GMS INC (GMS)
US36251C1036 - Common Stock
We assign a fundamental rating of 6 out of 10 to GMS. GMS was compared to 48 industry peers in the Trading Companies & Distributors industry. While GMS has a great health rating, its profitability is only average at the moment. GMS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make GMS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
GMS had positive earnings in the past year.
GMS had a positive operating cash flow in the past year.
In the past 5 years GMS has always been profitable.
In the past 5 years GMS always reported a positive cash flow from operatings.
1.2 Ratios
GMS's Return On Assets of 6.33% is fine compared to the rest of the industry. GMS outperforms 66.67% of its industry peers.
The Return On Equity of GMS (16.77%) is comparable to the rest of the industry.
GMS has a better Return On Invested Capital (9.53%) than 72.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GMS is above the industry average of 9.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 16.77% | ||
| ROIC | 9.53% |
ROA(3y)8.78%
ROA(5y)6.32%
ROE(3y)23.57%
ROE(5y)17.44%
ROIC(3y)12.8%
ROIC(5y)10.51%
1.3 Margins
GMS has a Profit Margin (4.45%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GMS has grown nicely.
GMS has a Operating Margin (7.39%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GMS has grown nicely.
With a Gross Margin value of 32.06%, GMS perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
In the last couple of years the Gross Margin of GMS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | 4.45% | ||
| GM | 32.06% |
OM growth 3Y11.62%
OM growth 5Y10.51%
PM growth 3Y16.16%
PM growth 5Y23.42%
GM growth 3Y0.05%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
GMS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GMS has been reduced compared to 1 year ago.
Compared to 5 years ago, GMS has less shares outstanding
GMS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.31 indicates that GMS is not in any danger for bankruptcy at the moment.
GMS has a Altman-Z score of 3.31. This is in the better half of the industry: GMS outperforms 62.50% of its industry peers.
GMS has a debt to FCF ratio of 3.93. This is a good value and a sign of high solvency as GMS would need 3.93 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.93, GMS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.90 indicates that GMS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, GMS is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 3.31 |
ROIC/WACC0.85
WACC11.2%
2.3 Liquidity
A Current Ratio of 2.31 indicates that GMS has no problem at all paying its short term obligations.
GMS has a Current ratio of 2.31. This is in the better half of the industry: GMS outperforms 60.42% of its industry peers.
GMS has a Quick Ratio of 1.45. This is a normal value and indicates that GMS is financially healthy and should not expect problems in meeting its short term obligations.
GMS has a better Quick ratio (1.45) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for GMS have decreased strongly by -13.63% in the last year.
Measured over the past years, GMS shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.06% on average per year.
Looking at the last year, GMS shows a small growth in Revenue. The Revenue has grown by 3.24% in the last year.
Measured over the past years, GMS shows a quite strong growth in Revenue. The Revenue has been growing by 12.04% on average per year.
EPS 1Y (TTM)-13.63%
EPS 3Y32.47%
EPS 5Y24.06%
EPS Q2Q%-12.17%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y18.59%
Revenue growth 5Y12.04%
Sales Q2Q%3.51%
3.2 Future
Based on estimates for the next years, GMS will show a small growth in Earnings Per Share. The EPS will grow by 5.27% on average per year.
GMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y-4.86%
EPS Next 2Y0.83%
EPS Next 3Y5.27%
EPS Next 5YN/A
Revenue Next Year3.44%
Revenue Next 2Y3.4%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.50 indicates a reasonable valuation of GMS.
Based on the Price/Earnings ratio, GMS is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GMS to the average of the S&P500 Index (27.73), we can say GMS is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.28, the valuation of GMS can be described as very reasonable.
85.42% of the companies in the same industry are more expensive than GMS, based on the Price/Forward Earnings ratio.
GMS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
72.92% of the companies in the same industry are more expensive than GMS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GMS is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
The decent profitability rating of GMS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y0.83%
EPS Next 3Y5.27%
5. Dividend
5.1 Amount
No dividends for GMS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GMS INC
NYSE:GMS (12/20/2024, 8:15:07 PM)
After market: 86.01 0 (0%)86.01
+0.57 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners105.52%
Inst Owner Change-1.97%
Ins Owners0.56%
Ins Owner Change2.26%
Market Cap3.34B
Analysts75
Price Target94.86 (10.29%)
Short Float %2.57%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.71%
Min EPS beat(2)-10.71%
Max EPS beat(2)-6.72%
EPS beat(4)1
Avg EPS beat(4)-4.41%
Min EPS beat(4)-10.71%
Max EPS beat(4)0.9%
EPS beat(8)3
Avg EPS beat(8)1.12%
EPS beat(12)6
Avg EPS beat(12)4.11%
EPS beat(16)10
Avg EPS beat(16)8.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.97%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-0.56%
Revenue beat(4)1
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)2.15%
Revenue beat(8)5
Avg Revenue beat(8)0.5%
Revenue beat(12)8
Avg Revenue beat(12)1.14%
Revenue beat(16)11
Avg Revenue beat(16)1.78%
PT rev (1m)0%
PT rev (3m)-0.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.6 | ||
| P/FCF | 9.51 | ||
| P/OCF | 8.27 | ||
| P/B | 2.27 | ||
| P/tB | 127.13 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)7.48
EY8.7%
EPS(NY)8.37
Fwd EY9.73%
FCF(TTM)9.04
FCFY10.51%
OCF(TTM)10.4
OCFY12.09%
SpS142.73
BVpS37.87
TBVpS0.68
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 16.77% | ||
| ROCE | 12.86% | ||
| ROIC | 9.53% | ||
| ROICexc | 9.69% | ||
| ROICexgc | 17.98% | ||
| OM | 7.39% | ||
| PM (TTM) | 4.45% | ||
| GM | 32.06% | ||
| FCFM | 6.33% |
ROA(3y)8.78%
ROA(5y)6.32%
ROE(3y)23.57%
ROE(5y)17.44%
ROIC(3y)12.8%
ROIC(5y)10.51%
ROICexc(3y)13.54%
ROICexc(5y)11.27%
ROICexgc(3y)25.92%
ROICexgc(5y)22.45%
ROCE(3y)17.27%
ROCE(5y)14.19%
ROICexcg growth 3Y9.04%
ROICexcg growth 5Y6.5%
ROICexc growth 3Y12.79%
ROICexc growth 5Y12.33%
OM growth 3Y11.62%
OM growth 5Y10.51%
PM growth 3Y16.16%
PM growth 5Y23.42%
GM growth 3Y0.05%
GM growth 5Y0.02%
F-Score4
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 3.93 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 37.82% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 5.41 | ||
| Cash Conversion | 73.55% | ||
| Profit Quality | 142.39% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.31 |
F-Score4
WACC11.2%
ROIC/WACC0.85
Cap/Depr(3y)39.64%
Cap/Depr(5y)33.65%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.92%
Profit Quality(3y)101.22%
Profit Quality(5y)322.65%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.63%
EPS 3Y32.47%
EPS 5Y24.06%
EPS Q2Q%-12.17%
EPS Next Y-4.86%
EPS Next 2Y0.83%
EPS Next 3Y5.27%
EPS Next 5YN/A
Revenue 1Y (TTM)3.24%
Revenue growth 3Y18.59%
Revenue growth 5Y12.04%
Sales Q2Q%3.51%
Revenue Next Year3.44%
Revenue Next 2Y3.4%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
EBIT growth 1Y-18.48%
EBIT growth 3Y32.38%
EBIT growth 5Y23.81%
EBIT Next Year27.75%
EBIT Next 3Y13.28%
EBIT Next 5YN/A
FCF growth 1Y71.13%
FCF growth 3Y44.97%
FCF growth 5Y16.55%
OCF growth 1Y61.29%
OCF growth 3Y41.38%
OCF growth 5Y17.48%