GMS

GMSNYSE:GMS Stock Report

Market Cap

US$1.9b

7D

-5.5%

1Y

97.1%

Updated

18 Sep, 2021

Data

Company Financials +
GMS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends0/6

GMS Overview

GMS Inc. distributes wallboards, suspended ceilings systems, and complementary building products in the United States and Canada.

GMS Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GMS
Historical stock prices
Current Share PriceUS$44.76
52 Week HighUS$21.41
52 Week LowUS$53.85
Beta2.08
1 Month Change-5.19%
3 Month Change11.73%
1 Year Change97.09%
3 Year Change78.04%
5 Year Change95.71%
Change since IPO104.29%

Recent News & Updates

Sep 16
Here's Why I Think GMS (NYSE:GMS) Is An Interesting Stock

Here's Why I Think GMS (NYSE:GMS) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Aug 18
GMS (NYSE:GMS) Seems To Use Debt Quite Sensibly

GMS (NYSE:GMS) Seems To Use Debt Quite Sensibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 30
Is There An Opportunity With GMS Inc.'s (NYSE:GMS) 41% Undervaluation?

Is There An Opportunity With GMS Inc.'s (NYSE:GMS) 41% Undervaluation?

How far off is GMS Inc. ( NYSE:GMS ) from its intrinsic value? Using the most recent financial data, we'll take a look...

Shareholder Returns

GMSUS Trade DistributorsUS Market
7D-5.5%-1.1%-0.6%
1Y97.1%46.6%33.8%

Return vs Industry: GMS exceeded the US Trade Distributors industry which returned 46.6% over the past year.

Return vs Market: GMS exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is GMS's price volatile compared to industry and market?
GMS volatility
GMS Beta2.08
Industry Beta1.57
Market Beta1

Stable Share Price: GMS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GMS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19715,843John Turnerhttps://www.gms.com

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, 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, lumber and other wood products, ready-mix joint compound, and various other interior construction products, as well as ancillary products comprising tools, fasteners, and safety products.

Valuation

Is GMS undervalued compared to its fair value and its price relative to the market?

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMS ($44.76) is trading below our estimate of fair value ($83.31)

Significantly Below Fair Value: GMS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GMS is good value based on its PE Ratio (13.8x) compared to the US Trade Distributors industry average (21.9x).

PE vs Market: GMS is good value based on its PE Ratio (13.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GMS is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: GMS's PB Ratio (2.2x) is in line with the US Trade Distributors industry average.


Future Growth

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

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMS's forecast earnings growth (13% per year) is above the savings rate (2%).

Earnings vs Market: GMS's earnings (13% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: GMS's earnings are forecast to grow, but not significantly.

Revenue vs Market: GMS's revenue (3.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: GMS's revenue (3.2% 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


Past Performance

How has GMS performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMS has high quality earnings.

Growing Profit Margin: GMS's current net profit margins (3.9%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: GMS's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: GMS's earnings growth over the past year (436.2%) exceeds its 5-year average (12.6% per year).

Earnings vs Industry: GMS earnings growth over the past year (436.2%) exceeded the Trade Distributors industry 49.2%.


Return on Equity

High ROE: GMS's Return on Equity (15.9%) is considered low.


Financial Health

How is GMS's financial position?


Financial Position Analysis

Short Term Liabilities: GMS's short term assets ($1.2B) exceed its short term liabilities ($578.3M).

Long Term Liabilities: GMS's short term assets ($1.2B) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: GMS's debt to equity ratio (110.4%) is considered high.

Reducing Debt: GMS's debt to equity ratio has reduced from 115.9% to 110.4% over the past 5 years.

Debt Coverage: GMS's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: GMS's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


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?

1.9yrs

Average management tenure


CEO

John Turner (52 yo)

2.08yrs

Tenure

US$4,134,614

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 ($USD4.13M) is about average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GMS's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: GMS's board of directors are not considered experienced ( 2.2 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: GMS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GMS Inc.'s 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$1.931b
  • Shares outstanding: 43.15m
  • Website: https://www.gms.com

Number of Employees


Location

  • GMS Inc.
  • 100 Crescent Centre Parkway
  • Suite 800
  • Tucker
  • Georgia
  • 30084
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:09
End of Day Share Price2021/09/17 00:00
Earnings2021/07/31
Annual Earnings2021/04/30


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.