negative. The current price of 21.85 is below the 20-day moving average (MA) of 22.65, below the 50-day MA of 23.42, and below the 200-day MA of 28.26, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 20.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIC.
Global Industrial Company Risk Analysis
Global Industrial Company disclosed 28 risk factors in its most recent earnings report. Global Industrial Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Global Industrial Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $42.68B | 37.14 | 33.04% | 2.15% | 2.71% | -0.63% | |
74 Outperform | $8.09B | 21.34 | 22.70% | 0.74% | 0.37% | 3.52% | |
71 Outperform | $45.40B | 24.19 | 58.98% | 0.87% | 4.19% | 6.60% | |
70 Outperform | $7.01B | 11.02 | 14.34% | 1.24% | -2.53% | -4.03% | |
68 Neutral | $837.10M | 13.85 | 22.49% | 4.62% | 3.26% | -14.20% | |
68 Neutral | $3.97B | 18.75 | 15.53% | 4.72% | -5.71% | -31.93% | |
62 Neutral | $7.26B | 12.38 | 3.01% | 3.40% | 3.58% | -14.13% |
* Industrials Sector Average
Performance Comparison
GIC
Global Industrial Company
21.85
-21.30
-49.36%
AIT
Applied Industrial Technologies
210.85
15.37
7.86%
FAST
Fastenal Company
74.42
0.21
0.28%
MSM
MSC Industrial
71.22
-20.34
-22.21%
GWW
WW Grainger
942.43
-64.26
-6.38%
WCC
Wesco International
136.08
-34.74
-20.34%
Global Industrial Company Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -9.07% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
Global Industrial demonstrated some positive aspects such as revenue growth in 2024, strong cash position, and improved customer satisfaction. However, the fourth quarter showed significant revenue decline, gross margin pressure, and challenges in SG&A and operating income, indicating a somewhat balanced outlook.Highlights
Revenue Growth in 2024
Global Industrial generated revenue of $1.3 billion in 2024, an improvement of 3.3% driven by the addition of Indoff in May 2023.
Strong Cash Position
Ended 2024 with more than $44 million in cash, no debt, and approximately $120.5 million of excess availability under the credit facility.
Customer Satisfaction and Retention
Achieved strong retention rates and customer satisfaction scores, improved fulfillment quality with a 20% reduction in damage claims in 2024.
E-commerce Performance
E-commerce and broader digital sales represented more than 60% of total annual order volume in the core global industrial business.
Private Brand Demand
Private brand demand showed modest growth in absolute dollars as well as a percentage of total sales in 2024, with private brand sales in the low 40% range as a percentage of total sales.
Lowlights
Fourth Quarter Revenue Decline
Fourth quarter revenue was $302.3 million, down 5.6% over Q4 of last year, with underperformance in the core SMB customer base and negative impacts from CPC inflation.
Gross Margin Pressure
Gross margin was 33.8% in the fourth quarter, in line with the year-ago period, but declined sequentially due to increased transportation costs.
SG&A and Operating Income Challenges
SG&A spending was $87.8 million, an increase of 1.2% from the year-ago period, with negative leverage due to soft top-line performance. Operating income from continuing operations was $14.5 million with an operating margin of 4.8%.
Soft Start to 2025
The start of 2025 showed top-line volatility, largely due to the shift in New Year's holiday timing and weather-related shutdowns. First-quarter revenue is pacing in line with fourth-quarter results.
Company Guidance
During the call, Global Industrial provided guidance for 2024 and early insights into 2025. Revenue for 2024 reached $1.3 billion, reflecting a 3.3% increase largely due to the acquisition of Indoff in May 2023. However, the fourth quarter saw a 5.6% revenue decline, marking it as the weakest period of the year, with continued challenges in the core SMB customer base. Gross margin was reported at 33.8% for the fourth quarter, though sequentially lower due to increased transportation costs. Despite these challenges, the company achieved strong retention rates and customer satisfaction scores, with a notable 20% reduction in damage claims. In 2024, e-commerce and digital sales accounted for over 60% of total order volume, and private branding showed modest growth, making up about 40% of total sales. Looking ahead, capital expenditures are anticipated to be between $2 million and $3 million in 2025. Management emphasized strategic initiatives to enhance operational efficiencies, improve customer experience, and drive long-term growth, while maintaining a strong balance sheet with $44.6 million in cash and no debt.Global Industrial Company Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Global Industrial Appoints Anesa Chaibi as New CEO
Positive
Feb 10, 2025
On February 10, 2025, Global Industrial Company announced the appointment of Anesa Chaibi as its new Chief Executive Officer, effective February 17, 2025. Anesa Chaibi, who brings over 30 years of experience in the industrial B2B space, will also join the company’s Board of Directors. The appointment of Ms. Chaibi, who previously held senior positions at Coalesce Capital Management and CoolSys, Inc., marks a significant leadership transition as Richard Leeds resigns from his interim CEO role but continues as Executive Chairman. This leadership change is poised to enhance the company’s market positioning and drive future growth opportunities, leveraging Ms. Chaibi’s extensive industry expertise.
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.