Why the quality investor may take a look at GMS INC (NYSE:GMS).

In this article we will dive into GMS INC (NYSE:GMS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed GMS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:GMS.

• Over the past 5 years, GMS INC has experienced impressive revenue growth, with 12.04% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 17.98%, GMS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• GMS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.93, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• GMS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 323.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• GMS INC has consistently achieved strong EBIT growth over the past 5 years, with a 23.81% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• GMS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, GMS scores 5 out of 10 in our fundamental rating. GMS was compared to 51 industry peers in the Trading Companies & Distributors industry. GMS has only an average score on both its financial health and profitability. GMS has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of GMS for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

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.