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Global Industrial Company (GIC)
NYSE:GIC
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Global Industrial Company
(NYSE:GIC)
Rating:74Outperform
Price Target:―
Positive Factors
Execution and Market Conditions
GIC showcased better execution, and end-markets sounded better.
Operational Efficiency
Gross margin beat expectations due to lower ocean freight and actions taken on outbound freight.
Strategic Growth
Wallet growth with strategic accounts was a key positive in the quarter, and SMB growth improved.
Negative Factors
Sales Performance
Fourth-quarter sales came in below expectations and EPS were in line, with the first quarter tracking down roughly 6%.
SMB Market Challenges
SMB customers remain soft, and growth in that space was impacted by CPC inflation within paid search.
Tariff Uncertainty
Uncertainty abounds, with tariffs clouding the rest of the year.
Global Industrial Company (GIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend Yield3.81%
Average Volume (3M)113.12K
Price to Earnings (P/E)16.6
Beta (1Y)1.04
Revenue Growth-0.79%
EPS Growth-13.64%
CountryUS
Employees1,845
SectorIndustrials
Sector Strength90
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.35
Shares Outstanding38,361,103
10 Day Avg. Volume78,168
30 Day Avg. Volume113,117
Financial Highlights & Ratios
PEG Ratio25.49
Price to Book (P/B)3.38
Price to Sales (P/S)0.00
P/FCF Ratio21.64
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, through its subsidiaries, operates as a value-added industrial distributor of industrial and maintenance, repair, and operation (MRO) products in North America. The company offers industrial and MRO products under Global, GlobalIndustrial.com, Nexel, Paramount, and Interion trademarks. It offers products, including storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, food service and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials. The company offers its products to businesses; state, local, and private educational organizations; and government entities through relationship marketers, e-commerce sites, and catalogs. The company was formerly known as Systemax Inc. Global Industrial Company was founded in 1949 and is headquartered in Port Washington, New York.
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 presents a strong financial profile with consistent revenue growth, stable profitability margins, and robust cash flow. While there are some operational efficiency challenges, the company's balance sheet strength and cash flow capabilities support its growth trajectory and operational resilience.Income Statement
Global Industrial Company has demonstrated consistent revenue growth over the years, although the TTM data shows a slight decline in total revenue. The gross profit margin remains stable, suggesting efficient cost management. However, the EBIT margin has decreased, indicating potential challenges in operational efficiency. The net profit margin remains healthy, reflecting strong bottom-line performance. The positive EBITDA margin further solidifies the company's profitability stance.78
Positive
Balance Sheet
The company's balance sheet reflects a strong equity position relative to its total assets, which ensures stability. The debt-to-equity ratio is moderate, suggesting a balanced approach to leverage. However, there is a notable increase in stockholders' equity, driven by retained earnings. The company's equity ratio indicates a solid foundation, but the overall capital structure could benefit from more aggressive debt management.72
Positive
Cash Flow
Global Industrial Company's cash flow performance is robust, with a solid free cash flow generation indicating effective cash management. The operating cash flow to net income ratio is favorable, highlighting efficient conversion of income to cash. While there is a slight decrease in free cash flow from the previous year, the company maintains a strong ability to reinvest and cover operational needs.81
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.31B | 1.32B | 1.27B | 1.17B | 1.06B | 1.03B | Gross Profit |
| 453.20M | 452.00M | 435.80M | 421.20M | 374.30M | 356.90M | EBIT |
| 81.30M | 80.50M | 96.50M | 105.20M | 88.00M | 84.10M | EBITDA |
| 88.40M | 87.60M | 102.70M | 109.10M | 91.70M | 88.20M | Net Income Common Stockholders |
| 61.40M | 61.00M | 70.70M | 78.80M | 70.10M | 65.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 39.00M | 44.60M | 34.40M | 28.50M | 15.40M | 22.40M | Total Assets |
| 536.70M | 520.70M | 513.40M | 455.20M | 405.00M | 374.90M | Total Debt |
| 80.20M | 83.10M | 95.50M | 102.10M | 83.50M | 87.50M | Net Debt |
| 41.20M | 38.50M | 61.10M | 73.60M | 68.10M | 65.10M | Total Liabilities |
| 248.80M | 239.60M | 258.20M | 244.80M | 251.40M | 268.10M | Stockholders Equity |
| 287.90M | 281.10M | 255.20M | 210.40M | 153.60M | 106.80M |
| Cash Flow | Free Cash Flow | ||||
| 45.00M | 46.90M | 108.10M | 42.80M | 46.40M | 65.50M | Operating Cash Flow |
| 47.70M | 50.70M | 112.00M | 50.20M | 49.80M | 68.20M | Investing Cash Flow |
| -2.70M | -3.80M | -76.20M | -7.10M | -3.40M | -2.70M | Financing Cash Flow |
| -35.90M | -36.70M | -29.70M | -29.70M | -55.00M | -138.80M |
Global Industrial Company Technical Analysis
Neutral
26.38
Price Trends
23.44
Positive
23.61
Positive
26.72
Negative
Market Momentum
1.10
Negative
61.37
Neutral
46.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIC, the sentiment is Neutral. The current price of 26.38 is above the 20-day moving average (MA) of 25.55, above the 50-day MA of 23.44, and below the 200-day MA of 26.72, indicating a neutral trend. The MACD of 1.10 indicates Negative momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 46.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.31B | 17.39 | 19.45% | ― | 11.94% | 34.08% | |
74 Outperform | $1.01B | 16.61 | 22.15% | 3.81% | -0.79% | -13.64% | |
69 Neutral | $4.41B | 20.81 | 15.53% | 4.28% | -5.71% | -31.93% | |
68 Neutral | $853.03M | 58.51 | 5.67% | ― | 8.60% | 42.67% | |
65 Neutral | $1.25B | 1,677.02 | 0.18% | ― | 13.91% | ― | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% | |
63 Neutral | $230.93M | 36.83 | 4.71% | ― | 3.51% | 33.35% |
* Industrials Sector Average
Performance Comparison
GIC
Global Industrial Company
26.38
-7.77
-22.75%
DXPE
DXP Enterprises
83.60
34.00
68.55%
EVI
EVI Industries
18.10
-3.49
-16.16%
DSGR
Distribution Solutions Group
27.00
-9.32
-25.66%
MSM
MSC Industrial
78.68
-5.96
-7.04%
TRNS
Transcat
91.32
-43.19
-32.11%
Global Industrial Company Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 20.07%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced situation. While there were improvements in operating income and gross margin, along with a strong balance sheet and strategic growth plans, challenges such as revenue decline in Canada, supply chain disruptions due to tariffs, and potential margin volatility were also highlighted.Q1-2025 Updates
Positive Updates
Stable Revenue Amid Challenges
Global Industrial reported $321 million in revenue, a decline of less than 1% compared to the previous year, showing resilience despite a soft start in January.
Improved Operating Income
Operating income improved by 4.6% over the first quarter of 2024, thanks to strong cost controls and increased gross margin.
Increased Gross Margin
Gross margin increased by 60 basis points over the prior year and 110 basis points sequentially, benefiting from price capture and effective freight management.
No Debt and Strong Liquidity
The company maintained a strong balance sheet with $39 million in cash, no debt, and $120.5 million of excess availability under its credit facility.
Positive Customer Relationships
Global Industrial continues to enjoy high customer satisfaction scores and aims to strengthen customer relationships during the current supply chain disruptions.
Strategic Growth Initiatives
The company is developing an account-based marketing program and improving sales alignment, with initiatives like a new CRM expected to complete by summer.
Negative Updates
Revenue Decline in Canada
Canadian revenue was down 2.5% in local currency and approximately 9% in U.S. dollars due to negative currency exchange rates.
Impact of Tariffs on Supply Chain
New tariffs enacted in April have disrupted the supply chain, impacting price and demand dynamics, particularly affecting goods sourced from China.
Potential Margin Volatility
There may be increased volatility in margin rates due to tariff-related cost increases and efforts to diversify the supply chain.
Small Sales Decline
Volume was off modestly in the quarter, with revenue down 0.7% compared to the first quarter of the previous year.
Company Guidance
During the Global Industrial Company's first quarter 2025 earnings call, key guidance metrics were highlighted. The company reported a revenue of $321 million, marking a slight decline of 0.7% compared to the previous year. Despite this, gross margin improved by 60 basis points to 34.9%, and operating income increased by 4.6%, reflecting strong cost management. The company maintained a robust balance sheet with a current ratio of 2.1:1, holding $39 million in cash, no debt, and approximately $120.5 million of excess availability under its credit facility. Operating cash flow was $3.3 million, while capital expenditures were projected to be between $2 million and $3 million for the year. Strategic growth initiatives, including CRM implementation and account-based marketing, are expected to enhance customer relationships and drive future growth. The company also addressed the impact of newly enacted tariffs, which have disrupted supply chains and pricing dynamics, but emphasized its strong inventory position and efforts to mitigate these effects.Global Industrial Company Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Global Industrial Reports Q1 2025 Financial Results
Neutral
Apr 29, 2025
On April 29, 2025, Global Industrial Company reported its financial results for the first quarter ending March 31, 2025. The company experienced a slight decline in consolidated sales by 0.7% to $321.0 million compared to the previous year, but improved its gross margin to 34.9% and increased operating income by 4.6% to $18.2 million. Despite a soft start in January due to the New Year’s holiday, the company saw growth in March, driven by strategic accounts and Indoff. The company announced a cash dividend of $0.26 per share, payable on May 19, 2025. The company is addressing supply chain disruptions caused by tariffs enacted in April and remains focused on strengthening customer relationships and expanding growth initiatives.
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.