GLOBAL INDUSTRIAL Co (GIC) stock analysis

P/E above its 5-year median

Global Industrial's P/E of 21.0 is above its own 5-year median of 17.6.

P/E above the industry

Global Industrial's P/E of 21.0 is above the Wholesale Trade-durable Goods median of 20.3.

EV/EBITDA above its 5-year median

Global Industrial's EV/EBITDA of 13.8 is above its 5-year median of 11.4.

P/B above the industry

Global Industrial's price-to-book of 5.24 is above the Wholesale Trade-durable Goods median of 2.15.

Trading above fair value

The share price of $47.15 is above our fair value estimate of $40.06.

Margin of safety under 20%

The price is 17.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -3.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 31.6% over the last twelve months, against a 5-year average of 2.0% a year.

Growing faster than the industry

Revenue grew 8.4% over the last twelve months; the Wholesale Trade-durable Goods median is 7.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 36.4% over the last twelve months, against 35.0% a year earlier.

Return on equity over 15%

Return on equity was 26.9% over the last twelve months and averaged 40.0% over five years.

Return on capital over 10%

Return on invested capital was 33.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Global Industrial's return on equity of 26.9% is above the Wholesale Trade-durable Goods median of 17.2%.

Earnings grew over 5 years

Net income grew 2.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.1% over the last twelve months, against a 5-year average of 6.4%.

Net margin above the industry

Global Industrial's net margin of 6.1% is above the Wholesale Trade-durable Goods median of 5.0%.

No debt

Global Industrial has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.24 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.48; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Global Industrial paid dividends worth 1.8% of the share price over the last twelve months.

Yield below Treasuries

The 1.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Global Industrial yields 1.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 48.0% of net income.

Covered by free cash flow

Dividends take 47.9% of free cash flow.