GMS INC (GMS)
US36251C1036 - Common Stock
GMS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. GMS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
GMS had a positive operating cash flow in the past year.
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
GMS has a Return On Assets of 9.03%. This is in the better half of the industry: GMS outperforms 76.47% of its industry peers.
The Return On Equity of GMS (20.81%) is comparable to the rest of the industry.
GMS's Return On Invested Capital of 12.88% is fine compared to the rest of the industry. GMS outperforms 74.51% of its industry peers.
GMS had an Average Return On Invested Capital over the past 3 years of 11.70%. This is in line with the industry average of 11.65%.
The last Return On Invested Capital (12.88%) for GMS is above the 3 year average (11.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 20.81% | ||
| ROIC | 12.88% |
ROA(3y)7.75%
ROA(5y)5.36%
ROE(3y)21.55%
ROE(5y)15.4%
ROIC(3y)11.7%
ROIC(5y)9.66%
1.3 Margins
The Profit Margin of GMS (5.47%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GMS has grown nicely.
GMS has a Operating Margin of 8.47%. This is comparable to the rest of the industry: GMS outperforms 52.94% of its industry peers.
GMS's Operating Margin has improved in the last couple of years.
The Gross Margin of GMS (32.42%) is comparable to the rest of the industry.
GMS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.47% | ||
| PM (TTM) | 5.47% | ||
| GM | 32.42% |
OM growth 3Y21.86%
OM growth 5Y14.84%
PM growth 3Y105.61%
PM growth 5Y20.03%
GM growth 3Y-0.43%
GM growth 5Y-0.13%
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
Compared to 1 year ago, GMS has an improved debt to assets ratio.
2.2 Solvency
GMS has an Altman-Z score of 4.06. This indicates that GMS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GMS (4.06) is better than 72.55% of its industry peers.
The Debt to FCF ratio of GMS is 2.75, which is a good value as it means it would take GMS, 2.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GMS (2.75) is better than 62.75% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that GMS is somewhat dependend on debt financing.
GMS has a Debt to Equity ratio (0.69) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 4.06 |
ROIC/WACC1.48
WACC8.72%
2.3 Liquidity
A Current Ratio of 2.40 indicates that GMS has no problem at all paying its short term obligations.
GMS has a Current ratio (2.40) which is in line with its industry peers.
A Quick Ratio of 1.47 indicates that GMS should not have too much problems paying its short term obligations.
GMS's Quick ratio of 1.47 is fine compared to the rest of the industry. GMS outperforms 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
GMS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.19%.
The Earnings Per Share has been growing by 37.03% on average over the past years. This is a very strong growth
Looking at the last year, GMS shows a small growth in Revenue. The Revenue has grown by 1.49% in the last year.
The Revenue has been growing by 16.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.19%
EPS 3Y45.67%
EPS 5Y37.03%
EPS growth Q2Q-13.51%
Revenue 1Y (TTM)1.49%
Revenue growth 3Y18.03%
Revenue growth 5Y16.24%
Revenue growth Q2Q1.92%
3.2 Future
Based on estimates for the next years, GMS will show a small growth in Earnings Per Share. The EPS will grow by 0.61% on average per year.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y-8.05%
EPS Next 2Y-1.87%
EPS Next 3Y0.61%
EPS Next 5YN/A
Revenue Next Year3.5%
Revenue Next 2Y4.56%
Revenue Next 3Y4.21%
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
Based on the Price/Earnings ratio of 10.73, the valuation of GMS can be described as reasonable.
Based on the Price/Earnings ratio, GMS is valued cheaper than 82.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of GMS to the average of the S&P500 Index (24.76), we can say GMS is valued rather cheaply.
GMS is valuated reasonably with a Price/Forward Earnings ratio of 10.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMS indicates a rather cheap valuation: GMS is cheaper than 94.12% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GMS to the average of the S&P500 Index (21.26), we can say GMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
GMS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GMS is cheaper than 68.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GMS is valued cheaply inside the industry as 84.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 7.74 |
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)0.29
EPS Next 2Y-1.87%
EPS Next 3Y0.61%
5. Dividend
5.1 Amount
GMS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GMS INC
NYSE:GMS (4/19/2024, 7:04:00 PM)
After market: 90.25 0 (0%)90.25
+0.17 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 10.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 20.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.47% | ||
| PM (TTM) | 5.47% | ||
| GM | 32.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.19%
EPS 3Y45.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.49%
Revenue growth 3Y18.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y