Gms Inc.
GMS
Wholesale-Lumber & Other Construction Materials
Mkt Cap
$2.691BPE
8.15Debt
$1.167BCash
$81.45MEV
$3.777BFCF
$397.5MP/E Ratio
8.15Debt
$1.167BCash
$81.45MEV
$3.777BFCF
$397.5MGMS Inc. distributes wallboard, ceilings, steel framing and complementary construction 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. In addition, the company distributes acoustical ceilings, steel framing, insulation, and related building products, as well as commercial and residential building materials. It serves professional contractors and homebuilders. As of April 30, 2022, the company operated 300 branches across 44 states and the District of Columbia, as well as 6 provinces in Canada. It also operates a network of approximately 300 distribution centers. GMS Inc. was founded in 1971 and is headquartered in Tucker, Georgia.
DCF
Discounted Cash Flow Valuation of Gms Inc.
Value
Growth
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Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $397.5M | $504.3M | $627.4M | $765.4M | $915.2M | $1.072B | $1.23B | $1.381B | $1.517B | $1.63B | $1.711B | $17.11B |
| DCF | $438.5M | $474.4M | $503.3M | $523.3M | $533M | $531.7M | $519.1M | $495.9M | $463.3M | $423M | $4.23B | |
| Value | $9.135B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 41%
Earnings Stability 46%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 04-2015 | 04-2016 | 04-2017 | 04-2018 | 04-2019 | 04-2020 | 04-2021 | 04-2022 | 04-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -0.74% | 0.68% | 2.1% | 2.5% | 1.8% | 0.72% | 3.2% | 5.9% | 6.2% | 6.1% |
| ROA | 1.6% | 4.7% | 7.5% | 8.2% | 6.8% | 4.3% | 7.7% | 13% | 15% | 15% |
| ROE | -3.9% | 4% | 9.5% | 11% | 8.7% | 3.7% | 13% | 26% | 26% | 24% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +3.39%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.96%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +9.34%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.7%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +14.64%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +3.9%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 04-2015 | 04-2016 | 04-2017 | 04-2018 | 04-2019 | 04-2020 | 04-2021 | 04-2022 | 04-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 16.98 | 11.05 | 9.59 | 6.86 | 4.17 | 8.39 | 8.96 | 2.98 | 2.94 |
| Debt Equity | - | 2.19 | 1.19 | 1.07 | 1.91 | 1.83 | 1.26 | 1.17 | 0.91 | 0.86 |
| MIN | ||||||||||
| Graham Stability | - | - | - | 100% | 100% | 42% | 100% | 100% | 100% | 42% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 2.94.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.64.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.42.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 04-2016 | 04-2018 | 04-2020 | 04-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 16% | 16% | 18% | 15% | 0.18% |
| Net Income | 60% | 40% | 140% | 22% | -6.3% |
| Stockholders Equity | 22% | 17% | 26% | 20% | -0.3% |
| FCF | 38% | 43% | 12% | 180% | 8.1% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +16.24%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.18%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +39.53%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -6.26%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +17.08%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -0.3%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +43.08%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +8.13%.