GFL Environmental GFL.TO
GFL Environmental is a waste management and environmental services company in North America, providing collection, transfer, recycling, and disposal of solid and liquid waste. GFL Environmental shows solid revenue growth (16.30%), but its financial health is fragile (ND/EBITDA of 5.94) and profitability is poor (ROE of -2.25). A potential private equity take-private is the main catalyst, but uncertainty and high leverage limit the investment's appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
GFL Environmental is a waste management and environmental services company in North America, providing collection, transfer, recycling, and disposal of solid and liquid waste. GFL Environmental shows solid revenue growth (16.30%), but its financial health is fragile (ND/EBITDA of 5.94) and profitability is poor (ROE of -2.25). A potential private equity take-private is the main catalyst, but uncertainty and high leverage limit the investment's appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 2.2 |
| Quality / Moat | 1.5 |
| Valuation | 2.8 |
| Growth | 7.8 |
| Dividend | 3.5 |
| Momentum | 3.8 |
| Risk & Context | 7.5 |
OVERALL SCORE: 3.7/10
Context and risks
The balance sheet is highly leveraged (ND/EBITDA of 5.94) and the recent SECURE acquisition was financed with a US$1B term loan. In a rising interest rate environment, the cost of refinancing this debt increases, pressuring financial health and free cash flow generation.
News considered in the analysis
- GFL shares surge on report of PE bidding war — Una guerra de ofertas de capital privado para privatizar la empresa es un evento transformador que podría materializarse con una prima significativa sobre el precio de mercado.
- No Decision On Going Private: GFL CEO — La falta de una decisión inmediata introduce incertidumbre sobre el desenlace del proceso, moderando el optimismo inicial de la posible guerra de ofertas.
- GFL (GFL) Closes the SECURE Waste Infrastructure Acquisition With 75M New Shares and a US$1B Term Loan. Can Scale Offset Dilution and Leverage? — El cierre de la adquisición de SECURE, financiada con deuda y dilución, agrava un balance ya muy apalancado (DN/EBITDA de 5.94) y presionará la generación de caja libre.
- Why GFL Environmental (TSX:GFL) Is Back In The Spotlight — Artículo de análisis genérico sin información nueva relevante para la valoración.
- Waste Management Giant GFL Is Surging Over 10% Overnight: What’s Driving Up The Mid-Cap Stock? — Titular que describe el movimiento del precio sin aportar información fundamental nueva.
Verdict: Hold. The potential for a private equity bidding war offers an upside bias, but high leverage and weak profitability warrant caution.
Main risk: High leverage (ND/EBITDA of 5.94) and the recent SECURE acquisition, financed with debt, expose GFL to higher financing costs in a rising interest rate environment, which could pressure its free cash flow generation and its ability to deleverage.
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