GMS Inc. distributes gypsum wallboard, acoustical ceiling products, and other specialty building materials to the interior contractors of commercial and residential buildings in North America. The company was founded in 1971 and is based Tucker, Georgia.
GMS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for GMS Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that GMS Inc ranked in the 87th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1725.83%. In terms of the factors that were most noteworthy in this DCF analysis for GMS, they are:
The company's balance sheet shows it gets 45% of its capital from equity, and 55% of its capital from debt. Notably, its equity weight is greater than just 17.87% of US equities in the Basic Materials sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 4.15 years comes in at 0.51%; that's greater than 80.48% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 55% of the company's capital (with equity being the remaining amount). Approximately 74.73% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HDSN, BECN, RS, ITP, and VALE can be thought of as valuation peers to GMS, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
GMS Inc. (NYSE:GMS), a leading North American specialty distributor of interior building products, is scheduled to present at the RBC Capital Markets Global Industrials Virtual Conference on Tuesday, September 15, 2020, at 11:20 AM Eastern Time.
GMS ([[GMS]] -7.8%) report FQ1 net sales of $802.6M (-5.3% Y/Y), organic sales also declined 5.7%.Sales breakup: Wallboard sales of $328.0 million decreased 4%, Ceilings sales of $113.7 million decreased 11.9%, Steel framing sales of $110.5 million decreased 16.2%, Other product sales of $250.4 million increased 2.3%.Gross margin of 32.5%...
GMS (NYSE:GMS) is scheduled to announce Q1 earnings results on Thursday, September 3rd, before market open.The consensus EPS Estimate is $0.81 (-9.0% Y/Y) and the consensus Revenue Estimate is $816.4M (-3.6% Y/Y).Over the last 2 years, GMS has beaten EPS estimates 63% of the time and has beaten revenue estimates...