Goodfellow (GDL) AI Stock Analysis

• Market Cap: C$94.68M
• Dividend Yield: 4.38%
• Average Volume (3M): 3.64K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.57
• Revenue Growth: 3.48%
• EPS Growth: -37.78%
• Country: CA
• Employees: 687
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.29
• Shares Outstanding: 8,379,054
• 10 Day Avg. Volume: 3,549
• 30 Day Avg. Volume: 3,638
• PEG Ratio: -1.09
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -7.18
• 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$12.00
• Price Target Upside: 5.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: C$12.00 ▲(5.08% Upside)

Goodfellow's overall stock score is driven by its moderate financial performance and attractive valuation. However, technical analysis indicates bearish momentum, posing a risk. The company's ability to navigate market challenges and improve cash flow will be crucial for future performance.

Goodfellow Business Overview & Revenue Model

Company Description

Goodfellow Inc. engages in the wholesale distribution of lumber products, building materials, and floor coverings to the retail trade, industrial, and manufacturing sectors in Canada and the United States. It is also involved in the remanufacturing and distribution of lumber and wood products. The company's decking products include accessories, composite, and wood products for outdoor spaces; and flooring products comprise engineered wood floors, hardwood floors, laminates, sub-floors and accessories, planks and tiles, and stone product composite. It also provides insulation and sound-proofing products; lumber products comprising cedar, Douglas fir, engineered wood, glued-laminated timber, hardwood, Hemlock timber, pine, and treated wood products, as well as lumber products for the mining industry; and panels consisting of construction and hardwood plywood panels, medium and high density fiber boards, oriented strand board panels, particleboards, and melamine panels and accessories. In addition, the company offers siding products, including accessories, engineered wood sidings, and wood siding boards; cedar, asphalt, or polymer roofing products; and wall concepts, such as laminate and wood planks. Further, it offers ceiling, hardware, and solid surface, as well as interior materials. Additionally, the company provides custom timber fabrication, engineering, container and van loading, and export prep and packaging services. It also exports its products. The company was formerly known as Goodfellow Lumber Ltd. and changed its name to Goodfellow Inc. in October 1984. Goodfellow Inc. was founded in 1898 and is headquartered in Delson, Canada.

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 company's solid equity base and low leverage provide a cushion against operational inefficiencies. However, improving cash flow from operations and stabilizing profit margins are crucial for long-term financial health.

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	527.99M	509.54M	512.82M	631.18M	615.95M	454.10M
Gross Profit	123.04M	121.75M	112.36M	136.06M	136.54M	91.75M
EBITDA	25.13M	29.48M	31.37M	55.63M	60.53M	28.36M
Net Income	8.37M	13.37M	14.69M	32.68M	37.84M	13.81M
Balance Sheet
Total Assets	348.91M	291.86M	252.75M	246.92M	237.59M	218.32M
Cash, Cash Equivalents and Short-Term Investments	3.38M	5.31M	28.38M	3.42M	4.25M	3.47M
Total Debt	80.13M	27.39M	13.23M	17.51M	24.43M	46.23M
Total Liabilities	145.45M	85.65M	57.75M	60.14M	76.64M	97.09M
Stockholders Equity	203.46M	206.21M	195.00M	186.78M	160.95M	121.23M
Cash Flow
Free Cash Flow	-10.99M	-16.56M	39.13M	21.13M	31.91M	9.97M
Operating Cash Flow	2.32M	-868.00K	42.97M	26.01M	33.28M	11.44M
Investing Cash Flow	-13.78M	-15.67M	-3.66M	-4.85M	-1.34M	-1.42M
Financing Cash Flow	21.68M	-12.44M	-14.35M	-14.75M	-33.83M	-12.28M

Goodfellow Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 11.42 is below the 20-day moving average (MA) of 11.51, below the 50-day MA of 11.95, and below the 200-day MA of 12.20, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.30 is Neutral, 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
GDL	60 Neutral	C$94.68M	11.44	4.19%	4.38%	3.48%	-37.78%
Sector *	43 Neutral	C$909.73M	-8.58	0.05%	2.69%	23.40%	-43.48%
ICLTF	―	$48.86M	―	-13.50%	―	―	―
ADN	60 Neutral	C$325.86M	22.57	4.24%	8.21%	-26.79%	-57.05%
WEF	52 Neutral	C$131.66M	―	-3.84%	―	3.89%	49.05%
CFX	47 Neutral	C$37.18M	―	-60.90%	―	-11.47%	-167.18%
CFF	44 Neutral	C$12.64M	―	-25.84%	―	-8.76%	16.86%

Goodfellow Corporate Events

Goodfellow Inc. Reports Decline in Q2 2025 Earnings Amid Market Challenges

Goodfellow Inc. reported a decline in net earnings for the second quarter of 2025, with $2.5 million compared to $5.3 million in the previous year, despite an increase in consolidated sales from $140.3 million to $152.9 million. The company attributes its performance to challenging market dynamics and inflationary pressures, although a shift in consumer preference towards Canadian-sourced wood products, driven by concerns over U.S. trade policy, has contributed to stable domestic demand and pricing.

Goodfellow Strengthens Board with New Appointment

Goodfellow Inc. has appointed Suzanne Blanchet to its Board of Directors, enhancing its strategic leadership capabilities. Blanchet’s extensive experience in industrial sectors and her previous leadership roles, including her tenure at Cascades Inc., are expected to bolster Goodfellow’s strategic initiatives and maintain its industry leadership.

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.