(GDL) Goodfellow - Ratings and Ratios

Goodfellow Inc. (TO:GDL) is a leading wholesale distributor of building materials and floor coverings, operating across Canada, the United States, and the United Kingdom. The company specializes in a diverse range of products, including decking materials such as composite, wood, and framing products, as well as flooring solutions like engineered hardwood, laminate, and vinyl flooring. Its insulation and soundproofing offerings cater to both residential and commercial markets, addressing modern energy efficiency standards. Additionally, Goodfellow provides a wide array of lumber products, including cedar, engineered wood, and treated wood, along with panel products like plywood and medium-density fiberboard (MDF). The company also distributes roofing shingles, siding materials, and ceiling products, further enhancing its comprehensive portfolio.

Goodfellow Inc. serves a broad customer base, including lumberyard retailers, manufacturers, and floor covering specialists. Its services extend beyond distribution, offering custom timber fabrication, millwork, and carpentry solutions. The company also provides logistics support, such as delivery, container loading, and export preparation. With a strong focus on remanufacturing and distribution of lumber and wood products, Goodfellow has established itself as a key player in the forest products industry. Founded in 1898 and headquartered in Delson, Canada, the company has a long-standing reputation for reliability and quality in the building materials sector.

From a technical perspective, GDL is currently trading below its 20-day, 50-day, and 200-day moving averages, signaling bearish momentum. The stocks average true range (ATR) of 0.30 indicates relatively low volatility, while its last price of 11.80 reflects a recent decline below the 12.19 SMA 20 level. On the fundamental side, Goodfellow Inc. boasts a market cap of 102.05M CAD, with a price-to-earnings (P/E) ratio of 7.66, suggesting undervaluation relative to its earnings. The price-to-book (P/B) ratio of 0.49 further supports this assessment, while the return on equity (RoE) of 6.48% indicates moderate profitability.

3-Month Forecast:

Technical Data Outlook: GDL is expected to face continued downward pressure as it remains below its key moving averages. Support levels near 11.50 may be tested, with potential resistance at 12.50. A breakout above the 50-day SMA could signal a reversal, but momentum will likely remain subdued in the near term.

Fundamental Data Outlook: The companys low P/E and P/B ratios suggest undervaluation, potentially attracting value investors. However, the lack of a forward P/E figure indicates uncertainty about future earnings growth. The moderate RoE and low P/S ratio of 0.20 highlight the need for operational efficiency improvements to drive shareholder value.

Combined Outlook: Over the next three months, GDL is likely to remain range-bound between 11.00 and 12.50. Any upward movement will depend on the companys ability to improve its revenue trajectory and demonstrate earnings growth. Investors should monitor the stocks ability to break above its 50-day SMA as a potential buy signal, while also watching for any updates on forward earnings guidance.