Colabor (GCL) AI Stock Analysis

• Market Cap: C$4.08M
• Dividend Yield: N/A
• Average Volume (3M): 257.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 10.05%
• EPS Growth: -9028.41%
• Country: CA
• Employees: 670
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): -0.73
• Shares Outstanding: 102,017,900
• 10 Day Avg. Volume: 601,685
• 30 Day Avg. Volume: 257,506
• PEG Ratio: -0.82
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 2.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: C$0.04 ▼(-5.00% Downside)

The score is driven primarily by sharply deteriorating financial performance (losses, margin compression, and substantially higher leverage) and very weak technicals (deep downtrend with negative MACD). Valuation signals are not supportive due to negative earnings, and a recent negative refinancing/liquidity corporate event adds further downside risk.

Positive Factors

Distribution network and product breadth

Colabor operates a regional distribution network serving restaurants, institutions and retail in Eastern Canada with fresh, frozen and dry product lines plus warehousing and delivery routes. This durable logistics footprint supports recurring volume, route density benefits and supplier access over the medium term.

Top-line resilience

Revenue growth despite a difficult operating period shows underlying customer demand and retention across foodservice channels. Sustained top-line resilience provides a foundation for margin recovery and levered operational fixes, making a recovery path more feasible if cost and procurement issues are addressed.

Positive operating and free cash flow

Even with reported net losses, the company produced positive operating and free cash flow, which helps fund working capital and service obligations. This ongoing cash generation provides a tangible buffer that supports near-term operations and restructuring efforts while management addresses margin and leverage issues.

Negative Factors

Elevated leverage and thin equity

Leverage spiked to roughly 8x debt-to-equity as the equity base shrank materially. This materially reduces financial flexibility, increases refinancing and covenant risk, and limits capacity to invest in distribution assets or withstand further revenue shocks, making capital structure a persistent strategic vulnerability.

Margin compression and deep profitability loss

Sharp gross- and net-margin declines indicate structural pressure on procurement, pricing or mix. Persistently compressed margins undermine cash conversion, reduce reinvestment capacity and make the business more sensitive to volume swings, posing a lasting challenge to restoring sustainable profitability.

Refinancing and liquidity risk

Management disclosed reliance on forbearance and refinancing challenges, a structural red flag for funding continuity. If longer-term arrangements fail, operations and supplier relationships could be disrupted, potentially forcing distressed asset sales or creditor protection—an enduring downside until resolved.

Colabor Business Overview & Revenue Model

Company Description

Colabor Group Inc., together with its subsidiaries, markets and distributes food and food-related products in Canada. It operates in two segments, Distribution and Wholesale. The Distribution segment offers frozen products, dry staples, dairy products, meat, fish, seafood, fruits and vegetables, disposables, and sanitation products. This segment serves restaurants, hotels, foodservice operators, specialty food stores, healthcare institutions, schools and universities, and other retail customers. The Wholesale segment provides food, general food-related, and non-food products to distributors. Colabor Group Inc. was founded in 1962 and is headquartered in Boucherville, Canada.

How the Company Makes Money

Colabor Group Inc. generates revenue mainly through the distribution and sale of food and related products. The company operates through its two main segments: Distribution and Wholesale. The Distribution segment involves the direct supply of products to foodservice operators, including restaurants, schools, and healthcare facilities. The Wholesale segment focuses on providing products to independent distributors and retailers. Colabor's earnings are bolstered by strategic partnerships with key suppliers and a robust logistics network that ensures efficient delivery services, which enhances customer satisfaction and retention.

Colabor Financial Statement Overview

Summary

Colabor presents a stable financial position with strong cash flow generation and moderate leverage. While revenue growth has been stagnant, operational efficiencies are evident through steady margins. The company’s ability to convert income into cash is a notable strength, providing resilience in the Retailers - Staples industry. However, the low net profit margin and moderate ROE suggest potential areas for improvement in profitability and shareholder returns.

Income Statement

Colabor's income statement shows a mixed performance with moderate profitability and fluctuating growth. The gross profit margin for 2024 was 18.54%, and the net profit margin was 0.24%, indicating tight control over costs but very low net profitability. The revenue growth rate from 2023 to 2024 was -0.31%, suggesting a slight decline in revenue. The EBIT margin stood at 2.15%, and the EBITDA margin was 5.16%, reflecting decent operational efficiency but limited scalability in profits.

Balance Sheet

The balance sheet of Colabor reflects a balanced approach towards debt and equity. The debt-to-equity ratio for 2024 is 1.53, indicating moderate leverage, which can be a risk if not managed properly. Return on equity (ROE) was 1.42%, suggesting limited returns to shareholders. However, the equity ratio was 33.25%, signifying a healthy portion of assets funded by equity, which provides a cushion against liabilities.

Cash Flow

Colabor's cash flow statement indicates strong cash generation capabilities. Free cash flow grew significantly by 740.57% from 2023 to 2024, a positive sign of efficient capital management. The operating cash flow to net income ratio was 23.89, and the free cash flow to net income ratio was 20.19, highlighting robust cash flow relative to net income, which is favorable for liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	716.24M	657.09M	659.13M	574.07M	475.76M	461.32M
Gross Profit	93.99M	121.84M	42.12M	103.51M	80.07M	76.82M
EBITDA	-50.11M	33.94M	35.98M	26.70M	28.47M	26.79M
Net Income	-80.16M	1.56M	5.59M	4.07M	7.84M	3.80M
Balance Sheet
Total Assets	351.44M	330.44M	327.83M	240.69M	229.43M	234.00M
Cash, Cash Equivalents and Short-Term Investments	428.00K	3.47M	0.00	-42.46M	2.01M	9.19M
Total Debt	232.67M	168.07M	172.46M	90.11M	85.29M	103.31M
Total Liabilities	322.31M	220.60M	219.35M	137.80M	131.84M	145.43M
Stockholders Equity	29.13M	109.84M	108.48M	102.89M	97.59M	88.57M
Cash Flow
Free Cash Flow	4.00M	31.42M	3.73M	13.39M	16.51M	35.28M
Operating Cash Flow	6.62M	37.18M	22.31M	19.30M	18.75M	37.30M
Investing Cash Flow	-51.89M	-6.80M	-20.27M	-6.06M	-1.84M	-1.45M
Financing Cash Flow	39.59M	-24.22M	-7.02M	-16.51M	-23.92M	-19.52M

Colabor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GCL, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.09, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 26.16 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GCL.

Colabor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GURU	62 Neutral	C$164.07M	-120.31	-12.77%	―	3.27%	60.93%
HYTN	49 Neutral	C$24.36M	-15.85	-9999.00%	―	47.86%	-225.43%
OGO	46 Neutral	C$122.89M	-5.95	―	―	132.78%	34.00%
HBFG	45 Neutral	C$232.76M	-97.27	-95.27%	―	212.16%	-46.40%
GCL	38 Underperform	C$4.08M	-0.05	-115.79%	―	10.05%	-9028.41%

Colabor Corporate Events

Colabor Seeks CCAA Protection and Restructures Leadership to Support Formal Sale Process

Colabor Group Inc. has obtained creditor protection under the Companies’ Creditors Arrangement Act from the Superior Court of Quebec for itself and certain subsidiaries, enabling a stay of proceedings and access to debtor-in-possession financing from a banking syndicate to support ongoing operations and a formal sale and investment solicitation process. The court-approved restructuring framework, overseen by Raymond Chabot Inc. as monitor, is designed to seek the best available transaction for the company and its stakeholders, while management remains in charge of day-to-day operations; concurrently, Colabor has strengthened its leadership for this critical phase by appointing longtime finance executive Marc-Antoine Daoust as chief financial officer and moving interim CFO Yanick Blanchard into the newly formalized role of chief restructuring officer.

The most recent analyst rating on (TSE:GCL) stock is a Sell with a C$0.04 price target. To see the full list of analyst forecasts on Colabor stock, see the TSE:GCL Stock Forecast page.

Colabor Seeks CCAA Creditor Protection as TSX Halts Trading and Weighs Delisting

Colabor Group Inc. and several of its subsidiaries have applied to the Superior Court of Quebec for protection from creditors under the Companies’ Creditors Arrangement Act, initiating a formal sale and investment solicitation process to explore potential transactions for the businesses and their assets. The application seeks a stay of proceedings, debtor-in-possession financing from major Canadian banks to fund operations during restructuring, and the appointment of Raymond Chabot Inc. as monitor, while trading in Colabor’s shares has been halted and the Toronto Stock Exchange has placed the company under expedited delisting review, highlighting the severity of its financing challenges after failing to secure required refinancing and equity commitments in 2025.

The most recent analyst rating on (TSE:GCL) stock is a Sell with a C$0.04 price target. To see the full list of analyst forecasts on Colabor stock, see the TSE:GCL Stock Forecast page.

Colabor Group Faces Refinancing Challenges Amid Strategic Review

Colabor Group Inc. has announced difficulties in securing satisfactory refinancing options as part of its strategic alternatives review. The company is negotiating with senior lenders for further amendments to its forbearance agreements to ensure additional liquidity for its operations. However, without successful long-term arrangements or strategic alternatives, Colabor’s operations could be severely impacted, potentially leading to creditor protection measures and a decrease in investment value.

The most recent analyst rating on (TSE:GCL) stock is a Hold with a C$0.40 price target. To see the full list of analyst forecasts on Colabor stock, see the TSE:GCL Stock Forecast page.

Colabor Group Announces Board Resignation

Colabor Group Inc. announced the resignation of Ms. Danièle Bergeron from its Board of Directors following her acceptance of a position with another major company. The interim Chairman of the Board, Mr. Denis Mathieu, expressed gratitude for Ms. Bergeron’s valuable contributions to the company. This change in the board could signal a shift in company dynamics and may impact its strategic direction.

The most recent analyst rating on (TSE:GCL) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Colabor stock, see the TSE:GCL Stock Forecast page.