Yahoo Finance At CA$51.60, Is GFL Environmental Inc. (TSE:GFL) Worth Looking At Closely?
Today we're going to take a look at the well-established GFL Environmental Inc. (TSE:GFL). The company's stock led the TSX gainers with a relatively large price hike in the past couple of weeks. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at GFL Environmental’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for GFL Environmental
What's The Opportunity In GFL Environmental?
Great news for investors – GFL Environmental is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is CA$65.93, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, GFL Environmental’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will GFL Environmental generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. GFL Environmental's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since GFL is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on GFL for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GFL. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
If you want to dive deeper into GFL Environmental, you'd also look into what risks it is currently facing. For example, we've found that GFL Environmental has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
If you are no longer interested in GFL Environmental, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
