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. Both the profitability and the financial health of GMS get a neutral evaluation. Nothing too spectacular is happening here. GMS has a correct valuation and a medium growth rate.
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.
GMS had positive earnings in each of the past 5 years.
GMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GMS (2.65%) is comparable to the rest of the industry.
GMS has a Return On Equity of 7.01%. This is comparable to the rest of the industry: GMS outperforms 46.00% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for GMS is in line with the industry average of 10.21%.
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's Operating Margin of 5.03% is on the low side compared to the rest of the industry. GMS is outperformed by 60.00% of its industry peers.
In the last couple of years the Operating Margin of GMS has remained more or less at the same level.
GMS has a Gross Margin of 31.15%. This is comparable to the rest of the industry: GMS outperforms 54.00% of 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GMS is still creating some value.
Compared to 1 year ago, GMS has less shares outstanding
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 3.45. This indicates that GMS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.45, GMS is in line with its industry, outperforming 56.00% of the companies in the same industry.
The Debt to FCF ratio of GMS is 4.00, which is a good value as it means it would take GMS, 4.00 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.00, GMS is in the better half of 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 (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.66
WACC9.43%
2.3 Liquidity
GMS has a Current Ratio of 2.11. This indicates that GMS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.11, GMS is in line with its industry, outperforming 56.00% of the companies in the same 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.
GMS has a Quick ratio of 1.31. This is comparable to the rest of the industry: GMS outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
GMS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.81%.
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.
The Revenue has decreased by -1.10% in the past year.
Measured over the past years, GMS shows a quite strong growth in Revenue. The Revenue has been growing by 11.21% on average per year.
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.
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 2Y10.15%
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.
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
With a Price/Earnings ratio of 18.36, GMS is valued on the expensive side.
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.
GMS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.71, which indicates a correct valuation of GMS.
Based on the Price/Forward Earnings ratio, GMS is valued a bit cheaper than 72.00% of the companies in the same industry.
GMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
62.00% of the companies in the same industry are more expensive than GMS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GMS is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
| 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 an expensive valuation of the company.
PEG (NY)7.82
PEG (5Y)1.17
EPS Next 2Y10.15%
EPS Next 3Y11.83%
5. Dividend
5.1 Amount
GMS does not give a dividend.
| 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-1.66%
Ins Owners0.62%
Ins Owner Change-18.99%
Market Cap4.20B
Revenue(TTM)5.48B
Net Income(TTM)101.78M
Analysts52
Price Target109.01 (-0.86%)
Short Float %N/A
Short RatioN/A
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
Graham NumberN/A
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%
ROICexgc growth 3Y-19.55%
ROICexgc 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%
GMS INC / GMS FAQ
What is the ChartMill fundamental rating of GMS INC (GMS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GMS.
Can you provide the valuation status for GMS INC?
ChartMill assigns a valuation rating of 5 / 10 to GMS INC (GMS). This can be considered as Fairly Valued.
Can you provide the profitability details for GMS INC?
GMS INC (GMS) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for GMS stock?
The Earnings per Share (EPS) of GMS INC (GMS) is expected to grow by 2.35% in the next year.