Should you consider GMS INC (NYSE:GMS) for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if GMS INC (NYSE:GMS) is suited for quality investing. Investors should of couse do their own research, but we spotted GMS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:GMS highlighted

• Over the past 5 years, GMS INC has experienced impressive revenue growth, with 16.24% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of GMS INC stands at 29.12%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of GMS INC stands at 2.82, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• GMS INC exhibits impressive Profit Quality (5-year) with a 359.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• With a robust 5-year EBIT growth of 33.49%, GMS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• GMS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NYSE:GMS?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, GMS scores 6 out of 10 in our fundamental rating. GMS was compared to 52 industry peers in the Trading Companies & Distributors industry. GMS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GMS is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, GMS could be worth investigating further for value and quality investing!.

Our latest full fundamental report of GMS contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.