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GMS

NYSE:GMS
Snowflake Description

Undervalued with proven track record.

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

GMS Inc. distributes wallboards, suspended ceilings systems, and building products in the United States and Canada. The last earnings update was 103 days ago. More info.


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GMS Share Price and Events
7 Day Returns
-3.8%
NYSE:GMS
1.4%
US Trade Distributors
0.3%
US Market
1 Year Returns
81.3%
NYSE:GMS
21.7%
US Trade Distributors
18.5%
US Market
GMS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GMS (GMS) -3.8% -7.9% 2.8% 81.3% 4% -
US Trade Distributors 1.4% -1.1% 11.5% 21.7% 22.8% 34.9%
US Market 0.3% 1.5% 5.7% 18.5% 36.4% 52.5%
1 Year Return vs Industry and Market
  • GMS outperformed the Trade Distributors industry which returned 21.7% over the past year.
  • GMS outperformed the Market in United States of America which returned 18.5% 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 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

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 1.7%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.936 (1 + (1- 21%) (108.64%))
1.496
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.5
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.496 * 5.44%)
9.88%

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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:GMS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.88%)
2020 141.65 Analyst x4 128.92
2021 163.13 Analyst x4 135.12
2022 184.10 Analyst x2 138.78
2023 184.00 Analyst x1 126.24
2024 193.00 Analyst x1 120.51
2025 199.93 Est @ 3.59% 113.62
2026 206.00 Est @ 3.04% 106.54
2027 211.45 Est @ 2.65% 99.53
2028 216.47 Est @ 2.37% 92.74
2029 221.20 Est @ 2.18% 86.24
Present value of next 10 years cash flows $1,148.00
NYSE:GMS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $221.20 × (1 + 1.74%) ÷ (9.88% – 1.74%)
$2,765.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,765.85 ÷ (1 + 9.88%)10
$1,078.39
NYSE:GMS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,148.00 + $1,078.39
$2,226.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,226.39 / 42.17
$52.8
NYSE:GMS Discount to Share Price
Calculation Result
Value per share (USD) From above. $52.80
Current discount Discount to share price of $28.17
= -1 x ($28.17 - $52.80) / $52.80
46.6%

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
47%
Share price is $28.17 vs Future cash flow value of $52.8
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 (2019-07-31) in USD $1.73
NYSE:GMS Share Price ** NYSE (2019-12-09) in USD $28.17
United States of America Trade Distributors Industry PE Ratio Median Figure of 41 Publicly-Listed Trade Distributors Companies 16.8x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.48x

* 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)

= 28.17 ÷ 1.73

16.31x

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 16.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
18.6%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 1.06x
United States of America Market PEG Ratio Median Figure of 2,045 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

= 16.31x ÷ 18.6%

0.88x

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 (2019-07-31) in USD $15.92
NYSE:GMS Share Price * NYSE (2019-12-09) in USD $28.17
United States of America Trade Distributors Industry PB Ratio Median Figure of 51 Publicly-Listed Trade Distributors Companies 1.69x
United States of America Market PB Ratio Median Figure of 5,088 Publicly-Listed Companies 1.78x
NYSE:GMS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 28.17 ÷ 15.92

1.77x

* Primary Listing of GMS.

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

  • GMS is overvalued 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 5/6, 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 8 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
18.6%
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 1.7%.
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 8 Analysts 18.6%
NYSE:GMS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 3.7%
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 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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 (4 months ago) See Below
Future Estimates Average of up to 8 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
2024-04-30 3,785 213 178 1
2023-04-30 3,624 204 150 1
2022-04-30 3,579 204 128 3
2021-04-30 3,402 187 105 8
2020-04-30 3,281 170 86 8
2019-12-10
NYSE:GMS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-07-31 3,185 229 71
2019-04-30 3,116 194 55
2019-01-31 2,972 130 48
2018-10-31 2,833 105 62
2018-07-31 2,647 35 56
2018-04-30 2,511 91 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 68 49
2017-01-31 2,231 66 44
2016-10-31 2,089 51 33

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GMS's earnings are expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).
  • GMS's revenue is expected to grow by 3.7% 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 (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from GMS Company Filings, last reported 4 months 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
2024-04-30 3.86 3.86 3.86 1.00
2023-04-30 3.33 3.33 3.33 1.00
2022-04-30 2.97 3.04 2.90 2.00
2021-04-30 2.46 2.70 2.10 4.00
2020-04-30 2.02 2.17 1.90 4.00
2019-12-10
NYSE:GMS Past Financials Data
Date (Data in USD Millions) EPS *
2019-07-31 1.73
2019-04-30 1.33
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

*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.
  • Unable to establish if GMS will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
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 2/6, 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 less than its 5-year average (25.8% vs 46.2%)
  • GMS's earnings growth has exceeded the US Trade Distributors industry average in the past year (25.8% vs -8.5%).
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 4 months 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
2019-07-31 3,185.06 70.63 742.87
2019-04-30 3,116.03 54.62 725.84
2019-01-31 2,971.68 48.32 695.50
2018-10-31 2,833.29 62.35 674.81
2018-07-31 2,647.46 56.12 650.28
2018-04-30 2,511.47 62.97 630.51
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 more 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 4/6, 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 0.8x 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 4 months ago.

NYSE:GMS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-07-31 662.30 1,060.51 24.12
2019-04-30 629.18 1,031.91 47.34
2019-01-31 633.76 1,128.36 74.35
2018-10-31 641.26 1,145.05 52.88
2018-07-31 619.28 1,209.95 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 (160.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (181.5% vs 160.1% today).
  • Debt is well covered by operating cash flow (21.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x 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 3/6, 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 8 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1959 Stocks 2.3%
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 3.7%

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
2024-04-30
2023-04-30
2022-04-30
2021-04-30
2020-04-30
2019-12-10

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
John Turner
AGE 50
TENURE AS CEO 0.3 years
CEO Bio

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 of Dal-Tile at Mohawk Industries, Inc. since January 2012 until May 1, 2019. Mr. Turner served as Senior Vice President of Daltile SBU and served as its Executive Vice President. He served as President of Dal-Tile International, Inc. He served as Senior Vice President of Dal SBU at Dal-Tile International, Inc. since July 2000. Mr. Turner served as the Chief Operating Officer of Dal-Tile Business Unit at Mohawk Industries Inc., since 2011 until 2012, Senior Vice President of Operations from 2008 to 2011 and Senior Vice President of Sales from 2005 to 2008. Mr. Turner served as Vice President of Distribution and Customer Service of Dal-Tile International Inc., since July 2000. He has been with Dal-Tile International Inc., since June 1990. Until July 2000, Mr. Turner served as Dal SBU General Manager of SSC Operations, HCS General Manager of Operations, HCS National Account Manager, SSC Manager and as an Architectural Representative. From 2005 to 2008, Mr. Turner served as Senior Vice President of Sales for the Store Channel. Prior to 2005, he held a variety of roles in operations, logistics and supply chain and customer service. Mr. Turner holds a Bachelor of Science degree in marketing and finance from the University of Southern California.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • Insufficient data for John to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

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

2.7
Average Tenure
52
Average Age
  • The tenure for the GMS management team is about average.
Management Team

Richard Adams

TITLE
Senior Vice President of Operations
COMPENSATION
$1M
AGE
59
TENURE
3 yrs

A. Ross

TITLE
Chief Accounting Officer & Corporate Controller
COMPENSATION
$537K
AGE
52
TENURE
3.3 yrs

Craig Apolinsky

TITLE
VP, General Counsel & Corporate Secretary
COMPENSATION
$1M
AGE
52
TENURE
4.4 yrs

John Turner

TITLE
President
AGE
50
TENURE
0.3 yrs

Scott Deakin

TITLE
VP & CFO
AGE
53
TENURE
0.2 yrs

Eric Sundby

TITLE
Chief Information Officer & VP
TENURE
2.7 yrs

Leslie Kratcoski

TITLE
Vice President of Investor Relations
TENURE
1 yrs

Michelle Leader

TITLE
Marketing Director

G. Hendren

TITLE
Vice President of Corporate Development / M&A

Don Taylor

TITLE
Vice President of Operations - Western Region
Board of Directors Tenure

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

5.9
Average Tenure
59
Average Age
  • The tenure for the GMS board of directors is about average.
Board of Directors

Richard Mueller

TITLE
Chairman of the Board
COMPENSATION
$355K
AGE
77
TENURE
4.6 yrs

John Turner

TITLE
President
AGE
50
TENURE
0.3 yrs

J. Sharpe

TITLE
Director
AGE
45
TENURE
5.9 yrs

Peter Browning

TITLE
Independent Director
COMPENSATION
$200K
AGE
78
TENURE
5.9 yrs

Jack Gavin

TITLE
Lead Independent Director
COMPENSATION
$227K
AGE
63

J. Smith

TITLE
Independent Director
COMPENSATION
$215K
AGE
70
TENURE
5.9 yrs

Tig Gilliam

TITLE
Independent Director
COMPENSATION
$193K
AGE
55
TENURE
5.9 yrs

Ronald Ross

TITLE
Independent Director
COMPENSATION
$195K
AGE
66
TENURE
5.9 yrs

Teri McClure

TITLE
Independent Director
COMPENSATION
$105K
AGE
55
TENURE
0.7 yrs

Brian Hoesterey

TITLE
Director
AGE
51
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • GMS individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Oct 19 Sell Ronald Ross Individual 08. Oct 19 08. Oct 19 -4,101 $27.78 $-113,924
10. Sep 19 Sell AEA Investors LP Company 09. Sep 19 09. Sep 19 -6,825,058 $26.93 $-183,798,812
08. Jul 19 Sell G. Callahan Individual 03. Jul 19 03. Jul 19 -28,950 $22.61 $-654,617
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
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

An Intrinsic Calculation For GMS Inc. (NYSE:GMS) Suggests It's 41% Undervalued

(NYSE:GMS) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $153.9m $173.4m $186.5m $186.0m $195.0m $201.3m $207.5m $213.7m $219.9m $226.2m Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x2 Analyst x1 Analyst x1 Est @ 3.24% Est @ 3.09% Est @ 2.98% Est @ 2.91% Est @ 2.85% Present Value ($, Millions) Discounted @ 11.13% $138.5 $140.4 $135.9 $121.9 $115.0 $106.9 $99.1 $91.9 $85.1 $78.7 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $1.1b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$226m × (1 + 2.7%) ÷ (11.1% – 2.7%) = US$2.8b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$2.8b ÷ ( 1 + 11.1%)10 = $962.28m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $2.08b.

Simply Wall St -

What Is GMS's (NYSE:GMS) P/E Ratio After Its Share Price Rocketed?

One way to gauge market expectations of a stock is to look at its Price to Earnings Ratio (PE Ratio). … A high P/E ratio means that investors have a high expectation about future growth, while a low P/E ratio means they have low expectations about future growth. … How Growth Rates Impact P/E Ratios P/E ratios primarily reflect market expectations around earnings growth rates.

Simply Wall St -

Have Insiders Been Buying GMS Inc. (NYSE:GMS) Shares This Year?

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for GMS GMS Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider purchase was by Director Ronald Ross for US$1.6m worth of shares, at about US$16.02 per share. … You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. … For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.

Simply Wall St -

Is GMS Inc.’s (NYSE:GMS) Return On Capital Employed Any Good?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for GMS: 0.092 = US$165m ÷ (US$2.1b - US$359m) (Based on the trailing twelve months to April 2019.) Therefore, GMS has an ROCE of 9.2%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

What Did GMS Inc.'s (NYSE:GMS) CEO Take Home Last Year?

Check out our latest analysis for GMS How Does Mike Callahan's Compensation Compare With Similar Sized Companies? … Most shareholders would consider it a positive that Mike Callahan takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. … So while we don't think, Mike Callahan is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

Simply Wall St -

Should You Be Worried About GMS Inc.'s (NYSE:GMS) 8.9% Return On Equity?

One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.089 in profit. … In my book the highest quality companies have high return on equity, despite low debt. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Read This Before You Buy GMS Inc. (NYSE:GMS) Because Of Its P/E Ratio

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for GMS: P/E of 15.41 = $18.15 ÷ $1.18 (Based on the year to January 2019.) Is A High Price-to-Earnings Ratio Good? … And as that P/E ratio drops, the company will look cheap, unless its share price increases. … How Does GMS's P/E Ratio Compare To Its Peers?

Simply Wall St -

Did Changing Sentiment Drive GMS's (NYSE:GMS) Share Price Down By 38%?

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … NYSE:GMS Past and Future Earnings, May 23rd 2019 We like that insiders have been buying shares in the last twelve months. … Shareholders have lost 6.0% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges.

Simply Wall St -

How Much Are GMS Inc. (NYSE:GMS) Insiders Spending On Buying Shares?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in GMS Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'.

Simply Wall St -

Can GMS Inc. (NYSE:GMS) Improve Its Returns?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.078 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

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.

Details
Name: GMS Inc.
GMS
Exchange: NYSE
Founded: 1971
$1,187,907,068
42,169,225
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
5,858
GMS employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/10 00:28
End of day share price update: 2019/12/09 00:00
Last estimates confirmation: 2019/12/09
Last earnings filing: 2019/08/29
Last earnings reported: 2019/07/31
Last annual earnings reported: 2019/04/30


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.