GMS INC (GMS) Stock Fundamental Analysis
NYSE:GMS - New York Stock Exchange, Inc. - US36251C1036 - Common Stock - Currency: USD
GMS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. GMS has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on GMS. With these ratings, GMS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year GMS was profitable.
GMS had a positive operating cash flow in the past year.
GMS had positive earnings in each of the past 5 years.
GMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GMS has a Return On Assets of 5.45%. This is in the better half of the industry: GMS outperforms 63.83% of its industry peers.
The Return On Equity of GMS (14.91%) is comparable to the rest of the industry.
GMS has a Return On Invested Capital of 8.59%. This is comparable to the rest of the industry: GMS outperforms 51.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GMS is above the industry average of 9.88%.
The 3 year average ROIC (12.80%) for GMS is well above the current ROIC(8.59%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 14.91% | ||
| ROIC | 8.59% |
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
Looking at the Profit Margin, with a value of 3.92%, GMS is in line with its industry, outperforming 44.68% of the companies in the same industry.
In the last couple of years the Profit Margin of GMS has grown nicely.
GMS's Operating Margin of 6.79% is in line compared to the rest of the industry. GMS outperforms 44.68% of its industry peers.
GMS's Operating Margin has improved in the last couple of years.
The Gross Margin of GMS (31.81%) is comparable to the rest of the industry.
GMS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.79% | ||
| PM (TTM) | 3.92% | ||
| GM | 31.81% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GMS is creating some value.
The number of shares outstanding for GMS has been reduced compared to 1 year ago.
GMS has less shares outstanding than it did 5 years ago.
GMS has a worse debt/assets ratio than last year.
2.2 Solvency
GMS has an Altman-Z score of 3.13. This indicates that GMS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GMS (3.13) is better than 61.70% of its industry peers.
The Debt to FCF ratio of GMS is 4.23, which is a neutral value as it means it would take GMS, 4.23 years of fcf income to pay off all of its debts.
GMS has a Debt to FCF ratio of 4.23. This is in the better half of the industry: GMS outperforms 63.83% of its industry peers.
GMS has a Debt/Equity ratio of 0.97. This is a neutral value indicating GMS is somewhat dependend on debt financing.
GMS has a Debt to Equity ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.83
WACC10.4%
2.3 Liquidity
GMS has a Current Ratio of 2.23. This indicates that GMS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GMS (2.23) is better than 61.70% of its industry peers.
A Quick Ratio of 1.44 indicates that GMS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.44, GMS is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.44 |
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.
The Revenue has been growing slightly by 4.12% in the past 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)4.12%
Revenue growth 3Y18.59%
Revenue growth 5Y12.04%
Sales Q2Q%3.51%
3.2 Future
GMS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.40% yearly.
Based on estimates for the next years, GMS will show a small growth in Revenue. The Revenue will grow by 3.30% on average per year.
EPS Next Y-11.35%
EPS Next 2Y-0.26%
EPS Next 3Y5.4%
EPS Next 5YN/A
Revenue Next Year2.68%
Revenue Next 2Y2.78%
Revenue Next 3Y3.3%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.45, the valuation of GMS can be described as reasonable.
GMS's Price/Earnings ratio is rather cheap when compared to the industry. GMS is cheaper than 87.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of GMS to the average of the S&P500 Index (29.62), we can say GMS is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.55, the valuation of GMS can be described as very reasonable.
91.49% of the companies in the same industry are more expensive than GMS, based on the Price/Forward Earnings ratio.
GMS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GMS is valued a bit cheaper than 72.34% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GMS indicates a rather cheap valuation: GMS is cheaper than 89.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.66 | ||
| EV/EBITDA | 8.39 |
4.3 Compensation for Growth
GMS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-0.26%
EPS Next 3Y5.4%
5. Dividend
5.1 Amount
GMS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.17
-3.35 (-4.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners107.31%
Inst Owner Change-95.36%
Ins Owners0.56%
Ins Owner Change-0.07%
Market Cap3.03B
Analysts75
Price Target100.19 (28.17%)
Short Float %3.41%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)-9.76%
Min EPS beat(2)-10.71%
Max EPS beat(2)-8.82%
EPS beat(4)0
Avg EPS beat(4)-6.84%
Min EPS beat(4)-10.71%
Max EPS beat(4)-1.11%
EPS beat(8)2
Avg EPS beat(8)-2.22%
EPS beat(12)5
Avg EPS beat(12)1.38%
EPS beat(16)9
Avg EPS beat(16)7.39%
Revenue beat(2)0
Avg Revenue beat(2)-2%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)-0.56%
Revenue beat(8)4
Avg Revenue beat(8)-0.06%
Revenue beat(12)7
Avg Revenue beat(12)0.46%
Revenue beat(16)11
Avg Revenue beat(16)1.78%
PT rev (1m)-1.89%
PT rev (3m)5.62%
EPS NQ rev (1m)-13.47%
EPS NQ rev (3m)-19.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.82%
Revenue NQ rev (1m)-1.95%
Revenue NQ rev (3m)-4.95%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 9.55 | ||
| P/S | 0.54 | ||
| P/FCF | 8.66 | ||
| P/OCF | 7.56 | ||
| P/B | 2.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.39 |
EPS(TTM)7.48
EY9.57%
EPS(NY)8.19
Fwd EY10.47%
FCF(TTM)9.03
FCFY11.55%
OCF(TTM)10.33
OCFY13.22%
SpS144.01
BVpS37.85
TBVpS-0.76
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 14.91% | ||
| ROCE | 11.59% | ||
| ROIC | 8.59% | ||
| ROICexc | 8.81% | ||
| ROICexgc | 16.63% | ||
| OM | 6.79% | ||
| PM (TTM) | 3.92% | ||
| GM | 31.81% | ||
| FCFM | 6.27% |
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 Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 4.23 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 34.17% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 4.66 | ||
| Cash Conversion | 75.97% | ||
| Profit Quality | 159.95% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 3.13 |
F-Score4
WACC10.4%
ROIC/WACC0.83
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-11.35%
EPS Next 2Y-0.26%
EPS Next 3Y5.4%
EPS Next 5YN/A
Revenue 1Y (TTM)4.12%
Revenue growth 3Y18.59%
Revenue growth 5Y12.04%
Sales Q2Q%3.51%
Revenue Next Year2.68%
Revenue Next 2Y2.78%
Revenue Next 3Y3.3%
Revenue Next 5YN/A
EBIT growth 1Y-19.9%
EBIT growth 3Y32.38%
EBIT growth 5Y23.81%
EBIT Next Year18.32%
EBIT Next 3Y12.06%
EBIT Next 5YN/A
FCF growth 1Y11.99%
FCF growth 3Y44.97%
FCF growth 5Y16.55%
OCF growth 1Y11.56%
OCF growth 3Y41.38%
OCF growth 5Y17.48%