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  5. GDI: Hi 5i Team, Do you like GDI Integrated Facility ? [GDI Integrated Facility Services Inc. Subordinate Voting Shares]
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Investment Q&A

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Q: Hi 5i Team,
Do you like GDI Integrated Facility ?
Would you be comfortable buy this stock?

Asked by Pui on January 27, 2023
5i Research Answer:

GDI operates in a fragmented, stable industry, and provides an essential service for its customers with high-switching costs. GDI has extremely sticky revenue sources, 56% of the company’s revenue is recurring and non-cyclical in nature. The company also has a strong pricing power to offset inflation, which was demonstrated by 8% organic growth in the recent quarter.

The company’s growth is fueled mainly by acquisition. The five-year annualized revenue growth rate of 15%. GDI trades at a reasonable valuation, 9.9x times' EV/EBITDA, on the low end compared to the historical multiples. GDI has strong financial position of 1.6x current ratio, an appropriate debt-to-equity ratio of 0.84.
Overall, we like GDI. Investors can also read more details about the company in our recent report update on GDI. We would be comfortable buying.