GMS (GMS) AI Stock Analysis

• Market Cap: $3.70B
• Dividend Yield: N/A
• Average Volume (3M): 705.75K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.87
• Revenue Growth: 0.22%
• EPS Growth: -57.02%
• Country: US
• Employees: 7,624
• Sector: Industrials
• Sector Strength: 88
• Industry: Construction
• EPS (TTM): 1.29
• Shares Outstanding: 38,059,080
• 10 Day Avg. Volume: 1,527,361
• 30 Day Avg. Volume: 705,745
• PEG Ratio: 0.29
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.26
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 2.07
• Enterprise Value/Ebitda: 1.68
• 1Y Price Target: $105.00
• Price Target Upside: -3.46% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $119.00 ▲(9.42%Upside)

GMS's overall score is driven by a strong technical outlook and positive corporate events, offset by valuation concerns and mixed financial performance. The merger with Home Depot presents a significant growth opportunity, but declining profitability and challenging market conditions weigh on the overall assessment.

Positive Factors

Merger and Acquisition Interest

The Home Depot has submitted an offer, indicating interest from major players in the industry.

Revenue Growth Potential

A QXO acquisition of GMS would further QXO's stated goal of $50 billion in revenue.

Negative Factors

Lack of Formal Recommendations

GMS has yet to provide a formal recommendation to shareholders related to QXO’s bid, creating uncertainty.

Uncertainty in Offer Details

Details around HD's competing offer remain uncertain, adding risk to the stock's outlook.

GMS Business Overview & Revenue Model

Company Description

GMS 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.

How the Company Makes Money

GMS Inc. generates revenue by selling a wide range of building products to customers in the construction industry. The company operates a large distribution network, enabling efficient delivery of products and materials to construction sites. Revenue streams include the sale of wallboard, ceilings, steel framing, and insulation, among other products. Additionally, GMS benefits from partnerships with manufacturers and suppliers, allowing it to offer competitive pricing and maintain a diverse product portfolio. The company's focus on customer service, inventory management, and logistical efficiency further contributes to its profitability.

GMS Financial Statement Overview

Summary

GMS shows strong revenue growth and a stable equity base, which are positive indicators of financial health. However, challenges in profitability margins and potential risks associated with increasing liabilities and cash flow volatility need addressing. The company's ability to manage these aspects will be crucial for sustaining growth and improving financial stability going forward.

Income Statement

GMS has shown a consistent revenue growth trend over the years, with a notable increase in total revenue from $3.3 billion in 2021 to $5.6 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin has remained relatively stable, indicating effective cost management. However, there is a decreasing trend in net income, which affects the net profit margin. The EBIT and EBITDA margins have also seen a decline, suggesting potential operational challenges. Continued revenue growth is a positive indicator, but profitability margins need attention.

Balance Sheet

The balance sheet shows a strong equity base, with stockholders' equity growing from $822 million in 2021 to $1,393 million in TTM 2025, reflecting a solid financial foundation. The debt-to-equity ratio has improved, indicating reduced leverage, but total liabilities have grown, which poses a risk. The equity ratio remains healthy, showcasing a stable financial position. However, the return on equity has decreased, suggesting that the earnings generated from shareholders' equity have not kept pace with equity growth.

Cash Flow

GMS exhibits a robust operating cash flow, maintaining a positive trend over the years. The free cash flow is also strong, with a solid free cash flow to net income ratio, indicating efficient cash generation relative to net income. However, fluctuations in free cash flow growth rates suggest potential volatility in future cash flows. The operating cash flow to net income ratio is favorable, highlighting effective cash management, but the investing cash flow indicates significant expenditures, which could impact future liquidity.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.59B	5.50B	5.33B	4.63B	3.30B	3.24B
Gross Profit	1.72B	1.78B	1.73B	1.49B	1.06B	1.06B
EBITDA	458.52M	582.99M	640.25M	542.15M	299.86M	281.91M
Net Income	145.76M	276.08M	332.99M	273.44M	105.56M	23.38M
Balance Sheet
Total Assets	3.79B	3.76B	3.27B	3.10B	2.48B	2.29B
Cash, Cash Equivalents and Short-Term Investments	59.03M	166.15M	164.75M	101.92M	167.01M	210.91M
Total Debt	1.74B	1.53B	1.29B	1.33B	1.10B	1.22B
Total Liabilities	2.40B	2.30B	1.99B	2.04B	1.66B	1.65B
Stockholders Equity	1.39B	1.46B	1.27B	1.06B	822.46M	633.98M
Cash Flow
Free Cash Flow	339.42M	376.00M	389.06M	138.53M	123.43M	277.89M
Operating Cash Flow	391.03M	433.25M	441.74M	179.61M	153.30M	303.08M
Investing Cash Flow	-565.33M	-430.77M	-111.47M	-387.21M	-63.59M	-47.10M
Financing Cash Flow	146.30M	-437.00K	-265.61M	143.28M	-136.62M	-91.33M

GMS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMS, the sentiment is Positive. The current price of 108.76 is above the 20-day moving average (MA) of 87.18, above the 50-day MA of 79.47, and above the 200-day MA of 84.32, indicating a bullish trend. The MACD of 7.77 indicates Negative momentum. The RSI at 80.12 is Negative, neither overbought nor oversold. The STOCH value of 91.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GMS.

GMS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROCK	77 Outperform	$1.79B	13.57	13.70%	―	-5.13%	16.93%
JBI	75 Outperform	$1.14B	23.30	9.51%	―	-13.95%	-63.37%
BECN	72 Outperform	$7.72B	25.25	16.54%	―	4.93%	―
BLDR	72 Outperform	$12.93B	14.98	19.62%	―	-5.49%	-33.51%
Sector *	71 Outperform	¥255.26B	12.93	8.49%	3.09%	6.31%	12.94%
GMS	68 Neutral	$3.70B	37.62	8.02%	―	0.22%	-57.02%
BXC	68 Neutral	$595.73M	16.56	5.96%	―	-4.22%	-16.01%

GMS Corporate Events

GMS Announces Merger Agreement with Home Depot

On June 29, 2025, GMS Inc. entered into a merger agreement with The Home Depot and its subsidiary, SRS Distribution, to be acquired for $110 per share, valuing the deal at approximately $5.5 billion. This acquisition is expected to enhance GMS’s offerings and market reach, benefiting shareholders, customers, and employees by expanding product and service options. The merger is anticipated to close by January 31, 2026, pending regulatory approvals and other customary conditions.

The most recent analyst rating on (GMS) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on GMS stock, see the GMS Stock Forecast page.

GMS Receives Acquisition Proposal from QXO, Inc.

On June 19, 2025, GMS Inc., a leading distributor of specialty building products in North America, announced it received an unsolicited acquisition proposal from QXO, Inc. to purchase all outstanding shares at $95.20 per share in cash. The GMS Board of Directors, with guidance from independent legal and financial advisors, will review the proposal to determine the best course of action for the company and its shareholders. No immediate action is required from shareholders, and the company will not comment further until the review is complete.

The most recent analyst rating on (GMS) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on GMS stock, see the GMS Stock Forecast page.

GMS Reports Q4 FY2025 Financial Results

GMS reported its Q4 and full-year FY2025 financial results, highlighting a slight growth in net sales driven by strategic acquisitions and strong cash flow generation despite challenging market conditions. The company implemented significant cost reductions and maintained resilient pricing in key product categories such as Wallboard and Ceilings, although Steel Framing prices were pressured. The company also repurchased shares and maintained substantial liquidity, positioning itself for continued strategic execution.

The most recent analyst rating on (GMS) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on GMS stock, see the GMS Stock Forecast page.