GMS INC (GMS) Stock Fundamental Analysis
NYSE:GMS - New York Stock Exchange, Inc. - US36251C1036 - Common Stock - Currency: USD
GMS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of GMS get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years GMS has always 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 3.01%, GMS perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
GMS's Return On Equity of 8.13% is in line compared to the rest of the industry. GMS outperforms 50.00% of its industry peers.
The Return On Invested Capital of GMS (6.75%) is comparable to the rest of the industry.
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 9.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 8.13% | ||
| ROIC | 6.75% |
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
Looking at the Profit Margin, with a value of 2.09%, GMS is doing worse than 60.42% of the companies in the same industry.
GMS's Profit Margin has improved in the last couple of years.
GMS has a Operating Margin of 5.31%. This is in the lower half of the industry: GMS underperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of GMS has remained more or less at the same level.
With a Gross Margin value of 31.23%, GMS perfoms like the industry average, outperforming 52.08% of the companies in the same 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 | 5.31% | ||
| PM (TTM) | 2.09% | ||
| GM | 31.23% |
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.
Compared to 1 year ago, GMS has less shares outstanding
GMS has less shares outstanding than it did 5 years ago.
GMS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.42 indicates that GMS is not in any danger for bankruptcy at the moment.
The Altman-Z score of GMS (3.42) is comparable to the rest of the industry.
GMS has a debt to FCF ratio of 3.76. This is a good value and a sign of high solvency as GMS would need 3.76 years to pay back of all of its debts.
GMS's Debt to FCF ratio of 3.76 is in line compared to the rest of the industry. GMS outperforms 58.33% of its industry peers.
GMS has a Debt/Equity ratio of 0.85. This is a neutral value indicating GMS is somewhat dependend on debt financing.
GMS has a Debt to Equity ratio of 0.85. This is in the lower half of the industry: GMS underperforms 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.72
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.91 indicates that GMS should not have too much problems paying its short term obligations.
GMS has a Current ratio (1.91) which is in line with its industry peers.
GMS has a Quick Ratio of 1.17. 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 (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
GMS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.15%.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.22%.
The Revenue has been growing by 11.21% on average over the past years. This is quite good.
EPS 1Y (TTM)-25.15%
EPS 3Y-6.35%
EPS 5Y15.71%
EPS Q2Q%-33.16%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y5.96%
Revenue growth 5Y11.21%
Sales Q2Q%-5.61%
3.2 Future
GMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.83% yearly.
Based on estimates for the next years, GMS will show a small growth in Revenue. The Revenue will grow by 1.94% on average per year.
EPS Next Y2.35%
EPS Next 2Y10.17%
EPS Next 3Y11.83%
EPS Next 5YN/A
Revenue Next Year-0.22%
Revenue Next 2Y2.12%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 17.79, GMS is valued on the expensive side.
Based on the Price/Earnings ratio, GMS is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GMS to the average of the S&P500 Index (26.82), we can say GMS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.39, the valuation of GMS can be described as rather expensive.
64.58% of the companies in the same industry are more expensive than GMS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.21. GMS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
GMS's Enterprise Value to EBITDA ratio is in line with the industry average.
85.42% 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 | 12.39 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.58
PEG (5Y)1.13
EPS Next 2Y10.17%
EPS Next 3Y11.83%
5. Dividend
5.1 Amount
No dividends for GMS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
109.61
-0.03 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners107.24%
Inst Owner Change-0.07%
Ins Owners0.61%
Ins Owner Change0.92%
Market Cap4.17B
Analysts52
Price Target109.01 (-0.55%)
Short Float %3.2%
Short Ratio0.86
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)1
Avg EPS beat(2)-10.05%
Min EPS beat(2)-34.78%
Max EPS beat(2)14.68%
EPS beat(4)1
Avg EPS beat(4)-9.91%
Min EPS beat(4)-34.78%
Max EPS beat(4)14.68%
EPS beat(8)2
Avg EPS beat(8)-5.85%
EPS beat(12)5
Avg EPS beat(12)-1.09%
EPS beat(16)8
Avg EPS beat(16)3.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-3.47%
Max Revenue beat(2)1.82%
Revenue beat(4)1
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)1.82%
Revenue beat(8)3
Avg Revenue beat(8)-0.58%
Revenue beat(12)6
Avg Revenue beat(12)0.1%
Revenue beat(16)10
Avg Revenue beat(16)1.07%
PT rev (1m)22.19%
PT rev (3m)28.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.47%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 17.39 | ||
| P/S | 0.76 | ||
| P/FCF | 12.39 | ||
| P/OCF | 10.86 | ||
| P/B | 2.93 | ||
| P/tB | 1955.48 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)6.16
EY5.62%
EPS(NY)6.3
Fwd EY5.75%
FCF(TTM)8.84
FCFY8.07%
OCF(TTM)10.09
OCFY9.21%
SpS145.1
BVpS37.37
TBVpS0.06
PEG (NY)7.58
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 8.13% | ||
| ROCE | 9.65% | ||
| ROIC | 6.75% | ||
| ROICexc | 6.88% | ||
| ROICexgc | 13.13% | ||
| OM | 5.31% | ||
| PM (TTM) | 2.09% | ||
| GM | 31.23% | ||
| FCFM | 6.1% |
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-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.76 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 28.93% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 83.98% | ||
| Profit Quality | 291.06% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 3.42 |
F-Score5
WACC9.39%
ROIC/WACC0.72
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)-25.15%
EPS 3Y-6.35%
EPS 5Y15.71%
EPS Q2Q%-33.16%
EPS Next Y2.35%
EPS Next 2Y10.17%
EPS Next 3Y11.83%
EPS Next 5YN/A
Revenue 1Y (TTM)0.22%
Revenue growth 3Y5.96%
Revenue growth 5Y11.21%
Sales Q2Q%-5.61%
Revenue Next Year-0.22%
Revenue Next 2Y2.12%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
EBIT growth 1Y-33.92%
EBIT growth 3Y-11.27%
EBIT growth 5Y11.5%
EBIT Next Year50.83%
EBIT Next 3Y20.73%
EBIT Next 5YN/A
FCF growth 1Y-10.62%
FCF growth 3Y34.38%
FCF growth 5Y3.88%
OCF growth 1Y-11.47%
OCF growth 3Y28.78%
OCF growth 5Y4.82%