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Should you consider NYSE:GMS for quality investing?

By Mill Chart

Last update: Feb 22, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if GMS INC (NYSE:GMS) is suited for quality investing. Investors should of course do their own research, but we spotted GMS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NYSE:GMS.

  • GMS INC has demonstrated significant revenue growth over the past 5 years, with a 16.24% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of GMS INC stands at 24.27%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • GMS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.67, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a robust Profit Quality (5-year) ratio of 359.0%, GMS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • With a robust 5-year EBIT growth of 33.49%, GMS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, GMS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NYSE:GMS

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall GMS gets a fundamental rating of 6 out of 10. We evaluated GMS against 52 industry peers in the Trading Companies & Distributors industry. GMS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GMS is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, GMS could be worth investigating further for value investing!.

Check the latest full fundamental report of GMS for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NYSE:GMS (4/22/2024, 7:04:35 PM)

After market: 90.79 0 (0%)


+0.54 (+0.6%)

GMS News

News Image21 days ago - ChartmillWhy the quality investor may take a look at GMS INC (NYSE:GMS).

This article explores why quality investors may have a look at GMS INC (NYSE:GMS)

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