Review of GDI Integrated Facility Services

OCT 24, 2024 - GDI is one of the largest outsourced facility service providers in North America. A weak acquisition pipeline along with organic revenue decline led to weakening sales growth over the last few quarters. This meaningful slowdown in topline growth caused investors concern, as most of the value creation came from the compounding growth in earnings, and whether GDI could resume its growth playbook over the next few years is still highly uncertain. We are downgrading our rating by one notch to “B”.