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1. Company Snapshot

1.a. Company Description

Global Industrial Company, through its subsidiaries, operates as a value-added industrial distributor of industrial and maintenance, repair, and operation (MRO) products in North America.The company offers industrial and MRO products under Global, GlobalIndustrial.com, Nexel, Paramount, and Interion trademarks.It offers products, including storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, food service and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials.


The company offers its products to businesses; state, local, and private educational organizations; and government entities through relationship marketers, e-commerce sites, and catalogs.The company was formerly known as Systemax Inc.Global Industrial Company was founded in 1949 and is headquartered in Port Washington, New York.

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1.b. Last Insights on GIC

Global Industrial Company's recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $0.48 per share, falling short of the Zacks Consensus Estimate of $0.58 per share. Despite a 3.3% sales increase to $353.6 million, operating income rose 18.5% to $26.3 million. The company's gross margin expanded to 35.6%. However, investors' attention is drawn to its relatively high valuation. GIC's lawsuit against NIO, accusing the Chinese EV maker of inflating revenue, may also weigh on investor sentiment.

1.c. Company Highlights

2. Global Industrial's Q3 Earnings: A Strong Performance Amidst Tariff Environment

Global Industrial reported a revenue growth of 3.3% to $353.6 million in the third quarter, driven by its largest strategic accounts and Canadian operations, which saw a 12.3% improvement in local currency. The company's gross margin expanded 160 basis points to 35.6%, reflecting effective price capture and diminishing favorability of pre-tariff inventory. Operating income rose 18.5% to $26.3 million, resulting in an operating margin of 7.4%. Earnings per share (EPS) came in at $0.48, below estimates of $0.58. The company generated $22.6 million in operating cash flow, demonstrating its ability to convert earnings into cash.

Publication Date: Nov -17

📋 Highlights
  • Revenue Growth:: Third-quarter revenue rose 3.3% to $353.6 million, driven by large strategic accounts and Canadian operations (12.3% local currency growth).
  • Gross Margin Expansion:: Gross margin increased 160 bps to 35.6%, aided by price capture and reduced pre-tariff inventory benefits.
  • Operating Income Improvement:: Operating income jumped 18.5% to $26.3 million, with margin expanding to 7.4%.
  • Strong Cash Flow:: Generated $22.6 million in operating cash flow, reflecting improved profitability.
  • SG&A Increase:: SG&A rose 6% to $99.7 million, primarily from performance-linked variable compensation expenses.

Operational Highlights and Strategic Focus

The team at Global Industrial is focused on supplier diversification, price management, and strategic cost negotiations to navigate the challenging tariff environment. The company is repositioning itself to serve customers across specific industries and sectors, aiming to maintain a healthy inventory position and achieve price/cost neutrality. Growth has continued into October, with higher rates than the 3% reported for the quarter, indicating a positive momentum.

SG&A Expenses and Profitability

SG&A expenses increased 6% to $99.7 million, primarily due to variable compensation expenses related to performance. The year-over-year change in SG&A is driven by the timing of profit growth and its impact on variable compensation. As the company is on track with its plan and growing profit, the differential in SG&A is mainly due to how variable compensation and non-equity incentive compensation are earned and impacted by profit changes.

Valuation and Outlook

With a P/E Ratio of 15.24 and an EV/EBITDA of 10.93, the market is pricing in a certain level of growth and profitability for Global Industrial. Analysts estimate revenue growth at 3.7% for next year, indicating a continued positive trajectory. The company's Dividend Yield stands at 3.84%, providing a relatively attractive return for income investors. The company's focus on growth initiatives and strategic M&A opportunities is expected to drive future performance.

Return Metrics and Leverage

Global Industrial's ROIC stands at 15.78%, and ROE is 22.92%, indicating a strong ability to generate returns on capital and equity. The Net Debt/EBITDA ratio is 0.48, suggesting a manageable level of leverage. These metrics collectively point to a healthy financial position and a solid foundation for future growth.

3. NewsRoom

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Global Industrial Company $GIC Stake Cut by Creative Planning

Dec -02

Source: defenseworld.net

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Global Industrial Introduces Mobile Robot Stretch Wrap Machine to Increase Efficiency, Safety and Value in Pallet Wrapping Operations

Nov -17

Source: accessnewswire.com

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Global Industrial Company to Participate in Upcoming Investor Conferences

Nov -06

Source: accessnewswire.com

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Why Global Industrial Stock Is Plummeting Today

Oct -29

Source: fool.com

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Global Industrial (GIC) Misses Q3 Earnings and Revenue Estimates

Oct -28

Source: zacks.com

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Global Industrial Company (GIC) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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Global Industrial Company Reports Third Quarter 2025 Financial Results

Oct -28

Source: accessnewswire.com

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Global Industrial Company to Report Third Quarter 2025 Results on October 28, 2025

Oct -20

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Brand Name and Private Label Industrial and Business Equipment and Supplies

Expected Growth: 4.0%

Strong brand recognition and customer loyalty drive growth in Global Industrial's private label business. Increasing demand for industrial equipment and supplies, particularly in e-commerce and manufacturing sectors, also contributes to growth. Additionally, the company's strategic expansion into new markets and product categories, as well as its focus on operational efficiency and cost savings, support the 4.0% growth rate.

7. Detailed Products

Material Handling Equipment

Global Industrial Company offers a wide range of material handling equipment, including forklifts, pallet jacks, and conveyor systems, designed to improve warehouse efficiency and productivity.

Packaging and Shipping Supplies

The company provides a variety of packaging and shipping supplies, such as boxes, tape, bubble wrap, and more, to help businesses safely and efficiently package and ship their products.

Janitorial and Sanitation Supplies

Global Industrial Company offers a range of janitorial and sanitation supplies, including cleaning solutions, paper products, and trash bags, to help maintain a clean and healthy work environment.

Furniture and Decor

The company provides a selection of furniture and decor items, including office chairs, desks, and decorative accessories, to enhance the aesthetic and functionality of workspaces.

Safety and Security Equipment

Global Industrial Company offers a range of safety and security equipment, including hard hats, gloves, and surveillance cameras, to help protect employees and assets.

Tools and Equipment

The company provides a variety of tools and equipment, including power tools, hand tools, and machinery, to help businesses complete tasks efficiently and effectively.

8. Global Industrial Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of a large number of customers and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry and the company's established brand reputation.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors and the company's need to differentiate itself in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.23%
Debt Cost 3.95%
Equity Weight 72.77%
Equity Cost 8.67%
WACC 7.39%
Leverage 37.42%

11. Quality Control: Global Industrial Company passed 7 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

Stock-Card
Russel Metals

A-Score: 6.6/10

Value: 6.9

Growth: 5.0

Quality: 5.2

Yield: 8.0

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Global Industrial

A-Score: 5.5/10

Value: 4.0

Growth: 4.9

Quality: 6.9

Yield: 7.0

Momentum: 6.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
DXP Enterprises

A-Score: 4.9/10

Value: 3.7

Growth: 7.1

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
EVI Industries

A-Score: 4.4/10

Value: 4.7

Growth: 7.0

Quality: 6.8

Yield: 1.0

Momentum: 4.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Titan Machinery

A-Score: 4.4/10

Value: 7.8

Growth: 4.4

Quality: 2.8

Yield: 0.0

Momentum: 6.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Transcat

A-Score: 3.1/10

Value: 2.7

Growth: 6.2

Quality: 5.3

Yield: 0.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

28.12$

Current Price

28.12$

Potential

-0.00%

Expected Cash-Flows