Goodfellow (GDL) AI Stock Analysis

• Market Cap: C$97.40M
• Dividend Yield: 4.31%
• Average Volume (3M): 2.75K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.54
• Revenue Growth: 0.62%
• EPS Growth: -23.94%
• Country: CA
• Employees: 687
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.32
• Shares Outstanding: 8,389,554
• 10 Day Avg. Volume: 2,101
• 30 Day Avg. Volume: 2,748
• PEG Ratio: -0.54
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.39
• 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

• Rating: 63 Neutral
• Price Target: C$12.50 ▲(7.67%Upside)

Goodfellow's stock score reflects a mixed outlook. Valuation is the strongest positive factor, indicating potential undervaluation and attractive dividend yield. However, financial performance is constrained by cash flow inefficiencies and declining profitability margins. Technical indicators suggest bearish momentum, further weighing on the stock's attractiveness.

Goodfellow Business Overview & Revenue Model

Company Description

Goodfellow Inc. (GDL) is a Canadian-based company that specializes in the wholesale distribution of lumber products, building materials, and hardwood flooring products. Established in the early 20th century, the company has grown to serve both domestic and international markets, catering to a wide range of clients in the construction and renovation sectors. Goodfellow's core product offerings include a variety of wood products such as decking, siding, and specialty woods, as well as related construction materials.

How the Company Makes Money

Goodfellow Inc. generates revenue primarily through the sale of its diverse range of lumber and building material products. The company sources these products from various suppliers and manufacturers, which it then distributes to a broad client base that includes retailers, industrial manufacturers, and contractors. Key revenue streams for Goodfellow include the wholesale distribution of hardwood flooring, specialty wood products, and construction materials. The company leverages its established relationships with suppliers and its extensive distribution network to efficiently deliver products to its customers. Additionally, Goodfellow may engage in strategic partnerships or agreements with manufacturers and suppliers to secure favorable purchasing terms and exclusive distribution rights, further enhancing its competitive position and profitability in the market.

Goodfellow Financial Statement Overview

Summary

Goodfellow exhibits stable revenue growth with strong balance sheet fundamentals, but faces challenges in profitability margins and cash flow generation. The strong equity base and low leverage provide stability, but improving cash flow and profit margins are crucial.

Income Statement

Goodfellow's income statement shows stable revenue with a slight decline in margins. The Gross Profit Margin for TTM is 23.80%, down from 23.90% in the previous year. Net Profit Margin also decreased to 2.18% from 2.62%. The EBIT margin is 3.55% while the EBITDA margin is 5.44%. Revenue growth rate shows a modest increase of 1.15% from the previous year, indicating steady performance, but declining profitability margins may be a concern for ongoing operations.

Balance Sheet

The balance sheet reflects a solid equity base with a Debt-to-Equity ratio of 0.32, indicating conservative leverage. The Return on Equity is 5.57%, reflecting moderate profitability on shareholders' equity. The Equity Ratio stands at 60.50%, suggesting a strong capital structure. The increase in total assets and stockholder equity over time shows stability and potential for growth, though the increase in debt might require careful management.

Cash Flow

Cash flow analysis reveals weaknesses in operational cash generation, with negative operating cash flow in the TTM. The Free Cash Flow is also negative, indicating challenges in cash generation to fund operations. Despite this, the company has managed financing activities well, maintaining liquidity. The Operating Cash Flow to Net Income Ratio is negative, suggesting inefficiencies in converting accounting profits into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
515.39M	509.54M	512.82M	631.18M	615.95M	454.10M
	Gross Profit
122.67M	121.75M	112.36M	136.06M	136.54M	91.75M
	EBIT
18.31M	20.44M	22.52M	46.55M	51.93M	20.61M
	EBITDA
28.02M	29.48M	31.37M	55.63M	60.53M	28.36M
	Net Income Common Stockholders
11.22M	13.37M	14.69M	32.68M	37.84M	13.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.24M	5.31M	28.38M	3.42M	4.25M	3.47M
	Total Assets
332.92M	291.86M	252.75M	246.92M	237.59M	218.32M
	Total Debt
64.79M	27.39M	13.23M	17.51M	24.43M	46.23M
	Net Debt
60.55M	22.07M	-15.15M	14.09M	20.17M	42.76M
	Total Liabilities
131.51M	85.65M	57.75M	60.14M	76.64M	97.09M
	Stockholders Equity
201.41M	206.21M	195.00M	186.78M	160.95M	121.23M
Cash Flow		Free Cash Flow
-18.72M	-16.56M	39.13M	21.13M	31.91M	9.97M
	Operating Cash Flow
-2.93M	-868.00K	42.97M	26.01M	33.28M	11.44M
	Investing Cash Flow
-15.31M	-15.67M	-3.66M	-4.85M	-1.34M	-1.42M
	Financing Cash Flow
15.01M	-12.44M	-14.35M	-14.75M	-33.83M	-12.28M

Goodfellow Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.61
• 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:GDL, the sentiment is Negative. The current price of 11.61 is below the 20-day moving average (MA) of 12.62, below the 50-day MA of 12.01, and below the 200-day MA of 12.65, indicating a bearish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 33.44 is Neutral, neither overbought nor oversold. The STOCH value of 16.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GDL.

Goodfellow Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADN	75 Outperform	C$320.70M	16.17	5.85%	6.50%	12.30%	-36.60%
GDL	63 Neutral	C$97.40M	8.80	5.72%	4.31%	0.62%	-23.94%
WEF	53 Neutral	C$126.70M	―	-1.51%	―	9.47%	85.29%
CFX	52 Neutral	C$45.66M	―	-59.20%	―	-9.60%	-92.59%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
CFF	49 Neutral	C$13.45M	―	-24.89%	―	-7.32%	10.08%
GFP	46 Neutral	$85.66M	―	-16.05%	―	-23.94%	24.31%

Goodfellow Corporate Events

Goodfellow Inc. Shareholders Approve All Resolutions at Annual Meeting

Goodfellow Inc. announced that all resolutions at its Annual Meeting of Shareholders were passed, with 70.38% of outstanding shares represented. The election of six directors and the reappointment of KPMG LLP as the auditor were confirmed, indicating strong shareholder support. These outcomes reinforce Goodfellow’s stable governance and operational continuity, potentially enhancing its market position and stakeholder confidence.

Goodfellow Inc. Reports Q1 2025 Financial Results with Increased Sales but Net Loss

Goodfellow Inc. reported a net loss of $2.3 million for the first quarter ended February 28, 2025, despite achieving a 5.5% increase in sales to $111.2 million. The company’s financial performance was impacted by increased overhead costs related to wages, leases, and depreciation, as well as the integration of asset acquisitions in the U.S. Goodfellow remains focused on long-term opportunities and is actively managing supply chain risks associated with U.S. tariffs.