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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Cintas Corporation (CTAS $210.03)
- $210.03 P/E (TTM): 47.73X Cap: $84.63B
- View CTAS Profile
- View Questions on CTAS
GDI Integrated Facility Services Inc. Subordinate Voting Shares (GDI $27.01)
- $27.01 P/E (TTM): 18.5X Cap: $636M
- View GDI Profile
- View Questions on GDI
- View Reports on GDI
ABM Industries Incorporated (ABM $49.17)
- $49.17 P/E (TTM): 39.34X Cap: $3.08B
- View ABM Profile
- View Questions on ABM
Boyd Group Services Inc. (BYD $225.48)
- $225.48 P/E (TTM): 442.42X Cap: $4.84B
- View BYD Profile
- View Questions on BYD
- View Reports on BYD

Q: Your thoughts on GDI please. Continue to hold?

Asked by Ross on February 14, 2025

5i Research Answer:

GDI is a small name ($794M market cap), it trades at a slightly high valuation of 25X forward earnings, but its fundamentals are mostly strong (good sales growth, profitable with good free cash flows), but margins have been falling. Its equity balance continues to expand, but debt levels are also creeping up (3.2X net debt/EBITDA). Momentum has been weak, and along with its margins, valuation is contracting to reflect the weakening fundamentals. We would like to see its next earnings before making a better assessment, but overall we would be comfortable holding it, but for near-term better setup, we might prefer BYD (different industry), ABM, CTAS.

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