GMS INC (GMS) Stock Fundamental Analysis
NYSE:GMS - New York Stock Exchange, Inc. - US36251C1036 - Common Stock - Currency: USD
Overall GMS gets a fundamental rating of 5 out of 10. We evaluated GMS against 48 industry peers in the Trading Companies & Distributors industry. GMS has an average financial health and profitability rating. GMS may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, GMS could be worth investigating further 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.
GMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GMS's Return On Assets of 3.84% is in line compared to the rest of the industry. GMS outperforms 50.00% of its industry peers.
With a Return On Equity value of 10.46%, GMS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
GMS has a Return On Invested Capital of 7.85%. This is in the better half of the industry: GMS outperforms 60.42% 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 9.25%.
The 3 year average ROIC (12.80%) for GMS is well above the current ROIC(7.85%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 10.46% | ||
| ROIC | 7.85% |
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
The Profit Margin of GMS (2.61%) is worse than 60.42% of its industry peers.
GMS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.96%, GMS is doing worse than 60.42% of the companies in the same industry.
GMS's Operating Margin has improved in the last couple of years.
GMS has a Gross Margin (31.41%) which is comparable to the rest of the 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 | 5.96% | ||
| PM (TTM) | 2.61% | ||
| GM | 31.41% |
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.
GMS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GMS has less shares outstanding
The debt/assets ratio for GMS is higher compared to a year ago.
2.2 Solvency
GMS has an Altman-Z score of 3.17. This indicates that GMS is financially healthy and has little risk of bankruptcy at the moment.
GMS has a Altman-Z score of 3.17. This is in the better half of the industry: GMS outperforms 60.42% of its industry peers.
The Debt to FCF ratio of GMS is 4.15, which is a neutral value as it means it would take GMS, 4.15 years of fcf income to pay off all of its debts.
GMS has a better Debt to FCF ratio (4.15) than 64.58% 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.
Looking at the Debt to Equity ratio, with a value of 0.97, GMS is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.83
WACC9.48%
2.3 Liquidity
GMS has a Current Ratio of 2.30. This indicates that GMS is financially healthy and has no problem in meeting its short term obligations.
GMS has a better Current ratio (2.30) than 60.42% of its industry peers.
GMS has a Quick Ratio of 1.38. 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 Quick ratio of 1.38. This is in the better half of the industry: GMS outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
GMS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.14%.
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 3.71% 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)-19.14%
EPS 3Y32.47%
EPS 5Y24.06%
EPS Q2Q%-42.5%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y18.59%
Revenue growth 5Y12.04%
Sales Q2Q%0.19%
3.2 Future
Based on estimates for the next years, GMS will show a decrease in Earnings Per Share. The EPS will decrease by -1.39% on average per year.
GMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.74% yearly.
EPS Next Y-26.52%
EPS Next 2Y-13.07%
EPS Next 3Y-1.39%
EPS Next 5YN/A
Revenue Next Year-0.07%
Revenue Next 2Y0.28%
Revenue Next 3Y1.74%
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 reasonably with a Price/Earnings ratio of 10.40.
Based on the Price/Earnings ratio, GMS is valued cheaper than 89.58% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. GMS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.37, the valuation of GMS can be described as reasonable.
Based on the Price/Forward Earnings ratio, GMS is valued cheaper than 81.25% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. GMS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 11.37 |
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 66.67% of the companies listed in the same industry.
91.67% 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 | 8 | ||
| EV/EBITDA | 8.27 |
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-13.07%
EPS Next 3Y-1.39%
5. Dividend
5.1 Amount
GMS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.69
+0.58 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners107.31%
Inst Owner Change0.09%
Ins Owners0.56%
Ins Owner Change0.95%
Market Cap2.71B
Analysts75
Price Target85 (20.24%)
Short Float %4.31%
Short Ratio3.98
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)-21.8%
Min EPS beat(2)-34.78%
Max EPS beat(2)-8.82%
EPS beat(4)0
Avg EPS beat(4)-15.26%
Min EPS beat(4)-34.78%
Max EPS beat(4)-6.72%
EPS beat(8)2
Avg EPS beat(8)-6.39%
EPS beat(12)5
Avg EPS beat(12)-1.45%
EPS beat(16)8
Avg EPS beat(16)4.14%
Revenue beat(2)0
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-3.47%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-0.56%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)6
Avg Revenue beat(12)0.05%
Revenue beat(16)10
Avg Revenue beat(16)1.43%
PT rev (1m)-15.16%
PT rev (3m)-16.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-45.51%
EPS NY rev (1m)-17.12%
EPS NY rev (3m)-17.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.61%
Revenue NY rev (1m)-2.68%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 11.37 | ||
| P/S | 0.49 | ||
| P/FCF | 8 | ||
| P/OCF | 6.94 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.27 |
EPS(TTM)6.8
EY9.62%
EPS(NY)6.22
Fwd EY8.8%
FCF(TTM)8.84
FCFY12.51%
OCF(TTM)10.19
OCFY14.41%
SpS145.69
BVpS36.3
TBVpS-0.65
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 10.46% | ||
| ROCE | 10.59% | ||
| ROIC | 7.85% | ||
| ROICexc | 8% | ||
| ROICexgc | 14.8% | ||
| OM | 5.96% | ||
| PM (TTM) | 2.61% | ||
| GM | 31.41% | ||
| FCFM | 6.07% |
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 Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 4.15 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 32.64% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | 3.87 | ||
| Cash Conversion | 79.6% | ||
| Profit Quality | 232.86% | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.17 |
F-Score4
WACC9.48%
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)-19.14%
EPS 3Y32.47%
EPS 5Y24.06%
EPS Q2Q%-42.5%
EPS Next Y-26.52%
EPS Next 2Y-13.07%
EPS Next 3Y-1.39%
EPS Next 5YN/A
Revenue 1Y (TTM)3.71%
Revenue growth 3Y18.59%
Revenue growth 5Y12.04%
Sales Q2Q%0.19%
Revenue Next Year-0.07%
Revenue Next 2Y0.28%
Revenue Next 3Y1.74%
Revenue Next 5YN/A
EBIT growth 1Y-27.05%
EBIT growth 3Y32.38%
EBIT growth 5Y23.81%
EBIT Next Year5.91%
EBIT Next 3Y6.81%
EBIT Next 5YN/A
FCF growth 1Y-14.12%
FCF growth 3Y44.97%
FCF growth 5Y16.55%
OCF growth 1Y-10.4%
OCF growth 3Y41.38%
OCF growth 5Y17.48%