GMS Inc. (NYSE:GMS) shares fell to a low of $42.22 before closing at $42.30. Intraday shares traded counted 0.33 million, which was -35.44% lower than its 30-day average trading volume of 246.46K. GMS’s previous close was $43.58 while the outstanding shares total 42.73M. The firm has a beta of 2.10, a 12-month trailing P/E ratio of 61.13, and a growth ratio of 4.89. The stock’s Relative Strength Index (RSI) is 36.82, with weekly volatility at 2.92% and ATR at 1.35. The GMS stock’s 52-week price range has touched low of $21.00 and a $47.11 high. The stock traded lower over the last trading session, losing -2.94% on 06/10/21.
Investors have identified the Building Products & Equipment company GMS Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.81 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
GMS Inc. (GMS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For GMS, the company has in raw cash 150.57 million on their books with 51.55 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 906.11 million total, with 380.2 million as their total liabilities.
GMS were able to record 50.64 million as free cash flow during the 09/02/2021 quarter of the year, this saw their quarterly net cash flow reduce by -60.34 million. In cash movements, the company had a total of 68.5 million as operating cash flow.
Potential earnings growth for GMS Inc. (GMS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/02/2021 quarter of the year, GMS Inc. recorded a total of 751.19 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -1.35% coming in sequential stages and their sales for the 09/02/2021 quarter reducing by -8.21%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 507.87 million trying to sell their products during the last quarter, with the result yielding a gross income of 243.32 million. This allows shareholders to hold on to 42.73M with the recently reported earning now reading 0.38 cents per share. This is a figure that compared to analyst’s prediction for their 09/02/2021 (0.60 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.91 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GMS sounds very interesting.
Is the stock of GMS attractive?
In related news, 10% Owner, Coliseum Capital Management, L bought 46,210 shares of the company’s stock in a transaction that recorded on Apr 15. The purchase was performed at an average price of 44.03, for a total value of 2,034,626. As the purchase deal closes, the 10% Owner, Coliseum Capital Management, L now bought 25,000 shares of the company’s stock, valued at 1,088,250. Also, 10% Owner, Coliseum Capital Management, L bought 50,000 shares of the company’s stock in a deal that was recorded on Apr 13. The shares were cost at an average price of 42.80 per share, with a total market value of 2,140,000. Following this completion of disposal, the 10% Owner, Coliseum Capital Management, L now holds 35,000 shares of the company’s stock, valued at 1,436,050. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
1 out of 7 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on GMS Inc.. 0 analysts has assigned a Sell rating on the GMS stock. The 12-month mean consensus price target for the company’s shares has been set at $43.80.