Is GMS Stock a Good Investment?
GMS Investment Advice | GMS |
- Examine GMS's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research GMS's leadership team and their track record. Good management can help GMS navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Trading Companies & Distributors space and any emerging trends that could impact GMS's business and its evolving consumer preferences.
- Compare GMS's performance and market position to its competitors. Analyze how GMS is positioned in terms of product offerings, innovation, and market share.
- Check if GMS pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about GMS's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in GMS Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if GMS Inc is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine GMS Stock
Researching GMS's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The book value of GMS was currently reported as 37.43. The company has Price/Earnings To Growth (PEG) ratio of 0.73. GMS Inc recorded earning per share (EPS) of 6.08. The entity had not issued any dividends in recent years.
To determine if GMS is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding GMS's research are outlined below:
| GMS Inc is unlikely to experience financial distress in the next 2 years | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from simplywall.st: GMS Might Have The Makings Of A Multi-Bagger |
GMS Quarterly Accounts Payable |
|
GMS uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in GMS Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to GMS's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of March 2024 Upcoming Quarterly Report | View | |
| 27th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 27th of June 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 30th of April 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact GMS's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises GMS's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-03-06 | 2018-01-31 | 0.4 | 0.36 | -0.04 | 10 | ||
2021-03-04 | 2021-01-31 | 0.51 | 0.6 | 0.09 | 17 | ||
2018-08-30 | 2018-07-31 | 0.73 | 0.82 | 0.09 | 12 | ||
2018-06-28 | 2018-04-30 | 0.65 | 0.56 | -0.09 | 13 | ||
2019-03-05 | 2019-01-31 | 0.52 | 0.41 | -0.11 | 21 | ||
2020-09-03 | 2020-07-31 | 0.81 | 0.94 | 0.13 | 16 | ||
2016-07-12 | 2016-04-30 | 0.36 | 0.53 | 0.17 | 47 | ||
2022-06-23 | 2022-04-30 | 1.88 | 2.09 | 0.21 | 11 |
Know GMS's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as GMS is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading GMS Inc backward and forwards among themselves. GMS's institutional investor refers to the entity that pools money to purchase GMS's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Coliseum Capital Management Llc | 2024-09-30 | 803.9 K | Capital World Investors | 2024-09-30 | 793.7 K | Westwood Holdings Group Inc | 2024-09-30 | 766.9 K | Lsv Asset Management | 2024-09-30 | 652.3 K | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 611.8 K | Charles Schwab Investment Management Inc | 2024-09-30 | 594.1 K | Reinhart Mahoney Capital Management Inc | 2024-09-30 | 529.4 K | Northern Trust Corp | 2024-09-30 | 509.2 K | Amvescap Plc. | 2024-06-30 | 417.6 K | Blackrock Inc | 2024-06-30 | 6.7 M | Vanguard Group Inc | 2024-09-30 | 5.3 M |
GMS's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 3.94 B.Market Cap |
|
GMS's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.11 | 0.12 | |
| Return On Capital Employed | 0.15 | 0.08 | |
| Return On Assets | 0.07 | 0.08 | |
| Return On Equity | 0.19 | 0.20 |
Determining GMS's profitability involves analyzing its financial statements and using various financial metrics to determine if GMS is a good buy. For example, gross profit margin measures GMS's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of GMS's profitability and make more informed investment decisions.
GMS's Earnings Breakdown by Geography
Please note, the imprecision that can be found in GMS's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of GMS Inc. Check GMS's Beneish M Score to see the likelihood of GMS's management manipulating its earnings.
Evaluate GMS's management efficiency
GMS Inc has Return on Asset of 0.0714 % which means that on every $100 spent on assets, it made $0.0714 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1745 %, implying that it generated $0.1745 on every 100 dollars invested. GMS's management efficiency ratios could be used to measure how well GMS manages its routine affairs as well as how well it operates its assets and liabilities. At this time, GMS's Return On Tangible Assets are comparatively stable compared to the past year. Return On Assets is likely to gain to 0.08 in 2024, whereas Return On Capital Employed is likely to drop 0.08 in 2024. At this time, GMS's Net Tangible Assets are comparatively stable compared to the past year. Other Current Assets is likely to gain to about 44.5 M in 2024, whereas Non Current Assets Total are likely to drop slightly above 1.3 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 36.31 | 38.12 | |
| Tangible Book Value Per Share | 2.59 | 2.72 | |
| Enterprise Value Over EBITDA | 8.69 | 10.60 | |
| Price Book Value Ratio | 2.55 | 2.37 | |
| Enterprise Value Multiple | 8.69 | 10.60 | |
| Price Fair Value | 2.55 | 2.37 | |
| Enterprise Value | 1.2 B | 1.1 B |
GMS Inc has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Beta 1.679 |
Basic technical analysis of GMS Stock
As of the 30th of November, GMS retains the risk adjusted performance of 0.0717, and Market Risk Adjusted Performance of 0.1184. GMS technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Please check out GMS Inc variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if GMS is priced correctly, providing market reflects its last-minute price of 100.35 per share. Given that GMS Inc has jensen alpha of (0.03), we strongly advise you to confirm GMS Inc's regular market performance to make sure the company can sustain itself at some point in the future.GMS's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific GMS insiders, such as employees or executives, is commonly permitted as long as it does not rely on GMS's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases GMS insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
GMS's Outstanding Corporate Bonds
GMS issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. GMS Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most GMS bonds can be classified according to their maturity, which is the date when GMS Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Garda World Security Corp BondUS36257BAA70 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Understand GMS's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing GMS's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0717 | |||
| Market Risk Adjusted Performance | 0.1184 | |||
| Mean Deviation | 1.4 | |||
| Semi Deviation | 1.87 | |||
| Downside Deviation | 2.05 | |||
| Coefficient Of Variation | 1163.57 | |||
| Standard Deviation | 1.91 | |||
| Variance | 3.63 | |||
| Information Ratio | 0.0137 | |||
| Jensen Alpha | (0.03) | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | 0.0128 | |||
| Treynor Ratio | 0.1084 | |||
| Maximum Drawdown | 8.96 | |||
| Value At Risk | (3.24) | |||
| Potential Upside | 2.62 | |||
| Downside Variance | 4.21 | |||
| Semi Variance | 3.51 | |||
| Expected Short fall | (1.44) | |||
| Skewness | (0.51) | |||
| Kurtosis | 2.32 |
| Risk Adjusted Performance | 0.0717 | |||
| Market Risk Adjusted Performance | 0.1184 | |||
| Mean Deviation | 1.4 | |||
| Semi Deviation | 1.87 | |||
| Downside Deviation | 2.05 | |||
| Coefficient Of Variation | 1163.57 | |||
| Standard Deviation | 1.91 | |||
| Variance | 3.63 | |||
| Information Ratio | 0.0137 | |||
| Jensen Alpha | (0.03) | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | 0.0128 | |||
| Treynor Ratio | 0.1084 | |||
| Maximum Drawdown | 8.96 | |||
| Value At Risk | (3.24) | |||
| Potential Upside | 2.62 | |||
| Downside Variance | 4.21 | |||
| Semi Variance | 3.51 | |||
| Expected Short fall | (1.44) | |||
| Skewness | (0.51) | |||
| Kurtosis | 2.32 |
Consider GMS's intraday indicators
GMS intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of GMS stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 4214.67 | |||
| Daily Balance Of Power | 0.089 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 100.77 | |||
| Day Typical Price | 100.63 | |||
| Price Action Indicator | (0.36) | |||
| Period Momentum Indicator | 0.13 |
GMS Corporate Filings
F4 | 12th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 24th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 7th of October 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
GMS Stock media impact
Far too much social signal, news, headlines, and media speculation about GMS that are available to investors today. That information is available publicly through GMS media outlets and privately through word of mouth or via GMS internal channels. However, regardless of the origin, that massive amount of GMS data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of GMS news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of GMS relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to GMS's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive GMS alpha.
GMS Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards GMS can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
GMS Corporate Directors
| Mitchell Lewis | Independent Director | Profile | |
| Theron Gilliam | Independent Director | Profile | |
| Teri McClure | Independent Director | Profile | |
| Peter Browning | Independent Director | Profile |
Additional Tools for GMS Stock Analysis
When running GMS's price analysis, check to measure GMS's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GMS is operating at the current time. Most of GMS's value examination focuses on studying past and present price action to predict the probability of GMS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GMS's price. Additionally, you may evaluate how the addition of GMS to your portfolios can decrease your overall portfolio volatility.