NYSE:GMS

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Executive Summary

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


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 +/- 8% a week.

Volatility Over Time: GMS's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-3.7%

GMS

-0.4%

US Trade Distributors

-0.5%

US Market


1 Year Return

4.6%

GMS

16.9%

US Trade Distributors

18.3%

US Market

Return vs Industry: GMS underperformed the US Trade Distributors industry which returned 18% over the past year.

Return vs Market: GMS underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

GMSIndustryMarket
7 Day-3.7%-0.4%-0.5%
30 Day30.7%12.5%3.6%
90 Day25.1%14.7%5.6%
1 Year4.6%4.6%19.2%16.9%21.0%18.3%
3 Year-6.5%-6.5%38.6%32.1%45.2%35.6%
5 Yearn/a81.8%68.6%89.8%68.8%

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

Valuation

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

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMS ($31.14) is trading below our estimate of fair value ($40.34)

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 (50.6x) compared to the US Trade Distributors industry average (22.7x).

PE vs Market: GMS is poor value based on its PE Ratio (50.6x) compared to the US market (19.2x).


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 (1.9x) 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 (21.9% 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

  • Explore strong past performing companies in the Capital Goods industry.

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 ($USD4.55M) is about average for companies of similar size in the US market ($USD4.24M).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
John Turner
President1.25yrsUS$4.55m0.044%
$ 609.0k
Scott Deakin
VP & CFO1.08yrsUS$1.28m0.0054%
$ 75.5k
Craig Apolinsky
VP, General Counsel & Corporate Secretary5.33yrsUS$1.27m0.039%
$ 544.4k
William Bell
Chief Accounting Officer0.17yrno datano data
Eric Sundby
Chief Information Officer & VP3.58yrsno datano data
Leslie Kratcoski
Vice President of Investor Relations1.92yrsno 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 Officer0.92yrno datano data
Don Taylor
Vice President of Operations - Western Regionno datano datano data
Thomas Dumay
Director of Risk Managementno datano datano 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

NamePositionTenureCompensationOwnership
John Turner
President1.25yrsUS$4.55m0.044%
$ 609.0k
Lisa Bachmann
Independent Director0.83yrUS$48.74kno data
John Gavin
Independent Non-Executive Chairman1.08yrsUS$295.00k0.075%
$ 1.0m
Peter Browning
Independent Director6.83yrsUS$200.00k0.039%
$ 537.3k
J. Smith
Independent Director6.83yrsUS$216.25k0.051%
$ 712.4k
Mitchell Lewis
Independent Director1.33yrsUS$172.50k0.011%
$ 156.0k
Teri McClure
Independent Director1.58yrsUS$87.50k0.014%
$ 191.1k
Theron Gilliam
Independent Director6.83yrsUS$192.50k0.044%
$ 614.8k
Randolph Melville
Independent Directorno datano datano 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$1.391b
  • 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:36
End of Day Share Price2020/11/23 00:00
Earnings2020/07/31
Annual Earnings2020/04/30


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.