GMS INC (GMS)
US36251C1036 - Common Stock
GMS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
1. Profitability
1.1 Basic Checks
GMS had positive earnings in the past year.
In the past year GMS had a positive cash flow from operations.
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'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 better than 66.67% of its industry peers.
GMS has a Return On Invested Capital of 9.53%. This is in the better half of the industry: GMS outperforms 72.55% of its industry peers.
GMS had an Average Return On Invested Capital over the past 3 years of 12.80%. This is above the industry average of 9.29%.
| 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.
GMS's Profit Margin has improved in the last couple of years.
GMS's Operating Margin of 7.39% is in line compared to the rest of the industry. GMS outperforms 50.98% of its industry peers.
In the last couple of years the Operating Margin of GMS has grown nicely.
GMS has a Gross Margin of 32.06%. This is comparable to the rest of the industry: GMS outperforms 54.90% of its industry peers.
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.
GMS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GMS has been reduced compared to 5 years ago.
Compared to 1 year ago, GMS has a worse 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.
Looking at the Altman-Z score, with a value of 3.45, GMS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of GMS is 3.93, which is a good value as it means it would take GMS, 3.93 years of fcf income to pay off all of its debts.
GMS has a Debt to FCF ratio of 3.93. This is in the better half of the industry: GMS outperforms 62.75% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that GMS is somewhat dependend on debt financing.
GMS has a worse Debt to Equity ratio (0.90) than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.85
WACC11.15%
2.3 Liquidity
GMS has a Current Ratio of 2.31. This indicates that GMS is financially healthy and has no problem in meeting its short term obligations.
GMS has a Current ratio of 2.31. This is comparable to the rest of the industry: GMS outperforms 54.90% 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's Quick ratio of 1.45 is in line compared to the rest of the industry. GMS outperforms 50.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
GMS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.19%.
The Earnings Per Share has been growing by 24.06% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.00% 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)-15.19%
EPS 3Y32.47%
EPS 5Y24.06%
EPS Q2Q%-19.58%
Revenue 1Y (TTM)3%
Revenue growth 3Y18.59%
Revenue growth 5Y12.04%
Sales Q2Q%2.76%
3.2 Future
GMS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.38% yearly.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y-4.86%
EPS Next 2Y0.83%
EPS Next 3Y6.38%
EPS Next 5YN/A
Revenue Next Year3.44%
Revenue Next 2Y3.4%
Revenue Next 3Y4.35%
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
GMS is valuated correctly with a Price/Earnings ratio of 12.77.
Based on the Price/Earnings ratio, GMS is valued cheaper than 82.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of GMS to the average of the S&P500 Index (28.65), we can say GMS is valued rather cheaply.
GMS is valuated reasonably with a Price/Forward Earnings ratio of 11.84.
Based on the Price/Forward Earnings ratio, GMS is valued cheaper than 84.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. GMS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
72.55% of the companies in the same industry are more expensive than GMS, based on the Enterprise Value to EBITDA ratio.
82.35% of the companies in the same industry are more expensive than GMS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 9.45 |
4.3 Compensation for Growth
The decent profitability rating of GMS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y0.83%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
No dividends for GMS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GMS INC
NYSE:GMS (11/21/2024, 4:15:00 PM)
After market: 99.1 0 (0%)99.1
+0.8 (+0.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 16.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.39% | ||
| PM (TTM) | 4.45% | ||
| GM | 32.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.19%
EPS 3Y32.47%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3%
Revenue growth 3Y18.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y