Market Cap
US$1.4b
Last Updated
2020/11/26 00:36 UTC
Data Sources
Company Financials +
Executive Summary
GMS Inc. distributes wallboards, suspended ceilings systems, and complementary building products in the United States and Canada. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has GMS's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GMS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: GMS's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
1.7%
GMS
1.7%
US Trade Distributors
2.8%
US Market
1 Year Return
2.2%
GMS
19.4%
US Trade Distributors
19.7%
US Market
Return vs Industry: GMS underperformed the US Trade Distributors industry which returned 19.4% over the past year.
Return vs Market: GMS underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| GMS | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 1.7% | 2.8% |
| 30 Day | 32.3% | 17.9% | 8.0% |
| 90 Day | 23.2% | 15.8% | 6.8% |
| 1 Year | 2.2%2.2% | 21.7%19.4% | 22.4%19.7% |
| 3 Year | -12.6%-12.6% | 37.6%31.1% | 47.3%37.5% |
| 5 Year | n/a | 89.1%75.6% | 93.6%72.3% |
Long-Term Price Volatility Vs. Market
How volatile is GMS's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
How Much Are GMS Inc. (NYSE:GMS) Insiders Spending On Buying Shares?4 weeks ago | Simply Wall St
Here's Why GMS's (NYSE:GMS) Statutory Earnings Are Arguably Too Conservative1 month ago | Simply Wall St
Is GMS (NYSE:GMS) A Risky Investment?Valuation
Is GMS undervalued compared to its fair value and its price relative to the market?
20.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GMS ($31.88) is trading below our estimate of fair value ($40.24)
Significantly Below Fair Value: GMS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GMS is poor value based on its PE Ratio (51.8x) compared to the US Trade Distributors industry average (21.9x).
PE vs Market: GMS is poor value based on its PE Ratio (51.8x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: GMS is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: GMS is overvalued based on its PB Ratio (2x) compared to the US Trade Distributors industry average (1.7x).
Next Steps
Future Growth
How is GMS forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
22.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GMS's forecast earnings growth (22.3% per year) is above the savings rate (2.2%).
Earnings vs Market: GMS's earnings (22.3% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GMS's revenue (2.3% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: GMS's revenue (2.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if GMS's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has GMS performed over the past 5 years?
24.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GMS has a large one-off loss of $56.8M impacting its July 31 2020 financial results.
Growing Profit Margin: GMS's current net profit margins (0.8%) are lower than last year (2.2%).
Past Earnings Growth Analysis
Earnings Trend: GMS has become profitable over the past 5 years, growing earnings by 24.4% per year.
Accelerating Growth: GMS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GMS had negative earnings growth (-63.2%) over the past year, making it difficult to compare to the Trade Distributors industry average (-6.9%).
Return on Equity
High ROE: GMS's Return on Equity (3.8%) is considered low.
Next Steps
Financial Health
How is GMS's financial position?
Financial Position Analysis
Short Term Liabilities: GMS's short term assets ($878.9M) exceed its short term liabilities ($367.8M).
Long Term Liabilities: GMS's short term assets ($878.9M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: GMS's debt to equity ratio (139.6%) is considered high.
Reducing Debt: GMS's debt to equity ratio has reduced from 200.1% to 139.6% over the past 5 years.
Debt Coverage: GMS's debt is well covered by operating cash flow (31.5%).
Interest Coverage: GMS's interest payments on its debt are not well covered by EBIT (2.6x coverage).
Balance Sheet
Next Steps
Dividend
What is GMS current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GMS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GMS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GMS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GMS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GMS's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
John Turner (51 yo)
1.25yrs
Tenure
US$4,548,506
Compensation
Mr. John C. Turner, Jr., has been the President of GMS Inc. since May 1, 2019 and has been its Chief Executive Officer and Director since August 2, 2019. He joined GMS Inc. in 2019. He was the President of...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD4.55M) is about average for companies of similar size in the US market ($USD4.15M).
Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.25yrs | US$4.55m | 0.044% $ 596.6k | |
| VP & CFO | 1.08yrs | US$1.28m | 0.0054% $ 74.0k | |
| VP, General Counsel & Corporate Secretary | 5.33yrs | US$1.27m | 0.039% $ 533.4k | |
| Chief Accounting Officer | 0.17yr | no data | no data | |
| Chief Information Officer & VP | 3.58yrs | no data | no data | |
| Vice President of Investor Relations | 1.92yrs | no data | no data | |
| Marketing Director | no data | no data | no data | |
| Vice President of Corporate Development / M&A | no data | no data | no data | |
| VP & Chief Human Resources Officer | 0.92yr | no data | no data | |
| Vice President of Operations - Western Region | no data | no data | no data | |
| Director of Risk Management | no data | no data | no data |
1.3yrs
Average Tenure
53.5yo
Average Age
Experienced Management: GMS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.25yrs | US$4.55m | 0.044% $ 596.6k | |
| Independent Director | 0.83yr | US$48.74k | no data | |
| Independent Non-Executive Chairman | 1.08yrs | US$295.00k | 0.075% $ 1.0m | |
| Independent Director | 6.83yrs | US$200.00k | 0.039% $ 526.4k | |
| Independent Director | 6.83yrs | US$216.25k | 0.051% $ 698.0k | |
| Independent Director | 1.33yrs | US$172.50k | 0.011% $ 152.9k | |
| Independent Director | 1.58yrs | US$87.50k | 0.014% $ 187.2k | |
| Independent Director | 6.83yrs | US$192.50k | 0.044% $ 602.3k | |
| Independent Director | no data | no data | no data |
1.5yrs
Average Tenure
59yo
Average Age
Experienced Board: GMS's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.
Top Shareholders
Company Information
GMS Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: GMS Inc.
- Ticker: GMS
- Exchange: NYSE
- Founded: 1971
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$1.362b
- Shares outstanding: 42.74m
- Website: https://www.gms.com
Number of Employees
Location
- GMS Inc.
- 100 Crescent Centre Parkway
- Suite 800
- Tucker
- Georgia
- 30084
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GMS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 2016 |
| CLG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 2016 |
Biography
GMS Inc. distributes wallboards, suspended ceilings systems, and complementary building products in the United States and Canada. The company offers ceilings products, including suspended mineral fibers, s...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 00:36 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/07/31 |
| Annual Earnings | 2020/04/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.