GMS INC (GMS) Stock Fundamental Analysis
NYSE:GMS - New York Stock Exchange, Inc. - US36251C1036 - Common Stock - Currency: USD
Taking everything into account, GMS scores 5 out of 10 in our fundamental rating. GMS was compared to 48 industry peers in the Trading Companies & Distributors industry. GMS has an average financial health and profitability rating. GMS is valued quite cheap, while showing a decent growth score. This is a good combination! This makes GMS very considerable for value investing!
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.
Each year in the past 5 years GMS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.45%, GMS is doing good in the industry, outperforming 63.83% of the companies in the same industry.
GMS's Return On Equity of 14.91% is in line compared to the rest of the industry. GMS outperforms 48.94% of its industry peers.
The Return On Invested Capital of GMS (8.59%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GMS is above the industry average of 9.69%.
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
GMS has a Profit Margin of 3.92%. This is comparable to the rest of the industry: GMS outperforms 46.81% of its industry peers.
GMS's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of GMS has grown nicely.
GMS has a Gross Margin (31.81%) 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GMS is still 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.
Compared to 1 year ago, GMS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.18 indicates that GMS is not in any danger for bankruptcy at the moment.
GMS has a Altman-Z score of 3.18. This is comparable to the rest of the industry: GMS outperforms 57.45% of its industry peers.
GMS has a debt to FCF ratio of 4.23. This is a neutral value as GMS would need 4.23 years to pay back of all of its debts.
The Debt to FCF ratio of GMS (4.23) is better than 65.96% 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 of 0.97. This is comparable to the rest of the industry: GMS outperforms 42.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.77
WACC11.18%
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 63.83% 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.
The Earnings Per Share has been growing by 24.06% on average over the past years. This is a very strong growth
GMS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.12%.
GMS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.04% yearly.
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
The Earnings Per Share is expected to grow by 5.56% on average over the next years.
Based on estimates for the next years, GMS will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y-11.35%
EPS Next 2Y-0.1%
EPS Next 3Y5.56%
EPS Next 5YN/A
Revenue Next Year2.68%
Revenue Next 2Y2.7%
Revenue Next 3Y3.85%
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.
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 11.12 indicates a reasonable valuation of GMS.
Compared to the rest of the industry, the Price/Earnings ratio of GMS indicates a rather cheap valuation: GMS is cheaper than 82.98% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GMS to the average of the S&P500 Index (28.58), we can say GMS is valued rather cheaply.
GMS is valuated reasonably with a Price/Forward Earnings ratio of 10.13.
85.11% 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 24.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GMS is valued a bit cheaper than 65.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GMS is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.22 | ||
| EV/EBITDA | 8.81 |
4.3 Compensation for Growth
The decent profitability rating of GMS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-0.1%
EPS Next 3Y5.56%
5. Dividend
5.1 Amount
GMS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GMS INC
NYSE:GMS (1/24/2025, 7:00:00 PM)
After market: 83.18 0 (0%)83.18
-0.69 (-0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners105.52%
Inst Owner Change0.09%
Ins Owners0.56%
Ins Owner Change2.26%
Market Cap3.23B
Analysts75
Price Target102.11 (22.76%)
Short Float %3.36%
Short Ratio2.97
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)7.65%
PT rev (3m)10.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.58 | ||
| P/FCF | 9.22 | ||
| P/OCF | 8.05 | ||
| P/B | 2.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.81 |
EPS(TTM)7.48
EY8.99%
EPS(NY)8.21
Fwd EY9.87%
FCF(TTM)9.03
FCFY10.85%
OCF(TTM)10.33
OCFY12.42%
SpS144.01
BVpS37.85
TBVpS-0.76
PEG (NY)N/A
PEG (5Y)0.46
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 | 3.18 |
F-Score4
WACC11.18%
ROIC/WACC0.77
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-0.1%
EPS Next 3Y5.56%
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 2Y2.7%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
EBIT growth 1Y-19.9%
EBIT growth 3Y32.38%
EBIT growth 5Y23.81%
EBIT Next Year18.52%
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%