GMS INC (GMS) Stock Fundamental Analysis
USA - NYSE:GMS - US36251C1036 - Common Stock
109.96 USD
-0.01 (-0.01%)
109.97 USD
+0.01 (+0.01%)
We assign a fundamental rating of 5 out of 10 to GMS. GMS was compared to 50 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
In the past year GMS was profitable.
In the past year GMS had a positive cash flow from operations.
Each year in the past 5 years GMS has been profitable.
In the past 5 years GMS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.65%, GMS perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
The Return On Equity of GMS (7.01%) is comparable to the rest of the 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 10.24%.
The last Return On Invested Capital (6.19%) for GMS is well below the 3 year average (10.30%), which needs to be investigated, but indicates that GMS had better years and this may not be a problem.
| 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.
GMS's Profit Margin has improved in the last couple of years.
GMS has a Operating Margin of 5.03%. This is in the lower half of the industry: GMS underperforms 60.00% of its industry peers.
GMS's Operating Margin has been stable in the last couple of years.
GMS has a Gross Margin (31.15%) which is in line with 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 | 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
GMS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 better debt/assets ratio than last year.
2.2 Solvency
GMS has an Altman-Z score of 3.45. This indicates that GMS is financially healthy and has little risk of bankruptcy at the moment.
GMS has a Altman-Z score (3.45) which is comparable to the rest of the industry.
GMS has a debt to FCF ratio of 4.00. This is a good value and a sign of high solvency as GMS would need 4.00 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.00, GMS is doing good in the industry, outperforming 68.00% of the companies in the same industry.
GMS has a Debt/Equity ratio of 0.87. This is a neutral value indicating GMS is somewhat dependend on debt financing.
GMS has a Debt to Equity ratio of 0.87. This is comparable to the rest of the industry: GMS outperforms 42.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.66
WACC9.43%
2.3 Liquidity
A Current Ratio of 2.11 indicates that GMS has no problem at all paying its short term obligations.
GMS has a Current ratio (2.11) which is comparable to the rest of the industry.
GMS has a Quick Ratio of 1.31. This is a normal value and indicates that GMS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.31, GMS is in line with its industry, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for GMS have decreased strongly by -22.81% in the last year.
Measured over the past years, GMS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.71% on average per year.
GMS shows a decrease in Revenue. In the last year, the revenue decreased by -1.10%.
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
The Earnings Per Share is expected to grow by 11.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.94% on average over the next years.
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.
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 18.36, the valuation of GMS can be described as rather expensive.
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.
The average S&P500 Price/Earnings ratio is at 27.27. GMS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.71, the valuation of GMS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMS indicates a somewhat cheap valuation: GMS is cheaper than 72.00% of the companies listed in the same industry.
GMS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, 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.
84.00% 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 | 12.77 | ||
| EV/EBITDA | 12.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GMS does not grow enough to justify the current Price/Earnings ratio.
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-6.69%
Ins Owners0.62%
Ins Owner Change-17.89%
Market Cap4.20B
Analysts52
Price Target109.01 (-0.86%)
Short Float %2.61%
Short Ratio0.64
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
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%
ROICexcg growth 3Y-19.55%
ROICexcg 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%