GFL

GFL Environmental Inc.

Industrial/Transportation


Presented:04/08/2020
Price:$13.72
Cap:$4.14B
Current Price:$40.81
Cap:$15.37B

Presented

Date04/08/2020
Price$13.72
Market Cap$4.14B
Ent Value$9.47B
P/E RatioN/A
Book Value$6.80
Div Yield0%
Shares O/S302.10M
Ave Daily Vol2,559,181
Short Int5.00%

Current

Price$40.81
Market Cap$15.37B
GFL Environmental, Inc. engages in the provision of ecological solutions. It operates through the following segments: Solid Waste; Infrastructure and Soil Remediation; Liquid Waste; and Corporate. The Solid Waste segment includes hauling, landfill, transfers, and material recovery facilities. The Infrastructure and Soil Remediation provides remediation of contaminated soils as well as complementary services, including civil, demolition, excavation, and shoring services. The Liquid Waste segment collects, transports, processes, recycles, and disposes liquid wastes from commercial and industrial customers. The company was founded by Patrick Dovigi in 2007 and is headquartered in Vaughan, Canada.

Publicly traded companies mentioned herein: GFL Environmental Inc (GFL), Waste Connections Inc (WCN), Waste Management Inc (WM), Republic Services Inc (RSG)

Highlights

The presenter is long shares of GFL Environmental Inc (GFL), the Canadian waste management company that has traded down from its $19 per share IPO on March 2nd to the current ~$14 per share. Despite GFL’s position as the fourth largest waste management operator in North America, the company trades at a meaningful discount to peers. It is currently priced at a MSD – HSD multiple on his 2022 EBITDA estimate while WM, WCN, and RSG trade at LDD – MDD valuations. Given the current environment, the presenter considers GFL’s business mix more attractive than those of its comps, which should help GFL remain more resilient over the medium term and help to close the margin gap. In this scenario, he anticipates share appreciation to $25 based on the multiple rerating closer to peers at 12x his 2022 EBITDA estimate. 

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Idea Discussion

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