GDI Integrated Facility Services Inc. (TSX:GDI) shares have surged 54% since Capital Ideas wrote about the company 18 months ago
Capital Ideas Media | February 11, 2022 | SmallCapPower: We first featured GDI Integrated Facility Services Inc. (TSX:GDI) back in October 2017, when its stock price was $15.26 (it has soared about 280% since). Today, we still think new shareholders of Canada’s largest janitorial services company have a chance to ‘clean up’ on their investment.
(Originally published on Capital Ideas Media on August 18, 2020)
[Editor’s Note: Shares of GDI have surged 54% since Capital Ideas wrote about the company 18 months ago.]
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GDI provides services such as commercial janitorial and building maintenance, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation systems, as well as other complementary services such as janitorial products manufacturing and distribution in Canada and the United States.
Since the COVID-19 outbreak began in North America, the Company has ramped up its high-touch cleaning and decontamination services. As well, demand for its Food Plant Sanitation Services and Healthcare Cleaning Services should continue to grow in a post COVID-19 world.
At the time, Industrial Alliance Securities analyst Neil Linsdell had a “Strong Buy” rating on the stock, citing the expectation for increased demand for cleaning services in the “foreseeable” future as well as the Company’s dominant position in the industry.
Even though GDI completed seven acquisitions in 2019, the Industrial Alliance Securities analyst sees its “active” M&A strategy complimenting organic growth.
[UPDATE: Shares of GDI have gained about 8% year to date in 2022 when most other stocks have suffered a correction. During its most recently reported quarter (Q3 2021), the Company saw its revenue rise 12% year over year to $408.4 million]
GDI has managed to grow with little dilution to existing shareholders, as the Company has about 23 million shares outstanding. And, at the time, CEO Claude Bigras had a 13.8% equity stake in GDI.
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