GFL Environmental Inc T.GFL

Alternate Symbol(s): GFL

GFL Environmental Inc. is a Canada-based diversified environmental services company. The Company is engaged in providing non-hazardous solid waste management, infrastructure and soil remediation services and liquid waste management services. Its segments include Solid waste, which includes landfill, material recovery facilities, and Environmental Services, which includes liquid waste management and soil remediation services. Its service range includes residential waste collection, commercial waste collection, industrial cleaning services, dumpster rental services, liquid and hazardous waste and soil remediation services. It offers commercial, institutional, and industrial customers a range of environmentally hazardous waste handling services from onsite packaging, container supply, and transportation, to licensed disposal or recycling. It owns, operates, and manages solid and liquid waste disposal, transfer and recycling facilities across North America.

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GFL Environmental Inc

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Post by retiredcfon Apr 02, 2024 9:24am

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Post# 35964740

RBC

April 2, 2024

GFL Environmental Inc.
S&P upgrades company to BB- from B+

NYSE: GFL | USD 34.57 | Outperform | Price Target USD 43.00

Sentiment: Positive

Our view. We are taking a positive view on the recent upgrade by S&P, which highlights GFL's commitment to deleveraging and sustainable FCF generation. Leverage declined from 5x in 2022 to 4.1x in 2023, with management targeting 3.65x to 3.85x by 2024, including a $900MM spending cap on growth opportunities and M&A. Overall we are encouraged by the upgrade and see the company reaching an investment grade rating as they continue to execute on debt reduction and tempered growth spending within their guardrails.

What happened? S&P yesterday upgraded GFL to BB- from B+ with a positive outlook on improving credit metrics driven by strong EBITDA growth from acquisitions, higher pricing and improved profitability, all coupled with stable debt levels.