GFL Environmental (TSE:GFL) (NYSE:GFL), an environmental services company that offers non-hazardous solid waste management, infrastructure, soil remediation, and liquid waste management services, reported its Q4-2022 and full-year financial results today. GFL’s results beat revenue expectations but missed earnings-per-share (EPS) forecasts. The company also provided guidance for the full year.
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GFL’s revenue reached C$1.82 billion (26.5% year-over-year growth, 13.7% organic growth), which beat expectations of C$1.75 billion. Meanwhile, adjusted earnings per share from continuing operations came in negative, at -C$0.02, lower than estimates of $0.09.
Additionally, the company’s adjusted EBITDA margin was 24.1% (26.1% when adjusting further for the GFL Infrastructure divestiture) compared to 25.2% last year, but adjusted EBITDA grew 17% to C$439.8 million, nonetheless. GFL also reported adjusted free cash flow of C$221.1 million (17.2% growth year-over-year).
On a full-year basis, GFL’s revenue and adjusted EPS came in at C$6.76 billion (31.6% growth) and C$0.49 (compared to C$0.37 in 2021), respectively. Moreover, adjusted cash flows from operations and adjusted free cash flow were C$1.22 billion and C$691.3 million, respectively.
Moving on to the company’s guidance, for 2023, it expects revenue to be between C$7.55 billion and C$7.65 billion, implying about 12.4% year-over-year growth. Also, adjusted free cash flow is forecast to come in at around C$700 million, while adjusted EBITDA should range between C$2.0 billion to C$2.05 billion.
Is GFL Stock a Good Buy, According to Analysts?
According to analysts, GFL stock comes in as a Moderate Buy based on two Buys assigned in the past three months. The average GFL stock price target of C$49.25 implies 21.95% upside potential.
