tiprankstipranks
Trending News
More News >
GDI Integrated (TSE:GDI)
:GDI
Advertisement

GDI Integrated (GDI) AI Stock Analysis

Compare
45 Followers

Top Page

TSE:GDI

GDI Integrated

(TSX:GDI)

Rating:77Outperform
Price Target:
C$38.00
▲(15.15% Upside)
GDI Integrated demonstrates strong financial performance and effective cash management, which are the primary strengths supporting the stock score. Despite facing revenue challenges, the company’s strategic debt reduction and improved profitability are positive. Technical indicators suggest moderate optimism, while valuation metrics indicate fair pricing. Overall, the stock is positioned well with a focus on financial stability and operational efficiency.

GDI Integrated (GDI) vs. iShares MSCI Canada ETF (EWC)

GDI Integrated Business Overview & Revenue Model

Company DescriptionGDI Integrated Facility Services Inc. operates in the outsourced facility services industry. The company operates through Janitorial Canada, Janitorial USA, and Technical services segments. It offers janitorial services, such as cleaning floors, dusting desks and tables, vacuuming carpets, sanitizing kitchens and washrooms, watering plants, cleaning exterior and interior parking facilities, and removal of garbage, as well as other services, including stripping and waxing floors, carpet cleaning, heavy dust cleaning, and window cleaning. The company also provides mechanical maintenance and electrical services, such as heating, ventilation, and air conditioning services; refrigeration, mechanical and plumbing; cabling and communications; building automation and control; and security systems. In addition, it engages in janitorial products manufacturing and distribution; and sales and distribution of cleaning and sanitation supplies rental and repairs of cleaning equipment. Further, GDI Integrated Facility Services Inc. operates a network of approximately 700 franchises that provide janitorial services to small and medium-size facilities. The company serves office properties, shopping centers, industrial and institutional buildings, educational facilities, health care centers, airports, hospitals, laboratories, national retail stores, and hotels in Canada and the United States. GDI Integrated Facility Services Inc. is headquartered in LaSalle, Canada.
How the Company Makes MoneyGDI Integrated generates revenue through its diverse range of facilities management services. The company's primary revenue streams include contractual agreements with businesses for cleaning services, technical maintenance, and integrated building management solutions. These contracts often span multiple years, providing a steady income stream. GDI also engages in partnerships with technology providers to incorporate smart building solutions, which can enhance service offerings and attract more clients. Additionally, the company may earn revenue from consulting services aimed at optimizing facility operations and implementing sustainable practices. Key factors contributing to GDI's earnings include its reputation for reliable service delivery, commitment to sustainability, and ability to customize solutions to meet the specific needs of its clients.

GDI Integrated Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q1-2025)
|
% Change Since: 1.54%|
Next Earnings Date:Nov 05, 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 Financial Statement Overview

Summary
GDI Integrated's financial performance is strong, with consistent revenue growth and stable margins. The balance sheet reflects moderate leverage and healthy equity ratios, while cash flow management is a notable strength. However, increasing liabilities and slight pressure on operational efficiencies are areas to monitor.
Income Statement
82
Very Positive
GDI Integrated has demonstrated consistent revenue growth with a notable increase from $1.41 billion in 2020 to $2.53 billion in TTM (Trailing-Twelve-Months). Gross profit margin remains stable around 18%, reflecting efficient cost management. The net profit margin has improved over the years, reaching approximately 1.5% in the TTM period. EBITDA margin is strong at 6.4% in TTM, indicating effective operational performance. Nonetheless, EBIT margin has slightly decreased, suggesting some pressure on operational efficiencies.
Balance Sheet
75
Positive
The balance sheet shows a moderate debt-to-equity ratio of approximately 0.76 in TTM, indicating manageable leverage. Return on equity has improved, reaching about 7.6% in TTM, which reflects better profitability for shareholders. The equity ratio remains healthy at around 39%, showing a stable financial structure. However, total liabilities have increased over time, which could pose potential risks if not managed carefully.
Cash Flow
88
Very Positive
GDI Integrated's cash flow statement reflects strong free cash flow generation, with a significant increase from $78.9 million in 2020 to $123 million in TTM. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio also shows strong conversion of earnings into cash, supporting the company's liquidity position. Overall, cash flow management appears to be a strength for the company.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.56B2.44B2.17B1.60B1.41B
Gross Profit456.00M450.00M439.00M339.98M305.81M
EBITDA160.00M135.00M136.00M121.58M121.39M
Net Income32.00M19.00M36.00M43.00M47.99M
Balance Sheet
Total Assets1.28B1.29B1.22B1.08B750.02M
Cash, Cash Equivalents and Short-Term Investments29.00M30.00M18.00M36.67M3.44M
Total Debt385.00M434.00M398.00M329.85M173.36M
Total Liabilities789.00M837.00M781.00M693.63M410.89M
Stockholders Equity496.00M455.00M439.00M391.03M339.13M
Cash Flow
Free Cash Flow116.00M38.00M24.00M97.96M78.90M
Operating Cash Flow136.00M65.00M50.00M116.98M96.09M
Investing Cash Flow-7.00M-37.00M-63.00M-182.04M-77.99M
Financing Cash Flow-119.00M-25.00M-10.00M88.24M-22.03M

GDI Integrated Technical Analysis

Technical Analysis Sentiment
Positive
Last Price33.00
Price Trends
50DMA
32.16
Positive
100DMA
31.98
Positive
200DMA
33.81
Negative
Market Momentum
MACD
0.23
Negative
RSI
54.46
Neutral
STOCH
49.36
Neutral
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 33 is above the 20-day moving average (MA) of 32.50, above the 50-day MA of 32.16, and below the 200-day MA of 33.81, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 49.36 is Neutral, 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 (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$0.0020.427.93%1.49%152.09%
72
Outperform
C$594.01M18.9415.03%3.66%-10.24%-23.79%
71
Outperform
¥257.35B14.368.48%2.83%6.31%12.01%
71
Outperform
C$438.53M20.099.69%3.50%16.35%3.98%
70
Outperform
C$561.05M13,364.860.01%2.26%3.03%-99.78%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:GDI
GDI Integrated
33.00
-1.20
-3.51%
TSE:CGY
Calian Group
50.61
-1.66
-3.18%
TSE:DXT
Dexterra Group
9.37
3.73
66.13%
TSE:KBL
K-Bro Linen
33.96
0.13
0.38%

GDI Integrated Corporate Events

Financial Disclosures
GDI Integrated Facility Services to Announce Q2 2025 Financial Results
Neutral
Jul 23, 2025

GDI Integrated Facility Services Inc. has announced that it will release its financial results for the second quarter of 2025 on August 6, following market close. A conference call to discuss these results will be held the following day, featuring key executives. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:GDI) stock is a Hold with a C$38.50 price target. To see the full list of analyst forecasts on GDI Integrated stock, see the TSE:GDI Stock Forecast page.

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.

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.

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 02, 2025