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GMS

NYSE:GMS
Snowflake Description

Very undervalued with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GMS
NYSE
$637M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

GMS Inc. distributes wallboards, suspended ceilings systems, and related construction products in the United States and Canada. The last earnings update was 16 days ago. More info.


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  • GMS has significant price volatility in the past 3 months.
GMS Share Price and Events
7 Day Returns
-4.9%
NYSE:GMS
-0.4%
US Trade Distributors
1.2%
US Market
1 Year Returns
-49.6%
NYSE:GMS
-10.5%
US Trade Distributors
3%
US Market
GMS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GMS (GMS) -4.9% -23.8% 7.2% -49.6% - -
US Trade Distributors -0.4% -4.5% 13% -10.5% 28% 12.5%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • GMS underperformed the Trade Distributors industry which returned -10.5% over the past year.
  • GMS underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
GMS
Industry
5yr Volatility vs Market

Value

 Is GMS undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of GMS to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for GMS.

NYSE:GMS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GMS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.927 (1 + (1- 21%) (193.58%))
1.901
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.901 * 5.96%)
14.06%

Discounted Cash Flow Calculation for NYSE:GMS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for GMS is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GMS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.06%)
2019 145.98 Analyst x4 127.98
2020 170.86 Analyst x5 131.33
2021 177.23 Analyst x4 119.43
2022 177.00 Analyst x1 104.57
2023 191.00 Analyst x1 98.93
2024 197.06 Est @ 3.17% 89.49
2025 203.05 Est @ 3.04% 80.85
2026 209.04 Est @ 2.95% 72.97
2027 215.07 Est @ 2.88% 65.82
2028 221.17 Est @ 2.84% 59.34
Present value of next 10 years cash flows $950.72
NYSE:GMS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $221.17 × (1 + 2.73%) ÷ (14.06% – 2.73%)
$2,005.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,005.17 ÷ (1 + 14.06%)10
$538.00
NYSE:GMS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $950.72 + $538.00
$1,488.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,488.72 / 40.57
$36.69
NYSE:GMS Discount to Share Price
Calculation Result
Value per share (USD) From above. $36.69
Current discount Discount to share price of $15.71
= -1 x ($15.71 - $36.69) / $36.69
57.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price GMS is available for.
Intrinsic value
>50%
Share price is $15.71 vs Future cash flow value of $36.69
Current Discount Checks
For GMS to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • GMS's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • GMS's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for GMS's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are GMS's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GMS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in USD $1.18
NYSE:GMS Share Price ** NYSE (2019-03-20) in USD $15.71
United States of America Trade Distributors Industry PE Ratio Median Figure of 43 Publicly-Listed Trade Distributors Companies 13.69x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of GMS.

NYSE:GMS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GMS Share Price ÷ EPS (both in USD)

= 15.71 ÷ 1.18

13.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GMS is good value based on earnings compared to the US Trade Distributors industry average.
  • GMS is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does GMS's expected growth come at a high price?
Raw Data
NYSE:GMS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
24.2%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 34 Publicly-Listed Trade Distributors Companies 1.2x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:GMS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.34x ÷ 24.2%

0.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GMS is good value based on expected growth next year.
Price based on value of assets
What value do investors place on GMS's assets?
Raw Data
NYSE:GMS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in USD $15.62
NYSE:GMS Share Price * NYSE (2019-03-20) in USD $15.71
United States of America Trade Distributors Industry PB Ratio Median Figure of 54 Publicly-Listed Trade Distributors Companies 1.52x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:GMS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GMS Share Price ÷ Book Value per Share (both in USD)

= 15.71 ÷ 15.62

1.01x

* Primary Listing of GMS.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GMS is good value based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess GMS's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. GMS has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is GMS expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is GMS expected to grow at an attractive rate?
  • GMS's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • GMS's earnings growth is expected to exceed the United States of America market average.
  • GMS's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GMS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GMS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 24.2%
NYSE:GMS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 3.5%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GMS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GMS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-04-30 3,590 205 165 1
2022-04-30 3,446 191 138 1
2021-04-30 3,329 196 111 5
2020-04-30 3,261 190 104 7
2019-04-30 3,122 165 60 7
NYSE:GMS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-31 2,972 128 48
2018-10-31 2,833 102 62
2018-07-31 2,647 32 56
2018-04-30 2,511 89 63
2018-01-31 2,491 97 67
2017-10-31 2,468 98 56
2017-07-31 2,412 106 55
2017-04-30 2,319 67 49
2017-01-31 2,231 66 44
2016-10-31 2,089 51 33
2016-07-31 1,956 36 19
2016-04-30 1,858 48 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GMS's earnings are expected to grow significantly at over 20% yearly.
  • GMS's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GMS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from GMS Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GMS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-04-30 3.64 3.64 3.64 1.00
2022-04-30 3.13 3.13 3.13 1.00
2021-04-30 2.59 2.93 2.22 3.00
2020-04-30 2.44 3.03 2.04 4.00
2019-04-30 1.66 2.39 1.39 4.00
NYSE:GMS Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-31 1.18
2018-10-31 1.52
2018-07-31 1.37
2018-04-30 1.54
2018-01-31 1.64
2017-10-31 1.36
2017-07-31 1.34
2017-04-30 1.21
2017-01-31 1.14
2016-10-31 0.91
2016-07-31 0.55
2016-04-30 0.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • GMS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess GMS's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
GMS has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has GMS performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare GMS's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • GMS has delivered over 20% year on year earnings growth in the past 5 years.
  • GMS's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • GMS's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.
Earnings and Revenue History
GMS's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from GMS Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GMS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 2,971.68 48.36 698.19
2018-10-31 2,833.29 62.42 678.02
2018-07-31 2,647.46 56.12 653.42
2018-04-30 2,511.47 62.97 633.88
2018-01-31 2,490.65 67.32 625.19
2017-10-31 2,467.66 55.87 616.39
2017-07-31 2,411.50 55.07 606.09
2017-04-30 2,319.15 48.89 585.08
2017-01-31 2,231.35 43.55 565.72
2016-10-31 2,089.31 33.12 529.44
2016-07-31 1,955.54 18.72 492.44
2016-04-30 1,858.18 12.56 470.04
2016-01-31 1,735.50 7.34 435.52
2015-10-31 1,673.04 -1.99 421.09
2015-07-31 1,628.12 -2.61 407.17
2015-04-30 1,570.09 -11.70 395.04
2014-04-30 1,353.34 -18.95 330.17
2013-04-30 1,161.61 -182.63 295.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • GMS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • GMS used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • GMS has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess GMS's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
GMS has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is GMS's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up GMS's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • GMS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • GMS's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of GMS's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from GMS Company Filings, last reported 1 month ago.

NYSE:GMS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 633.76 1,233.85 74.35
2018-10-31 641.26 1,245.23 52.88
2018-07-31 619.28 1,303.64 36.87
2018-04-30 579.45 595.89 36.44
2018-01-31 568.29 597.48 28.94
2017-10-31 547.68 610.54 19.78
2017-07-31 530.53 602.86 19.74
2017-04-30 514.61 594.92 14.56
2017-01-31 499.28 612.28 10.60
2016-10-31 490.25 644.49 16.39
2016-07-31 472.57 546.73 9.83
2016-04-30 311.16 644.61 19.07
2016-01-31 298.91 626.28 7.38
2015-10-31 299.89 563.13 9.42
2015-07-31 290.76 582.77 13.17
2015-04-30 299.57 556.98 12.28
2014-04-30 299.43 538.79 32.66
2013-04-30
  • GMS's level of debt (194.7%) compared to net worth is high (greater than 40%).
  • Unable to establish if GMS's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (10.3%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess GMS's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. GMS has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is GMS's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from GMS dividends.
If you bought $2,000 of GMS shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate GMS's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate GMS's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GMS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GMS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-04-30
2022-04-30
2021-04-30
2020-04-30
2019-04-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as GMS has not reported any payouts.
  • Unable to verify if GMS's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of GMS's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as GMS has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess GMS's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can GMS afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. GMS has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of GMS's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
G. Callahan
COMPENSATION $1,201,526
AGE 64
TENURE AS CEO 3.8 years
CEO Bio

Mr. G. Michael Callahan, also known as Mike, Jr., has been Chief Executive Officer and President at GMS, Inc. (alternate name Gypsum Management And Supply Inc) since May 1, 2015 and 2013 respectively. Mr. Callahan directs all corporate and administrative staff and coordinates acquisitions and expansions as well as all legal, banking, real estate and credit relationships. He joined at GMS, in 1993 and served as Vice President of Finance and Chief Financial Officer from 1993 to 2013. From 1974 to 1993, he served as a Senior Vice President and Group Manager at C&S National Bank and Nations Bank. He serves as Director at GMS, Inc. Mr. Callahan earned a B.A. in Economics from Georgia State University.

CEO Compensation
  • G.'s compensation has been consistent with company performance over the past year.
  • G.'s remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the GMS management team in years:

1.9
Average Tenure
55
Average Age
  • The average tenure for the GMS management team is less than 2 years, this suggests a new team.
Management Team

G. Callahan

TITLE
President
COMPENSATION
$1M
AGE
64
TENURE
3.8 yrs

Richard Adams

TITLE
Senior Vice President of Operations
COMPENSATION
$484K
AGE
58
TENURE
2.3 yrs

Craig Apolinsky

TITLE
VP, General Counsel & Corporate Secretary
COMPENSATION
$715K
AGE
51
TENURE
3.7 yrs

Doug Goforth

TITLE
Consultant
COMPENSATION
$527K
AGE
55
TENURE
0.2 yrs

A. Ross

TITLE
Interim Principal Financial Officer
AGE
51
TENURE
0.2 yrs

Eric Sundby

TITLE
Chief Information Officer & VP
TENURE
1.9 yrs

Leslie Kratcoski

TITLE
Vice President of Investor Relations
TENURE
0.3 yrs

Michelle Leader

TITLE
Marketing Director

G. Hendren

TITLE
Vice President of Corporate Development / M&A

Khara Julien

TITLE
Chief Human Resources Officer & VP of Human Resources
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the GMS board of directors in years:

5.2
Average Tenure
64
Average Age
  • The tenure for the GMS board of directors is about average.
Board of Directors

Richard Mueller

TITLE
Chairman
COMPENSATION
$610K
AGE
76
TENURE
3.8 yrs

G. Callahan

TITLE
President
COMPENSATION
$1M
AGE
64

Brian Hoesterey

TITLE

J. Sharpe

TITLE
Director
AGE
44
TENURE
5.2 yrs

Peter Browning

TITLE
Director
COMPENSATION
$186K
AGE
77
TENURE
5.2 yrs

Jack Gavin

TITLE
Lead Independent Director
COMPENSATION
$201K
AGE
62

J. Smith

TITLE
Director
COMPENSATION
$194K
AGE
69
TENURE
5.2 yrs

Tig Gilliam

TITLE
Director
COMPENSATION
$164K
AGE
54
TENURE
5.2 yrs

Ronald Ross

TITLE
Director
COMPENSATION
$169K
AGE
65
TENURE
5.2 yrs

Brian Hoesterey

TITLE
Director
AGE
50
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Dec 18 Buy John Gavin Individual 14. Dec 18 14. Dec 18 6,160 $16.21 $99,863
17. Dec 18 Buy Ronald Ross Individual 13. Dec 18 14. Dec 18 100,000 $16.02 $1,565,520
13. Dec 18 Buy Ronald Ross Individual 11. Dec 18 12. Dec 18 100,000 $15.78 $1,562,610
13. Dec 18 Buy J. Smith Individual 11. Dec 18 11. Dec 18 6,000 $15.92 $95,514
10. Sep 18 Buy John Gavin Individual 10. Sep 18 10. Sep 18 4,150 $24.13 $100,143
05. Sep 18 Buy Richard Adams Individual 05. Sep 18 05. Sep 18 3,000 $24.14 $72,428
05. Sep 18 Buy A. Ross Individual 04. Sep 18 04. Sep 18 2,061 $24.26 $50,006
10. Jul 18 Buy Craig Apolinsky Individual 06. Jul 18 06. Jul 18 1,000 $26.32 $26,320
10. Jul 18 Buy Richard Adams Individual 06. Jul 18 06. Jul 18 2,000 $26.44 $52,887
05. Jul 18 Buy J. Smith Individual 02. Jul 18 02. Jul 18 2,000 $26.66 $53,310
X
Management checks
We assess GMS's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. GMS has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does GMS Inc.'s (NYSE:GMS) P/E Ratio Signal A Buying Opportunity?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at GMS Inc.'s (NYSE:GMS) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Will GMS Inc.'s (NYSE:GMS) Earnings Grow Over The Next Year?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … the consensus outlook from analysts appear fairly confident,

Simply Wall St -

What Does GMS Inc.’s (NYSE:GMS) 7.8% ROCE Say About The Business?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Who Has Been Buying GMS Inc. (NYSE:GMS) Shares?

That means that an insider was happy to buy shares at around the current price. … In any event it's generally a positive if insiders are buying shares at around the current price. … In the last twelve months there was more buying than selling by GMS insiders

Simply Wall St -

Should GMS Inc (NYSE:GMS) Focus On Improving This Fundamental Metric?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.091 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does GMS Inc's (NYSE:GMS) P/E Ratio Signal A Buying Opportunity?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how GMS Inc's (NYSE:GMS) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Investors Are Undervaluing GMS Inc (NYSE:GMS) By 39.23%

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

GMS Inc (NYSE:GMS): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like GMS Inc (NYSE:GMS), with a market cap of US$1.09b. … However, an important fact which most ignore is: how financially healthy is the business? … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

Should You Worry About GMS Inc's (NYSE:GMS) CEO Pay?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Who Are The Major Shareholders Of GMS Inc (NYSE:GMS)?

In this article, I will take a quick look at GMS Inc’s (NYSE:GMS) recent ownership structure – an unconventional investing subject, but an important one. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … Therefore, it is beneficial for us to examine GMS's ownership structure in more detail.

Simply Wall St -

Company Info

Description

GMS Inc. distributes wallboards, suspended ceilings systems, and related construction products in the United States and Canada. The company offers wallboard products; and ceilings products, including suspended mineral fibers, soft fibers, and metal ceiling systems primarily used in offices, hotels, hospitals, retail facilities, schools, and various other commercial and institutional buildings. It also provides steel framing products, such as steel tracks, studs, and various other steel products used to frame the interior walls of a commercial or institutional building; and insulation, ready-mix joint compound, and various other interior construction products, as well as ancillary products comprising tools and safety products. In addition, the company distributes drywall, lumber, commercial, and residential building materials. As of April 30, 2018, it operated 214 branches across 42 states and the District of Columbia. The company also operates a network of approximately 240 distribution centers. The company was formerly known as GYP Holdings I Corp. and changed its name to GMS Inc. in July 2015. GMS Inc. was founded in 1971 and is headquartered in Tucker, Georgia.

Details
Name: GMS Inc.
GMS
Exchange: NYSE
Founded: 1971
$637,385,632
40,571,969
Website: http://www.gms.com
Address: GMS Inc.
100 Crescent Centre Parkway,
Suite 800,
Tucker,
Georgia, 30084,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GMS Common Stock New York Stock Exchange US USD 26. May 2016
DB CLG Common Stock Deutsche Boerse AG DE EUR 26. May 2016
Number of employees
Current staff
Staff numbers
4,600
GMS employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 00:56
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/03/05
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/04/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.