GMS INC (GMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GMS - US36251C1036 - Common Stock
109.96 USD
-0.01 (-0.01%)
109.97 USD
+0.01 (+0.01%)
Taking everything into account, GMS scores 5 out of 10 in our fundamental rating. GMS was compared to 50 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of GMS get a neutral evaluation. Nothing too spectacular is happening here. GMS has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years GMS had a positive operating cash flow.
1.2 Ratios
GMS's Return On Assets of 2.65% is in line compared to the rest of the industry. GMS outperforms 44.00% of its industry peers.
With a Return On Equity value of 7.01%, GMS perfoms like the industry average, outperforming 46.00% of the companies in the same industry.
GMS has a Return On Invested Capital of 6.19%. This is comparable to the rest of the industry: GMS outperforms 56.00% of its industry peers.
GMS had an Average Return On Invested Capital over the past 3 years of 10.30%. This is in line with the industry average of 9.63%.
The 3 year average ROIC (10.30%) for GMS is well above the current ROIC(6.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 7.01% | ||
| ROIC | 6.19% |
ROA(3y)6.85%
ROA(5y)6.72%
ROE(3y)17.72%
ROE(5y)18.34%
ROIC(3y)10.3%
ROIC(5y)10%
1.3 Margins
GMS has a Profit Margin (1.86%) which is in line with its industry peers.
In the last couple of years the Profit Margin of GMS has grown nicely.
GMS has a worse Operating Margin (5.03%) than 60.00% of its industry peers.
In the last couple of years the Operating Margin of GMS has remained more or less at the same level.
GMS has a Gross Margin (31.15%) which 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 | 5.03% | ||
| PM (TTM) | 1.86% | ||
| GM | 31.15% |
OM growth 3Y-16.26%
OM growth 5Y0.26%
PM growth 3Y-29.19%
PM growth 5Y23.84%
GM growth 3Y-0.92%
GM growth 5Y-0.98%
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.
Compared to 1 year ago, GMS has less shares outstanding
The number of shares outstanding for GMS has been reduced compared to 5 years ago.
Compared to 1 year ago, GMS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.45 indicates that GMS is not in any danger for bankruptcy at the moment.
GMS has a Altman-Z score of 3.45. This is comparable to the rest of the industry: GMS outperforms 56.00% of its industry peers.
The Debt to FCF ratio of GMS is 4.00, which is a good value as it means it would take GMS, 4.00 years of fcf income to pay off all of its debts.
GMS has a better Debt to FCF ratio (4.00) than 68.00% of its industry peers.
GMS has a Debt/Equity ratio of 0.87. This is a neutral value indicating GMS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, GMS is in line with its industry, outperforming 42.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.66
WACC9.43%
2.3 Liquidity
GMS has a Current Ratio of 2.11. This indicates that GMS is financially healthy and has no problem in meeting its short term obligations.
GMS's Current ratio of 2.11 is in line compared to the rest of the industry. GMS outperforms 56.00% of its industry peers.
A Quick Ratio of 1.31 indicates that GMS should not have too much problems paying its short term obligations.
GMS has a Quick ratio (1.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
GMS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.81%.
The Earnings Per Share has been growing by 15.71% on average over the past years. This is quite good.
The Revenue has decreased by -1.10% in the past year.
GMS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.21% yearly.
EPS 1Y (TTM)-22.81%
EPS 3Y-6.35%
EPS 5Y15.71%
EPS Q2Q%-8.81%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y5.96%
Revenue growth 5Y11.21%
Sales Q2Q%-2.36%
3.2 Future
GMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.83% yearly.
GMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.94% yearly.
EPS Next Y2.35%
EPS Next 2Y10.15%
EPS Next 3Y11.83%
EPS Next 5YN/A
Revenue Next Year-0.22%
Revenue Next 2Y2.35%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
GMS is valuated rather expensively with a Price/Earnings ratio of 18.36.
Compared to the rest of the industry, the Price/Earnings ratio of GMS indicates a somewhat cheap valuation: GMS is cheaper than 72.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, GMS is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.71, which indicates a correct valuation of GMS.
Based on the Price/Forward Earnings ratio, GMS is valued a bit cheaper than 72.00% of the companies in the same industry.
GMS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMS indicates a somewhat cheap valuation: GMS is cheaper than 62.00% of the companies listed 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 84.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.77 | ||
| EV/EBITDA | 12.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.82
PEG (5Y)1.17
EPS Next 2Y10.15%
EPS Next 3Y11.83%
5. Dividend
5.1 Amount
No dividends for GMS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
109.96
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners108.75%
Inst Owner Change-99.61%
Ins Owners0.62%
Ins Owner Change-18.99%
Market Cap4.20B
Revenue(TTM)5.48B
Net Income(TTM)101.78M
Analysts52
Price Target109.01 (-0.86%)
Short Float %N/A
Short RatioN/A
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)2
Avg EPS beat(2)7.89%
Min EPS beat(2)1.11%
Max EPS beat(2)14.68%
EPS beat(4)2
Avg EPS beat(4)-6.95%
Min EPS beat(4)-34.78%
Max EPS beat(4)14.68%
EPS beat(8)3
Avg EPS beat(8)-5.68%
EPS beat(12)5
Avg EPS beat(12)-1.57%
EPS beat(16)8
Avg EPS beat(16)1.34%
Revenue beat(2)2
Avg Revenue beat(2)1.1%
Min Revenue beat(2)0.38%
Max Revenue beat(2)1.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)1.82%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)7
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)0.74%
PT rev (1m)0%
PT rev (3m)28.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 14.71 | ||
| P/S | 0.77 | ||
| P/FCF | 12.77 | ||
| P/OCF | 11.18 | ||
| P/B | 2.89 | ||
| P/tB | 80.14 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)5.99
EY5.45%
EPS(NY)7.47
Fwd EY6.8%
FCF(TTM)8.61
FCFY7.83%
OCF(TTM)9.84
OCFY8.95%
SpS143.56
BVpS38.04
TBVpS1.37
PEG (NY)7.82
PEG (5Y)1.17
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 7.01% | ||
| ROCE | 8.84% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 11.5% | ||
| OM | 5.03% | ||
| PM (TTM) | 1.86% | ||
| GM | 31.15% | ||
| FCFM | 6% |
ROA(3y)6.85%
ROA(5y)6.72%
ROE(3y)17.72%
ROE(5y)18.34%
ROIC(3y)10.3%
ROIC(5y)10%
ROICexc(3y)10.86%
ROICexc(5y)10.57%
ROICexgc(3y)20.46%
ROICexgc(5y)20.55%
ROCE(3y)14.71%
ROCE(5y)14.28%
ROICexgc growth 3Y-19.55%
ROICexgc growth 5Y-4.38%
ROICexc growth 3Y-18.44%
ROICexc growth 5Y-1.06%
OM growth 3Y-16.26%
OM growth 5Y0.26%
PM growth 3Y-29.19%
PM growth 5Y23.84%
GM growth 3Y-0.92%
GM growth 5Y-0.98%
F-Score6
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 4 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 28.11% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 3.24 | ||
| Cash Conversion | 84.87% | ||
| Profit Quality | 322.86% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.45 |
F-Score6
WACC9.43%
ROIC/WACC0.66
Cap/Depr(3y)37.8%
Cap/Depr(5y)35.11%
Cap/Sales(3y)0.96%
Cap/Sales(5y)0.94%
Profit Quality(3y)181.36%
Profit Quality(5y)142.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.81%
EPS 3Y-6.35%
EPS 5Y15.71%
EPS Q2Q%-8.81%
EPS Next Y2.35%
EPS Next 2Y10.15%
EPS Next 3Y11.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y5.96%
Revenue growth 5Y11.21%
Sales Q2Q%-2.36%
Revenue Next Year-0.22%
Revenue Next 2Y2.35%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
EBIT growth 1Y-32.73%
EBIT growth 3Y-11.27%
EBIT growth 5Y11.5%
EBIT Next Year50.4%
EBIT Next 3Y20.72%
EBIT Next 5YN/A
FCF growth 1Y-17.31%
FCF growth 3Y34.38%
FCF growth 5Y3.88%
OCF growth 1Y-17.04%
OCF growth 3Y28.78%
OCF growth 5Y4.82%
GMS INC / GMS FAQ
What is the ChartMill fundamental rating of GMS INC (GMS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GMS.
What is the valuation status of GMS INC (GMS) stock?
ChartMill assigns a valuation rating of 5 / 10 to GMS INC (GMS). This can be considered as Fairly Valued.
How profitable is GMS INC (GMS) stock?
GMS INC (GMS) has a profitability rating of 5 / 10.
What is the valuation of GMS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GMS INC (GMS) is 18.36 and the Price/Book (PB) ratio is 2.89.
What is the financial health of GMS INC (GMS) stock?
The financial health rating of GMS INC (GMS) is 6 / 10.