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:
Below please find a table outlining a discounted cash flow forecast for GMS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that GMS Inc ranked in the 88th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1428.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of GMS Inc, consider:
The company's balance sheet shows it gets 48% of its capital from equity, and 52% of its capital from debt. Notably, its equity weight is greater than merely 17.18% 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 80.35% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 52% of the company's capital (with equity being the remaining amount). Approximately 73.82% 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
Want more companies with a valuation profile/forecast similar to that of GMS Inc? See VALE, CF, USCR, PAAS, and RS.
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...