GFL Environmental Inc. Stock Sees 176% Five-Year Gain Despite Recent 4.1% Pullback

GFL Environmental's stock price has risen 176% over the last five years but dropped 4.1% recently. The company's revenue has grown 14% annually, and its share price has gained 23% per year. Analysts predict steady growth, and the company's TSR is expected to be higher due to dividends.

GFL Environmental Inc. (TSE: GFL) has seen its stock price rise significantly over the past five years, with a 176% increase from its 2020 level. However, the stock recently experienced a drop of 4.1%. The company's revenue has grown at an annual rate of 14%, and its share price has gained 23% per year over the same period [1].

Analysts predict steady growth for GFL Environmental, with the company's total shareholder return (TSR) expected to be higher due to dividends. The TSR incorporates the value of dividends, which have been reinvested, providing investors with additional returns. Over the last five years, GFL Environmental's TSR has been 191%, which exceeds the share price return [1].

GFL Environmental's revenue growth has been a key driver of its stock performance. The company's revenue has increased at a compound annual growth rate (CAGR) of 14% over the past five years. This growth is reflected in the company's share price, which has appreciated by 24% per year on average over the same period [1].

The company's recent recapitalization deal with Energy Capital Partners for its construction subsidiary, Green Infrastructure Partners (GIP), is a strategic move that provides GFL with immediate liquidity and strengthens its financial position. The deal allows GFL to focus on its core environmental services and recycling businesses [2].

GFL Environmental's strong performance in the waste management and recycling sector has attracted significant investment from various institutional investors. The company's consistent performance, with an annualized return of 23.0% over the past five years, has been a key factor in its success [2].

In conclusion, GFL Environmental's stock performance has been driven by its strong revenue growth and share price appreciation. The company's TSR has been higher due to dividends, and its recent recapitalization deal signals a focus on its core businesses. As the company continues to expand its operations and service offerings, investors should closely monitor its progress and future developments.

References:
[1] https://simplywall.st/stocks/ca/commercial-services/tsx-gfl/gfl-environmental-shares/news/those-who-invested-in-gfl-environmental-tsegfl-five-years-ag
[2] https://www.ainvest.com/news/gfl-environmental-recapitalizes-gip-boosts-stake-30-1-2508/