Colabor (GCL) AI Stock Analysis

• Market Cap: C$82.63M
• Dividend Yield: N/A
• Average Volume (3M): 39.48K
• Price to Earnings (P/E): 55.6
• Beta (1Y): 0.61
• Revenue Growth: 0.18%
• EPS Growth: -117.44%
• Country: CA
• Employees: 670
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Food Distribution
• EPS (TTM): -0.04
• Shares Outstanding: 102,017,900
• 10 Day Avg. Volume: 26,745
• 30 Day Avg. Volume: 39,480
• PEG Ratio: -0.39
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.64
• 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: C$1.75
• Price Target Upside: 116.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ―

Colabor's overall stock score reflects its stable financial performance, highlighted by strong cash flow generation but offset by low net profitability and moderate ROE. The technical analysis indicates some bearish sentiment, with the stock trading below key moving averages. Although the valuation appears high, the recent strategic acquisition of Alimplus's assets is a strong positive, potentially driving future growth and market expansion.

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
657.60M	657.09M	659.13M	574.07M	475.76M	461.32M
	Gross Profit
99.51M	121.84M	42.12M	103.51M	80.07M	76.82M
	EBIT
11.15M	14.13M	15.91M	11.16M	14.80M	11.68M
	EBITDA
31.27M	33.94M	36.33M	27.24M	28.89M	26.79M
	Net Income Common Stockholders
-690.00K	1.56M	5.59M	4.07M	7.84M	3.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	3.47M	0.00	-42.46M	2.01M	9.19M
	Total Assets
322.80M	330.44M	327.83M	240.69M	229.43M	234.00M
	Total Debt
163.45M	168.07M	172.46M	90.11M	85.29M	103.31M
	Net Debt
163.45M	164.60M	172.46M	132.56M	83.28M	94.11M
	Total Liabilities
216.98M	220.60M	219.35M	137.80M	131.84M	145.43M
	Stockholders Equity
105.83M	109.84M	108.48M	102.89M	97.59M	88.57M
Cash Flow		Free Cash Flow
27.59M	31.42M	3.73M	13.39M	16.51M	35.28M
	Operating Cash Flow
30.21M	37.18M	22.31M	19.30M	18.75M	37.30M
	Investing Cash Flow
-3.62M	-6.80M	-20.27M	-6.06M	-1.84M	-1.45M
	Financing Cash Flow
-27.18M	-24.22M	-7.02M	-16.51M	-23.92M	-19.52M

Colabor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.81 is below the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.86, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 12.17 is Positive, 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
OGO	66 Neutral	C$47.84M	10.55	57.30%	―	10.57%	―
Sector *	65 Neutral	$8.75B	15.13	4.69%	4.84%	3.64%	-2.51%
GCL	63 Neutral	C$82.63M	55.56	-0.59%	―	0.18%	-117.44%
KPT	59 Neutral	C$91.61M	29.98	4.37%	7.86%	―	―
HBFG	59 Neutral	$148.88M	―	-183.38%	―	100.08%	-22.44%
TRBR	40 Underperform	C$86.00M	―	-1067.62%	―	-37.19%	75.51%

Colabor Corporate Events

Colabor Group Reports Q1 2025 Results and Strategic Acquisition

Colabor Group Inc. reported a slight increase in sales for the first quarter of 2025, reaching $131.7 million, a 0.4% rise compared to the same period in 2024. Despite this, the company faced a net loss of $4.0 million, attributed to a decrease in adjusted EBITDA and increased costs. The company also announced an agreement to acquire assets from Alimplus Inc., which is expected to enhance its market position. The acquisition, along with strategic efforts to reduce operating expenses and prioritize debt repayment, aims to mitigate challenges such as the slowdown in the restaurant industry and lower margins from a renewed supply agreement.

Spark’s Take on TSE:GCL Stock

According to Spark, TipRanks’ AI Analyst, TSE:GCL is a Neutral.

Colabor’s overall stock score of 64 reflects its stable financial performance, bolstered by strong cash flow generation and moderate leverage, which provides resilience. However, the high P/E ratio suggests a pricey valuation, and technical indicators show mixed signals. The positive corporate event, namely the strategic acquisition of Alimplus assets, adds a boost to growth prospects, but the stock’s attractiveness may be limited by its low net profit margin and lack of dividend yield.

To see Spark’s full report on TSE:GCL stock, click here.

Colabor Group to Hold Virtual Annual Shareholders’ Meeting

Colabor Group Inc. has announced that its Annual Meeting of Shareholders will be held virtually on May 8, 2025, allowing all shareholders to participate online regardless of location. This virtual format ensures equal participation opportunities, with registered shareholders and proxyholders able to vote and submit questions in real time, while non-registered shareholders can attend as guests.

Spark’s Take on TSE:GCL Stock

According to Spark, TipRanks’ AI Analyst, TSE:GCL is a Neutral.

Colabor’s overall stock score of 64 reflects its stable financial performance, bolstered by strong cash flow generation and moderate leverage, which provides resilience. However, the high P/E ratio suggests a pricey valuation, and technical indicators show mixed signals. The positive corporate event, namely the strategic acquisition of Alimplus assets, adds a boost to growth prospects, but the stock’s attractiveness may be limited by its low net profit margin and lack of dividend yield.

To see Spark’s full report on TSE:GCL stock, click here.

Colabor to Announce Q1 2025 Financial Results

Colabor Group Inc. has announced that it will release its first-quarter 2025 financial results on May 1, 2025, after market close. A conference call to discuss the results is scheduled for May 2, 2025, at 9:30 a.m. Eastern Time, accessible via the company’s website. This announcement indicates Colabor’s ongoing commitment to transparency and communication with its stakeholders, potentially impacting investor confidence and market positioning.

Spark’s Take on TSE:GCL Stock

According to Spark, TipRanks’ AI Analyst, TSE:GCL is a Neutral.

Colabor’s overall stock score of 64 reflects its stable financial performance, bolstered by strong cash flow generation and moderate leverage, which provides resilience. However, the high P/E ratio suggests a pricey valuation, and technical indicators show mixed signals. The positive corporate event, namely the strategic acquisition of Alimplus assets, adds a boost to growth prospects, but the stock’s attractiveness may be limited by its low net profit margin and lack of dividend yield.

To see Spark’s full report on TSE:GCL stock, click here.

Colabor Group Reports Q4 and Fiscal 2024 Results, Announces Strategic Acquisition

Colabor Group Inc. reported a 3.2% increase in fourth-quarter sales to $202.6 million, though adjusted EBITDA decreased by 3.1% to $11.3 million. For fiscal 2024, consolidated sales slightly declined by 0.3% to $657.1 million, with net earnings from continuing operations dropping to $1.6 million. The company announced an agreement to acquire assets related to Alimplus Inc.’s food distribution activities, which is expected to enhance its market position upon completion.

Colabor to Release Q4 and Fiscal Year 2024 Results

Colabor Group Inc. has announced that it will release its financial results for the fourth quarter and fiscal year ending December 28, 2024, after market close on February 25, 2025. A conference call to discuss these results will be held on February 26, 2025. This announcement facilitates stakeholder engagement by providing insights into the company’s financial performance and strategic positioning.

Colabor Group Expands Market Reach with Alimplus Acquisition

Colabor Group Inc. has announced an agreement to acquire the food distribution assets of Alimplus Inc., excluding its stores, for $51.5 million, aiming to enhance its market position in Quebec. The acquisition is expected to significantly boost Colabor’s growth strategy by expanding its customer base, creating synergies, and providing cross-selling opportunities, while financing arrangements have been secured to support the transaction.