NYSE:GMS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Very undervalued with solid track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.3%

GMS

12.9%

US Trade Distributors

9.9%

US Market


1 Year Return

2.4%

GMS

-24.6%

US Trade Distributors

-11.9%

US Market

Return vs Industry: GMS exceeded the US Trade Distributors industry which returned -24.6% over the past year.

Return vs Market: GMS exceeded the US Market which returned -11.9% over the past year.


Shareholder returns

GMSIndustryMarket
7 Day32.3%12.9%9.9%
30 Day-32.2%-25.4%-15.0%
90 Day-42.8%-36.4%-21.5%
1 Year2.4%2.4%-23.1%-24.6%-10.0%-11.9%
3 Year-55.8%-55.8%-18.9%-22.8%12.3%5.1%
5 Yearn/a-1.7%-9.2%32.5%18.1%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMS ($15.49) is trading below our estimate of fair value ($40.38)

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 (7.9x) compared to the Trade Distributors industry average (10.9x).

PE vs Market: GMS is good value based on its PE Ratio (7.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: GMS is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: GMS is good value based on its PB Ratio (0.9x) compared to the US Trade Distributors industry average (0.9x).


Next Steps

Future Growth

How is GMS forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMS's forecast earnings growth (14% per year) is above the savings rate (1.7%).

Earnings vs Market: GMS's earnings (14% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: GMS's revenue (1.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GMS's revenue (1.7% 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?

40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMS has high quality earnings.

Growing Profit Margin: GMS's current net profit margins (2.5%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: GMS has become profitable over the past 5 years, growing earnings by 40.7% per year.

Accelerating Growth: GMS's earnings growth over the past year (67%) exceeds its 5-year average (40.7% per year).

Earnings vs Industry: GMS earnings growth over the past year (67%) exceeded the Trade Distributors industry 5.1%.


Return on Equity

High ROE: GMS's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is GMS's financial position?


Financial Position Analysis

Short Term Liabilities: GMS's short term assets ($789.0M) exceed its short term liabilities ($350.5M).

Long Term Liabilities: GMS's short term assets ($789.0M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: GMS's debt to equity ratio (136%) is considered high.

Reducing Debt: GMS's debt to equity ratio has reduced from 184.5% to 136% over the past 5 years.

Debt Coverage: GMS's debt is well covered by operating cash flow (23.2%).

Interest Coverage: GMS's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: GMS has a high level of physical assets or inventory.

Debt Coverage by Assets: GMS's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is GMS's 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 payouts.

High Dividend: Unable to evaluate GMS's dividend yield against the top 25% of dividend payers, as the company has not reported any 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 (50yo)

0.58

Tenure

Mr. John C. Turner, Jr., has been President of GMS Inc. since May 1, 2019 and also serves as its Chief Executive Officer and Director since August 2, 2019. He joined GMS Inc. in 2019. He was the President  ...


Leadership Team

NamePositionTenureCompensationOwnership
A. Ross
VP of Finance3.5yrsUS$537.30k0.0097% $63.4k
Craig Apolinsky
VP, General Counsel & Corporate Secretary4.67yrsUS$1.11m0.024% $158.4k
John Turner
President0.58yrno data0.0078% $50.9k
Scott Deakin
VP & CFO0.42yrno datano data
Eric Sundby
Chief Information Officer & VP2.92yrsno datano data
Leslie Kratcoski
Vice President of Investor Relations1.25yrsno datano data
Michelle Leader
Marketing Directorno datano datano data
G. Hendren
Vice President of Corporate Development / M&Ano datano datano data
Elizabeth Spence
VP & Chief Human Resources Officer0.25yrno datano data
Don Taylor
Vice President of Operations - Western Regionno datano datano data

1.3yrs

Average Tenure

52yo

Average Age

Experienced Management: GMS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Turner
President0.58yrno data0.0078% $50.9k
John Gavin
Independent Non-Executive Chairman & Lead Independent Directorno dataUS$226.79k0.064% $421.7k
Peter Browning
Independent Director6.17yrsUS$200.00k0.028% $181.5k
J. Smith
Independent Director6.17yrsUS$215.00k0.040% $264.9k
Ronald Ross
Independent Director6.17yrsUS$195.00k0.85% $5.6m
Mitchell Lewis
Independent Director0.67yrno datano data
Brian Hoesterey
Director6.17yrsno datano data
Teri McClure
Independent Director0.92yrUS$105.00kno data
Theron Gilliam
Independent Director6.17yrsUS$192.50k0.033% $218.4k
Richard Mueller
Chairman Emeritusno dataUS$355.02kno data

6.2yrs

Average Tenure

60yo

Average Age

Experienced Board: GMS's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GMS insiders have bought more shares than they have sold 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 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$655.547m
  • Shares outstanding: 42.32m
  • Website: https://www.gms.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMSNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2016
CLGDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2016

Biography

GMS Inc. distributes wallboards, suspended ceilings systems, and 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, 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 wallboards, drywall, lumber, ceiling tiles, commercial, and residential building materials. As of April 30, 2019, it operated 254 branches across 43 states and the District of Columbia, as well as 5 provinces in Canada. The company also operates a network of approximately 250 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 03:59
End of Day Share Price2020/03/27 00:00
Earnings2020/01/31
Annual Earnings2019/04/30


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.