GDI Integrated Facility Services Inc. (GDI.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

GDI Integrated Facility Services Inc.operates in the outsourced facility services industry.The company operates through Janitorial Canada, Janitorial USA, and Technical services segments.

It offers janitorial services, such as cleaning floors, dusting desks and tables, vacuuming carpets, sanitizing kitchens and washrooms, watering plants, cleaning exterior and interior parking facilities, and removal of garbage, as well as other services, including stripping and waxing floors, carpet cleaning, heavy dust cleaning, and window cleaning.The company also provides mechanical maintenance and electrical services, such as heating, ventilation, and air conditioning services; refrigeration, mechanical and plumbing; cabling and communications; building automation and control; and security systems.In addition, it engages in janitorial products manufacturing and distribution; and sales and distribution of cleaning and sanitation supplies rental and repairs of cleaning equipment.

Further, GDI Integrated Facility Services Inc.operates a network of approximately 700 franchises that provide janitorial services to small and medium-size facilities.The company serves office properties, shopping centers, industrial and institutional buildings, educational facilities, health care centers, airports, hospitals, laboratories, national retail stores, and hotels in Canada and the United States.

GDI Integrated Facility Services Inc.is headquartered in LaSalle, Canada.

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1.b. Last Insights on GDI

GDI Integrated Facility Services Inc.'s recent performance was negatively impacted by mixed fundamentals, despite strong profits reported earlier. The company's financial results for Q2 2025, released on August 6, likely revealed challenges. A cautious outlook and potential margin pressures may have overshadowed positive developments. With no share buyback announcements, investors may be concerned about growth prospects. According to a recent analysis, the company's solid profits have weak fundamentals, which may have raised some red flags.

1.c. Company Highlights

Last Price	27.97
Change Percentage	0.14%
Open	27.95
Previous Close	27.93
Market Cap ( Millions)	658
Volume	5128
Year High	41
Year Low	25.45
M A 50	28.3
M A 200	30.36

FCF Yield	21.42%
Dividend Yield	0.00%
ROE	7.12%
Debt / Equity	76.71%
Net Debt / EBIDTA	232.24%
Price To Book	1.32
Price Earnings Ratio	18.83
Price To FCF	4.67
Price To sales	0.26
EV / EBITDA	6.65

2. GDI Integrated Facility Services Delivers Mixed Q1 2025 Results Amidst Profitability Gains

GDI Integrated Facility Services Inc. reported its Q1 2025 results, showcasing a mixed financial performance with revenue declining 4% year-over-year to $616 million, driven by a 7% organic drop, partially offset by a 3% foreign currency tailwind. However, profitability improved significantly, with adjusted EBITDA surging 21% to $34 million, resulting in a 6% adjusted EBITDA margin, a 200 basis point improvement. The company also made progress on its balance sheet, reducing net operating working capital by $9 million and long-term debt by $14 million, bringing its leverage ratio to the mid-2x range, well within its 3x to 3.5x comfort zone. EPS came in at $0.26, beating consensus estimates of $0.19.

Publication Date: May -09

                                    📋 Highlights
                                    Revenue Decline:
                                                Revenue decreased 4% to $616 million, primarily due to a 7% organic decline offset by a 3% foreign currency translation increase.
Adjusted EBITDA Growth:
                                                Adjusted EBITDA rose 21% year-over-year to $34 million, with a 6% margin, a 2% improvement.
Debt Reduction:
                                                Net operating working capital reduced by $9 million and long-term debt by $14 million, lowering leverage to mid-two's.
Segment Performance:
                                                Business Services Canada remained stable, while Technical Services improved margins to 5%, up 3% year-over-year.
Profitability Outlook:
                                                Management expects organic growth to return to historic levels by Q4 2025, supported by strong margins and cost improvements.

                                

Segment Performance Highlights Divergence

The Business Services Canada segment remained stable, generating $147 million in revenue and $11 million in adjusted EBITDA, maintaining a 7% margin. In contrast, Business Services USA faced challenges, with revenue declining 4% to $217 million, impacted by the loss of its largest client and lower-margin contracts from the Italian acquisition. Despite this, adjusted EBITDA margin improved 100 basis points to 7%, reflecting cost controls. The Technical Services segment was a bright spot, with revenue of $246 million and adjusted EBITDA of $12 million, delivering a 5% margin, up 300 basis points year-over-year, driven by higher project margins and cost efficiencies. Corporate and Other revenue fell to $6 million, primarily due to the sale of the superior distribution and retail business.

Management Strikes Optimistic Tone on Profitability and Growth

CEO Claude Bigras expressed satisfaction with the results, emphasizing that all segments delivered adjusted EBITDA growth. He highlighted stable performance in Business Services Canada, progress in profitability improvements in Business Services USA, and strong margins in Technical Services. GDI’s debt reduction and working capital efficiency have positioned it well for M&A opportunities while maintaining financial discipline. Management expects organic growth to return to historic levels by Q4 2025, supported by a healthy backlog and improved margins in Technical Services.

Valuation Metrics Reflect Strong Financial Health

With a P/E ratio of 24.03 and a P/B ratio of 1.55, GDI’s valuation reflects its strong profitability and balance sheet improvements. The EV/EBITDA ratio of 7.47 indicates that the market is pricing in the company’s debt reduction efforts and margin expansion. The free cash flow yield of 13.09% further underscores its ability to generate cash and reinvest in growth opportunities. While the stock may appear rich on an absolute basis, its improving fundamentals and disciplined approach to capital allocation justify its current multiples.

Q&A Session Reveals Operational and Strategic Clarity

Analysts have taken note of GDI’s progress, with consensus revenue growth estimates for next year standing at 3.4%. While challenges remain, particularly in Business Services USA, the company’s ability to deliver margin expansion and debt reduction positions it well for long-term value creation.

3. NewsRoom

Global's Top Undervalued Small Caps With Insider Buys In November 2025

Nov -19

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GDI Integrated Facility Services Inc (GDIFF) Q3 2025 Earnings Call Highlights: Navigating ...

Nov -14

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Nov -12

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GDI Integrated Facility Services Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Nov -09

Source:

GDI Integrated Facility Services Inc.'s (TSE:GDI) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?

Nov -07

Source:

GDI Integrated Facility Services Inc. Releases its Financial Results for the Third Quarter Ended September 30, 2025

Nov -05

Source:

Undervalued Small Caps With Insider Actions In Global For October 2025

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Global Undervalued Small Caps With Insider Action October 2025

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.08%)

6. Segments

Technical Services

Expected Growth: 1.2%

GDI Integrated Facility Services Inc.'s Technical Services segment growth of 1.2% is driven by increasing demand for energy-efficient solutions, rising adoption of IoT and automation in facilities management, and growing need for specialized technical expertise in maintenance and repair services.

Business Services USA

Expected Growth: 1.1%

GDI Integrated Facility Services Inc.'s Business Services USA segment growth of 1.1% is driven by increasing demand for outsourced facility services, cost savings initiatives, and strategic acquisitions. Additionally, the segment benefits from a strong presence in the US market, a diversified client base, and a focus on operational efficiency.

Business Services Canada

Expected Growth: 0.9%

GDI Integrated Facility Services Inc.'s Business Services in Canada, with 0.9 growth, is driven by increasing demand for outsourced facility management, cost savings initiatives, and a growing trend towards bundled services. Additionally, the company's focus on energy-efficient solutions and investments in technology also contribute to its growth.

Corporate and Other

Expected Growth: 0.8%

GDI Integrated Facility Services Inc.'s Corporate and Other segment growth of 0.8 is driven by increasing demand for facility management services, cost savings initiatives, and strategic acquisitions. Additionally, the company's focus on energy-efficient solutions and sustainability efforts contribute to its growth. Effective cost management and operational efficiencies also support the segment's growth.

7. Detailed Products

Janitorial Services

GDI Integrated Facility Services Inc. provides janitorial services to maintain cleanliness and hygiene in facilities, including offices, schools, hospitals, and other commercial spaces.

Facility Maintenance

GDI Integrated Facility Services Inc. offers facility maintenance services to ensure the upkeep and repair of facilities, including plumbing, electrical, and HVAC systems.

Landscaping and Groundskeeping

GDI Integrated Facility Services Inc. provides landscaping and groundskeeping services to maintain the exterior of facilities, including lawn care, pruning, and snow removal.

Waste Management

GDI Integrated Facility Services Inc. offers waste management services to collect, recycle, and dispose of waste in an environmentally responsible manner.

Specialized Services

GDI Integrated Facility Services Inc. provides specialized services, including window cleaning, carpet cleaning, and floor care, to maintain the appearance and cleanliness of facilities.

8. GDI Integrated Facility Services Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for GDI Integrated Facility Services Inc. is medium due to the presence of alternative facility services providers in the market.

Bargaining Power Of Customers

The bargaining power of customers for GDI Integrated Facility Services Inc. is low due to the company's strong brand reputation and long-term contracts with clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers for GDI Integrated Facility Services Inc. is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants for GDI Integrated Facility Services Inc. is low due to the high barriers to entry in the facility services industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry for GDI Integrated Facility Services Inc. is high due to the presence of several established players in the market, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	45.25%
Debt Cost	8.96%
Equity Weight	54.75%
Equity Cost	8.96%
WACC	8.96%
Leverage	82.64%

11. Quality Control: GDI Integrated Facility Services Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Viad

A-Score: 5.3/10

Value: 9.0

Growth: 4.9

Quality: 6.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

Kodak

A-Score: 4.5/10

Value: 7.2

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

GDI

A-Score: 4.4/10

Value: 7.6

Growth: 6.2

Quality: 4.2

Yield: 0.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

DLH

A-Score: 3.8/10

Value: 8.0

Growth: 5.8

Quality: 3.9

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

Odyssey Marine Exploration

A-Score: 3.8/10

Value: 6.0

Growth: 5.2

Quality: 6.1

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

Spire Global

A-Score: 3.7/10

Value: 6.6

Growth: 4.6

Quality: 3.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.83%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.96%

GDI Integrated Facility Services Inc. - CA3615692058

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GDI

1.c. Company Highlights

Less Volatile

Stable Momentum

Average Quality

Earnings Miss

Lower Quality

Weak Momentum

Revenues Miss

Higher Growth

Earnings Beats

Average Yield

Medium Volatility

Fairly Valued

Cheaper

2. GDI Integrated Facility Services Delivers Mixed Q1 2025 Results Amidst Profitability Gains

Segment Performance Highlights Divergence

Management Strikes Optimistic Tone on Profitability and Growth

Valuation Metrics Reflect Strong Financial Health

Q&A Session Reveals Operational and Strategic Clarity

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.08%)

6. Segments

Technical Services

Expected Growth: 1.2%

Business Services USA

Expected Growth: 1.1%

Business Services Canada

Expected Growth: 0.9%

Corporate and Other

Expected Growth: 0.8%

7. Detailed Products

Janitorial Services

Facility Maintenance

Landscaping and Groundskeeping

Waste Management

Specialized Services

8. GDI Integrated Facility Services Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: GDI Integrated Facility Services Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.97$

Current Price

27.97$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA