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When Should You Buy GDI Integrated Facility Services Inc. (TSE:GDI)?

GDI Integrated Facility Services Inc. (TSE:GDI), is not the largest company out there, but it saw its share price hover around a small range of CA$35.31 to CA$38.59 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at GDI Integrated Facility Services’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for GDI Integrated Facility Services

What Is GDI Integrated Facility Services Worth?

Good news, investors! GDI Integrated Facility Services is still a bargain right now. According to our valuation, the intrinsic value for the stock is CA$60.24, but it is currently trading at CA$38.33 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, GDI Integrated Facility Services’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will GDI Integrated Facility Services generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. GDI Integrated Facility Services' earnings over the next few years are expected to increase by 83%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since GDI is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 financial health to consider, which could explain the current undervaluation.

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Are you a potential investor? If you’ve been keeping an eye on GDI for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GDI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into GDI Integrated Facility Services, you'd also look into what risks it is currently facing. When we did our research, we found 2 warning signs for GDI Integrated Facility Services (1 is concerning!) that we believe deserve your full attention.

If you are no longer interested in GDI Integrated Facility Services, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.