GDI Integrated (GDI) AI Stock Analysis

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GDI Integrated

(TSX:GDI)

74Outperform

GDI Integrated's overall stock score reflects strong financial performance, with notable revenue and cash flow growth, tempered by challenges in specific segments. The technical analysis shows mixed signals with potential bearish momentum, while valuation metrics suggest moderate pricing with future growth expectations. The earnings call emphasized strategic achievements and challenges, contributing to a balanced outlook.

GDI Integrated (GDI) vs. S&P 500 (SPY)

Market Cap

C$795.97M

Dividend YieldN/A

Average Volume (3M)8.55K

Price to Earnings (P/E)21.1

Beta (1Y)0.48

Revenue Growth1.49%

EPS Growth152.09%

CountryCA

Employees27,000

SectorIndustrials

Sector Strength89

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)0.26

Shares Outstanding14,808,318

10 Day Avg. Volume10,096

30 Day Avg. Volume8,550

Financial Highlights & Ratios

PEG Ratio0.22

Price to Book (P/B)1.54

Price to Sales (P/S)0.00

P/FCF Ratio7.56

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$47.50

Price Target Upside39.58% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

GDI Integrated Business Overview & Revenue Model

Company DescriptionGDI Integrated (GDI) is a dynamic company operating in the technology and industrial sectors. The company specializes in providing integrated solutions that combine cutting-edge technology with industrial applications to enhance operational efficiency and productivity for its clients. GDI's core products and services include advanced automation systems, industrial software solutions, and technology consulting services tailored to meet the unique needs of various industries.

How the Company Makes MoneyGDI makes money through a diversified revenue model that includes the sale of its advanced automation systems and industrial software solutions. These products are offered to a broad range of industries, including manufacturing, logistics, and energy, enabling clients to optimize their operations and reduce costs. Additionally, GDI generates revenue through consulting services, providing expert advice and customized solutions to help businesses implement and integrate new technologies effectively. Key revenue streams include direct sales, licensing fees for software solutions, and consulting service fees. Strategic partnerships with technology providers and industrial firms also play a significant role in enhancing GDI's market reach and profitability.

GDI Integrated Financial Statement Overview

Summary

GDI Integrated demonstrates consistent revenue growth and cash flow improvements, coupled with a balanced capital structure. While net profit margins and cash flow metrics are strong, rising debt levels and declining EBIT margins pose some risks.

Income Statement

Positive

GDI Integrated has shown steady revenue growth over the past years, with a revenue increase from $2.437 billion in 2023 to $2.555 billion in 2024, representing a growth rate of 4.8%. Gross profit margin is stable at around 17.8%, while the net profit margin improved to 1.25% in 2024 from 0.78% in 2023. EBITDA margin also improved, reflecting efficient operations. However, EBIT margin has declined, indicating a potential rise in operating expenses.

Balance Sheet

Positive

The company's debt-to-equity ratio stands at 0.78, which is moderate and indicates a balanced capital structure. Return on equity is 6.45%, showing a moderate return on shareholders' investments. The equity ratio of 38.6% indicates a strong equity base relative to total assets. However, the increase in total debt over the years suggests rising leverage, which could pose future risks.

Cash Flow

Positive

GDI Integrated's free cash flow increased significantly from $38 million in 2023 to $116 million in 2024, resulting in a free cash flow growth rate of 205.3%. The operating cash flow to net income ratio is strong at 4.25, reflecting robust cash generation relative to net income. The company has effectively managed its capital expenditures, contributing to healthy cash flow metrics.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.56B	2.44B	2.17B	1.60B	1.41B
	Gross Profit
456.00M	450.00M	439.00M	339.98M	305.81M
	EBIT
38.00M	51.00M	68.00M	83.80M	90.50M
	EBITDA
160.00M	135.00M	136.00M	121.58M	121.39M
	Net Income Common Stockholders
32.00M	19.00M	36.00M	43.00M	47.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.00M	30.00M	18.00M	36.67M	3.44M
	Total Assets
1.28B	1.29B	1.22B	1.08B	750.02M
	Total Debt
385.00M	434.00M	398.00M	329.85M	173.36M
	Net Debt
371.00M	417.00M	391.00M	305.54M	169.91M
	Total Liabilities
789.00M	837.00M	781.00M	693.63M	410.89M
	Stockholders Equity
496.00M	455.00M	439.00M	391.03M	339.13M
Cash Flow		Free Cash Flow
116.00M	38.00M	24.00M	97.96M	78.90M
	Operating Cash Flow
136.00M	65.00M	50.00M	116.98M	96.09M
	Investing Cash Flow
-7.00M	-37.00M	-63.00M	-182.04M	-77.99M
	Financing Cash Flow
-119.00M	-25.00M	-10.00M	88.24M	-22.03M

GDI Integrated Technical Analysis

Technical Analysis Sentiment

Positive

Last Price34.03

Price Trends

50DMA

31.66

Positive

100DMA

33.59

Positive

200DMA

34.71

Negative

Market Momentum

MACD

0.54

Negative

RSI

66.97

Neutral

STOCH

89.48

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GDI, the sentiment is Positive. The current price of 34.03 is above the 20-day moving average (MA) of 31.82, above the 50-day MA of 31.66, and below the 200-day MA of 34.71, indicating a neutral trend. The MACD of 0.54 indicates Negative momentum. The RSI at 66.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GDI.

GDI Integrated Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDI	74 Outperform	C$795.97M	21.06	7.93%	―	1.49%	152.09%
DXT	72 Outperform	C$531.06M	16.86	15.03%	4.12%	-10.24%	-23.79%
KBL	71 Outperform	C$381.19M	21.28	9.69%	3.31%	16.35%	3.98%
Sector *	64 Neutral	$4.40B	12.09	5.26%	250.03%	4.08%	-11.05%
CGY	63 Neutral	C$568.73M	123.38	0.01%	2.80%	9.02%	-76.61%

* Industrials Sector Average

Performance Comparison

TSE:GDI

GDI Integrated

34.03

-1.53

-4.30%

TSE:DXT

Dexterra Group

8.66

3.61

71.49%

TSE:KBL

K-Bro Linen

34.32

0.50

1.48%

TSE:CGY

Calian Group

41.00

-15.74

-27.74%

GDI Integrated Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 4.71%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

While GDI faced challenges in terms of overall revenue decline and specific segment setbacks, the company demonstrated strong financial management with significant increases in adjusted EBITDA, reduced long-term debt, and improved margins across most segments. The sentiment is cautiously optimistic given the positive trends in profitability and balance sheet improvements, despite the revenue declines.

Q1-2025 Updates

Positive Updates

Increase in Adjusted EBITDA

GDI recorded an adjusted EBITDA of $34 million, representing a 21% increase over Q1 of the previous year, with an adjusted EBITDA margin of 6%.

Reduction in Debt and Improved Leverage Ratio

GDI reduced its long-term debt net of cash by $14 million over Q4, 2024, bringing the leverage ratio to the mid-two’s, well below the comfort zone of 3% to 3.5%.

Business Services Canada Margin Stability

The segment recorded its 5th consecutive quarter with a 7% adjusted EBITDA margin after adjusting historic results for IT cost reallocation.

Technical Services Segment Performance

The segment achieved a 5% EBITDA margin with $246 million in revenue, a significant improvement from previous quarters traditionally ranging between 2% to 4%.

Successful Execution of Balance Sheet Improvement

GDI reduced net operating working capital by $9 million in Q1, bringing the total reduction to $53 million since Q3, 2023.

Negative Updates

Overall Revenue Decline

GDI recorded a revenue of $616 million, a decrease of $28 million or 4% compared to Q1, 2024, due to an organic decline of 7%.

Business Services USA Segment Decline

Revenue decreased by 4% over Q1, 2024, impacted by the loss of the segment's largest client at the end of Q1, 2024, and a reduction of low margin contracts.

Technical Services Segment Revenue Decline

The segment recorded a revenue of $246 million, compared to $260 million in Q1 last year, mainly due to an organic decline of 5% attributable to lower service call levels and project revenue timing.

Corporate and Other Segments Revenue Drop

Revenues dropped from $14 million to $6 million, mainly due to the sale of the superior distribution and retail business at the beginning of Q2, 2024.

Company Guidance

During the first quarter of fiscal 2025, GDI Integrated Facility Services Inc. provided guidance indicating a strong performance across its business segments. The company reported a consolidated revenue of $616 million, reflecting a 4% decline from Q1 2024, primarily due to a 7% organic decline partially offset by a 3% foreign currency increase. However, GDI's adjusted EBITDA improved by $6 million to $34 million, achieving a 6% margin, which represents a 21% increase over the prior year. The Business Services Canada segment saw revenue of $147 million and adjusted EBITDA of $11 million, maintaining a 7% margin. Business Services USA recorded $217 million in revenue, with an adjusted EBITDA of $15 million and a 7% margin, despite a 4% revenue decline. The Technical Services segment reported $246 million in revenue and a 5% EBITDA margin, both showing improvement. GDI also emphasized its strategic debt management, reducing long-term debt by $14 million and improving its leverage ratio to the mid-two's. The company remains committed to pursuing M&A opportunities, supported by a strong balance sheet and positive outlook for the rest of the year.

GDI Integrated Corporate Events

Executive/Board ChangesShareholder Meetings

GDI Integrated Facility Services Announces Board of Directors Election

Neutral

May 9, 2025

GDI Integrated Facility Services Inc. announced the election of its board of directors at the annual shareholders meeting. The elected directors received overwhelming support, with voting results filed on SEDAR+. This election is a significant event for GDI as it reinforces the company’s governance structure and potentially impacts its strategic direction in the commercial facility services industry.

Spark’s Take on TSE:GDI Stock

According to Spark, TipRanks’ AI Analyst, TSE:GDI is a Outperform.

GDI Integrated demonstrates robust financial performance with significant revenue and cash flow growth, balanced by challenges such as rising debt and declining EBIT margins. Technical analysis provides a mixed view with potential overbought indicators, while valuation suggests moderate pricing. The earnings call and corporate events highlight strategic achievements and challenges, contributing to a balanced overall outlook.

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

Business Operations and StrategyFinancial Disclosures

GDI Integrated Facility Services Reports Q1 2025 Financial Results with Improved Profitability

Positive

May 8, 2025

GDI Integrated Facility Services Inc. reported its financial results for the first quarter of 2025, showing a revenue of $616 million, which is a 4% decrease from the previous year due to an organic decline. However, the company improved its Adjusted EBITDA to $34 million, increasing its margin to 6% from 4% in Q1 2024. Net income rose significantly to $6 million, and the company reduced its long-term debt by $14 million and net operating working capital by $9 million. These results reflect strategic adjustments, including reallocating corporate technology costs to better represent segment profitability, and indicate a focus on financial stability and operational efficiency.

Spark’s Take on TSE:GDI Stock

According to Spark, TipRanks’ AI Analyst, TSE:GDI is a Outperform.

GDI Integrated demonstrates strong financial performance with notable revenue and cash flow growth, balanced by challenges in specific segments. Technical analysis presents a mixed picture with bearish short-term momentum. Valuation suggests moderate pricing with future growth expectations. The earnings call highlighted strategic achievements and challenges, contributing to a balanced overall outlook.

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

Financial Disclosures

GDI Integrated Facility Services to Announce Q1 2025 Financial Results

Neutral

Apr 24, 2025

GDI Integrated Facility Services Inc. announced it will release its financial results for the first quarter of 2025 on May 8, with a subsequent conference call scheduled for May 9. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

Spark’s Take on TSE:GDI Stock

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

GDI Integrated’s overall stock score reflects strong financial performance with steady revenue growth and improved cash flow, albeit with concerns over rising debt and declining EBIT margins. Technical indicators suggest a bearish trend, though valuation is moderate. Despite challenges in certain segments, the company shows resilience through strategic debt reduction and operational improvements.

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

Business Operations and StrategyFinancial Disclosures

GDI Integrated Facility Services Reports Strong Financial Performance in 2024

Positive

Mar 5, 2025

GDI Integrated Facility Services Inc. reported its financial results for Q4 and the full year of 2024, highlighting a revenue increase to $634 million in Q4, a 2% rise from the previous year, and a total annual revenue of $2.56 billion, marking a 5% increase over 2023. Despite a slight decrease in annual Adjusted EBITDA, the company saw a significant rise in net income, attributed to gains from business disposals, and reduced its long-term debt and net operating working capital, indicating a strong financial position and effective operational strategies.

Financial Disclosures

GDI Announces Q4 2024 Financial Results Release and Conference Call

Neutral

Feb 18, 2025

GDI Integrated Facility Services Inc. announced that it will release its financial results for the fourth quarter of 2024 on March 4, 2025. A conference call will be held on March 5, 2025, to discuss the results, with participation from key executives. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting investor decisions and market positioning.

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.