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Global Industrial Company (GIC)
NYSE:GIC
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Global Industrial Company (GIC) AI Stock Analysis

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GIC

Global Industrial Company

(NYSE:GIC)

Rating:79Outperform
Price Target:
$41.00
▲(8.09% Upside)
Global Industrial Company demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. Valuation metrics suggest the stock is fairly valued with an attractive dividend yield.
Positive Factors
Financial Performance
Strong gross margin drove EPS 30% above expectations, indicating financial strength.
Growth Strategy
Focus on large strategic accounts paid off, driving growth despite sluggish SMB customers.
Negative Factors
Market Uncertainty
Uncertainty abounds, with tariffs clouding the rest of the year.
SMB Customers
Tariff overhang and a still sluggish SMB customer keep analysts cautious.

Global Industrial Company (GIC) vs. SPDR S&P 500 ETF (SPY)

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 MoneyGIC generates revenue primarily through the sale of industrial products and equipment to businesses across various sectors. The company's revenue model is based on direct sales through its online platform and physical catalogs, alongside a network of distributors and retail partners. Key revenue streams include product sales, subscription services for inventory management, and customized solutions for large-scale industrial operations. Additionally, GIC benefits from strategic partnerships with manufacturers and suppliers, enabling them to offer competitive pricing and exclusive products, which significantly contributes to their earnings. Marketing initiatives and customer loyalty programs also play a vital role in driving repeat business and increasing overall sales.

Global Industrial Company Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with record profitability and revenue growth, supported by strategic initiatives and a solid balance sheet. However, challenges were noted in the tariff environment and potential pressure on margins moving forward. Despite these challenges, the overall sentiment was positive due to the outweighing highlights.
Q2-2025 Updates
Positive Updates
Record Profitability
The company delivered an excellent second quarter performance with record profitability. Operating income improved over 26% to $33.5 million, a quarterly record for the company.
Revenue Growth
Revenue increased 3.2% to $358.9 million compared to the previous year. U.S. revenue was up 3% and Canada revenue improved 7.4% in local currency.
Gross Margin Improvement
Gross margin was a record 37.1% for the second quarter, an increase of 190 basis points over the second quarter of 2024, and 220 basis points over the first quarter of 2025.
Strong Cash Flow
The company reported strong cash flow generation in the quarter with operating cash flow from continuing operations at $31.8 million.
Liquidity and No Debt
The company maintains a strong and liquid balance sheet with no debt and approximately $120 million of excess availability under the credit facility.
Negative Updates
Small and Medium Business Weakness
There was a reduction in the smallest and more transactional customers, impacting total volume growth.
Tariff Environment Challenges
The tariff environment remains highly fluid, and the cumulative impact of incremental tariffs remain significant.
Potential Margin Pressure
While margin expansion was achieved, some of the benefits may be temporary, with sequential headwinds anticipated in the third quarter due to timing dynamics of on-hand inventory and market inflation.
Company Guidance
During the second quarter of 2025 earnings call, Global Industrial reported various impressive financial metrics. Revenue increased by 3.2% to $358.9 million, and gross margin reached a record 37.1%, up 190 basis points from the same period last year. Operating income improved over 26% to $33.5 million, setting a quarterly record, while operating margin was 9.3%. The company also highlighted strong cash flow generation, with operating cash flow from continuing operations at $31.8 million. Despite market disruptions such as tariffs, Global Industrial continued to prioritize customer service and inventory availability. The company is focused on growth through specialization and expansion, aiming to enhance their product categories and customer relationships. Additionally, they maintain a strong balance sheet with $55.1 million in cash and no debt, allowing continued investment in growth initiatives and strategic mergers and acquisitions.

Global Industrial Company Financial Statement Overview

Summary
Global Industrial Company's financial performance is commendable, with strong revenue and profit growth, effective asset management, and robust cash flow generation. The company exhibits a strong financial foundation with moderate leverage and efficient operations, positioning it well for future growth. However, attention should be paid to managing increasing debt levels to maintain financial stability.
Income Statement
85
Very Positive
The income statement of Global Industrial Company shows an impressive trajectory in revenue growth with a TTM revenue of $1.32 billion, reflecting a consistent upward trend from $1.02 billion in 2020. Gross and net profit margins are healthy at 35.0% and 5.0% respectively, indicating solid profitability, although slightly reduced from prior periods. EBITDA and EBIT margins remain robust at 7.1% and 6.7%, showcasing operational efficiency.
Balance Sheet
78
Positive
The balance sheet exhibits a stable financial position, with a debt-to-equity ratio of 0.35, suggesting moderate leverage. The equity ratio stands at 52.0%, indicating a strong equity base relative to total assets. Return on equity is solid at 21.7%, highlighting effective use of equity to generate profits. However, debt levels have increased slightly, which could present a risk if not managed carefully.
Cash Flow
82
Very Positive
The cash flow statement demonstrates strong cash generation capabilities, with an operating cash flow to net income ratio of 0.92 and a free cash flow to net income ratio of 0.87. Free cash flow growth rate is significant at 22.4% from the previous period, underscoring robust cash management and operational cash generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.32B1.32B1.27B1.17B1.06B1.03B
Gross Profit463.70M452.00M435.80M421.20M374.30M356.90M
EBITDA93.60M87.60M102.70M109.10M91.70M88.20M
Net Income66.20M61.00M70.70M78.80M70.10M65.40M
Balance Sheet
Total Assets586.50M520.70M513.40M455.20M405.00M374.90M
Cash, Cash Equivalents and Short-Term Investments55.10M44.60M34.40M28.50M15.40M22.40M
Total Debt107.00M83.10M95.50M102.10M83.50M87.50M
Total Liabilities281.30M239.60M258.20M244.80M251.40M268.10M
Stockholders Equity305.20M281.10M255.20M210.40M153.60M106.80M
Cash Flow
Free Cash Flow57.40M46.90M108.10M42.80M46.40M65.50M
Operating Cash Flow60.60M50.70M112.00M50.20M49.80M68.20M
Investing Cash Flow-7.20M-3.80M-76.20M-7.10M-3.40M-2.70M
Financing Cash Flow-37.10M-36.70M-29.70M-29.70M-55.00M-138.80M

Global Industrial Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.93
Price Trends
50DMA
31.89
Positive
100DMA
28.57
Positive
200DMA
26.30
Positive
Market Momentum
MACD
1.70
Positive
RSI
71.82
Negative
STOCH
84.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIC, the sentiment is Positive. The current price of 37.93 is above the 20-day moving average (MA) of 36.36, above the 50-day MA of 31.89, and above the 200-day MA of 26.30, indicating a bullish trend. The MACD of 1.70 indicates Positive momentum. The RSI at 71.82 is Negative, neither overbought nor oversold. The STOCH value of 84.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIC.

Global Industrial Company Risk Analysis

Global Industrial Company disclosed 29 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
80
Outperform
$1.97B23.7420.33%13.93%48.25%
79
Outperform
$1.47B22.3722.72%2.72%-1.58%-5.62%
75
Outperform
$5.16B25.4714.34%3.68%-4.11%-31.26%
71
Outperform
$1.48B381.620.65%13.48%
69
Neutral
$723.63M54.494.82%8.49%-15.53%
67
Neutral
$356.35M57.784.71%3.51%33.35%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GIC
Global Industrial Company
37.93
7.79
25.85%
DXPE
DXP Enterprises
124.31
76.03
157.48%
EVI
EVI Industries
28.40
13.05
85.02%
DSGR
Distribution Solutions Group
31.98
-2.07
-6.08%
MSM
MSC Industrial
92.27
16.76
22.20%
TRNS
Transcat
78.18
-42.46
-35.20%

Global Industrial Company Corporate Events

Executive/Board Changes
Global Industrial Awards $1M Bonus to Executive Chairman
Neutral
Aug 8, 2025

On August 7, 2025, Global Industrial Company awarded a one-time special cash bonus of $1,000,000 to Richard B. Leeds, the Executive Chairman, recognizing his leadership as Interim Chief Executive Officer from August 9, 2024, to February 17, 2025. This bonus acknowledges Mr. Leeds’ contributions during his interim role, as he did not receive any additional compensation for his service in that capacity.

DividendsFinancial Disclosures
Global Industrial Reports Record Q2 2025 Profitability
Positive
Jul 29, 2025

On July 29, 2025, Global Industrial Company announced its second quarter 2025 financial results, highlighting a record profitability with sales reaching $358.9 million, a 3.2% increase from the previous year. The company achieved a record gross margin of 37.1% and a 26.9% increase in operating income to $33.5 million. The board declared a cash dividend of $0.26 per share, payable on August 18, 2025. CEO Anesa Chaibi expressed pride in the company’s performance amid market disruptions, emphasizing a strong foundation for growth and a proactive approach to market challenges.

Executive/Board ChangesShareholder Meetings
Global Industrial Company Holds Annual Stockholders Meeting
Neutral
Jun 5, 2025

On June 2, 2025, Global Industrial Company held its Annual Meeting of Stockholders, where several key decisions were made. Stockholders elected eight directors, ratified Ernst & Young LLP as the independent auditor for fiscal year 2025, and approved, in an advisory capacity, the compensation of the company’s named executive officers. These decisions are expected to influence the company’s governance and financial oversight for the upcoming year.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 19, 2025