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Gibraltar Industries, Inc. (ROCK)
:ROCK
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Gibraltar Industries
(NASDAQ:ROCK)
73Outperform
Gibraltar Industries (ROCK) vs. S&P 500 (SPY)
Market Cap
$1.84B
Dividend YieldN/A
Average Volume (3M)357.64K
Price to Earnings (P/E)13.9
Beta (1Y)1.16
Revenue Growth-5.01%
EPS Growth24.50%
CountryUS
Employees2,097
SectorIndustrials
Sector Strength67
IndustryConstruction
Share Statistics
EPS (TTM)4.47
Shares Outstanding29,674,433
10 Day Avg. Volume379,288
30 Day Avg. Volume357,639
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)N/A
Price to Sales (P/S)1.41
Price to Cash Flow (P/CF)23.20
P/FCF Ratio21.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$90.00Price Target Upside45.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Gibraltar Industries Business Overview & Revenue Model
Company DescriptionGibraltar Industries, Inc. manufactures and distributes building products for the renewable energy, residential, agtech, and infrastructure markets in North America and Asia. It operates through four segments: Renewables, Residential, Agtech, and Infrastructure. The Renewables segment designs, engineers, manufactures, and installs solar racking and electrical balance of systems. The Residential segment offers roof and foundation ventilation products and accessories, such as solar powered units; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing products and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, rooftop safety kits, chimney caps, heat trace coils and exterior products, remote-controlled deck awnings for sun protection, and solar-powered ventilation products. The Agtech segment offers growing and processing solutions, including the designing, engineering, manufacturing, and installation of greenhouses; and botanical extraction systems. The Infrastructure segment offers expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems. It serves solar developers, institutional and commercial growers of food and plants, home improvement retailers, wholesalers, distributors, and contractors. Gibraltar Industries, Inc. was founded in 1972 and is headquartered in Buffalo, New York.
How the Company Makes MoneyGibraltar Industries generates revenue primarily through the sale of its diverse range of products across its operating segments. In the Renewable Energy & Conservation segment, the company earns money by providing solar racking systems and other related products that support solar energy projects. The Residential Products segment contributes to revenue through the manufacture and sale of building products such as ventilation systems, rain dispersion products, and postal storage solutions for residential applications. The Infrastructure Products segment generates income by supplying engineered products for infrastructure projects, including transportation and industrial applications. Gibraltar's revenue streams are bolstered by its focus on innovation, quality, and strategic partnerships across its served markets.
Gibraltar Industries Financial Statement Overview
Summary
Gibraltar Industries demonstrates strong profitability and efficient operations with a robust balance sheet characterized by low debt levels and high equity. However, challenges include declining revenue and free cash flow growth rates, which may affect future expansion.Income Statement
Gibraltar Industries shows consistent revenue generation with a slight decline from 2023 to 2024. The gross profit margin remains strong at 26.9% for 2024, indicating effective cost management. The net profit margin increased to 10.5% in 2024 from 8% in 2023, reflecting improved profitability. However, the revenue growth rate is negative, which could be a concern for future expansion. The EBIT and EBITDA margins are stable, showcasing operational efficiency.72
Positive
Balance Sheet
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The return on equity increased to 13.1% in 2024, suggesting efficient use of shareholder funds to generate profits. The equity ratio is robust at 74%, highlighting a strong financial foundation with significant equity funding.80
Positive
Cash Flow
Gibraltar Industries has a strong free cash flow of $154.3 million in 2024, though it decreased from 2023. The operating cash flow to net income ratio is 1.27, indicating good cash conversion from earnings. The free cash flow to net income ratio is 1.12, reflecting adequate free cash generation relative to net income. The free cash flow growth rate is negative, which might impact future investments.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.31B | 1.38B | 1.39B | 1.34B | 1.03B | Gross Profit |
| 351.83M | 361.97M | 318.69M | 290.01M | 256.34M | EBIT |
| 143.02M | 150.73M | 130.10M | 96.99M | 107.19M | EBITDA |
| 181.63M | 179.37M | 141.70M | 146.13M | 129.38M | Net Income Common Stockholders |
| 137.34M | 110.53M | 82.41M | 75.63M | 64.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 269.48M | 99.43M | 17.61M | 12.85M | 32.05M | Total Assets |
| 1.42B | 1.26B | 1.21B | 1.21B | 1.21B | Total Debt |
| 35.13M | 46.27M | 116.42M | 35.17M | 111.40M | Net Debt |
| -234.35M | -53.16M | 98.81M | 22.32M | 79.35M | Total Liabilities |
| 369.44M | 341.45M | 388.51M | 389.64M | 468.69M | Stockholders Equity |
| 1.05B | 915.00M | 822.10M | 825.26M | 743.80M |
| Cash Flow | Free Cash Flow | |||
| 154.33M | 204.57M | 82.63M | 5.37M | 76.04M | Operating Cash Flow |
| 174.26M | 218.48M | 102.69M | 23.07M | 89.10M | Investing Cash Flow |
| 8.54M | -15.72M | -71.68M | 24.54M | -326.71M | Financing Cash Flow |
| -12.19M | -120.33M | -25.01M | -66.61M | 79.46M |
Gibraltar Industries Technical Analysis
Negative
61.91
Price Trends
62.93
Negative
64.79
Negative
67.10
Negative
Market Momentum
-0.26
Positive
43.93
Neutral
30.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROCK, the sentiment is Negative. The current price of 61.91 is below the 20-day moving average (MA) of 64.53, below the 50-day MA of 62.93, and below the 200-day MA of 67.10, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 30.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROCK.
Gibraltar Industries Risk Analysis
Gibraltar Industries disclosed 22 risk factors in its most recent earnings report. Gibraltar Industries reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gibraltar Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.35B | 24.25 | 39.28% | 0.79% | 11.62% | 20.76% | |
75 Outperform | $15.43B | 19.11 | 32.60% | 1.11% | -1.76% | 176.01% | |
73 Outperform | $1.84B | 13.86 | 13.99% | ― | -5.01% | 24.50% | |
71 Outperform | $12.77B | 20.26 | 12.63% | 1.67% | 13.41% | -44.36% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% | |
60 Neutral | $14.93B | 18.75 | -118.61% | 1.68% | -1.74% | -6.91% | |
44 Neutral | $535.24M | ― | -25.51% | ― | -15.09% | -358.01% |
* Industrials Sector Average
Performance Comparison
ROCK
Gibraltar Industries
61.91
-18.62
-23.12%
AWI
Armstrong World
144.27
21.14
17.17%
CSL
Carlisle Companies
349.51
-38.63
-9.95%
MAS
Masco
70.46
-7.19
-9.26%
OC
Owens Corning
147.15
-17.10
-10.41%
JELD
JELD-WEN
6.27
-14.96
-70.47%
Gibraltar Industries Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 6.76% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook, with notable achievements in operational improvements and cash flow generation but also significant challenges in sales decline and market issues in the renewables and residential segments.Highlights
Improved Operating Income
Despite a 7.9% decrease in net sales in Q4 2024, operating income improved by 11%, and adjusted EPS increased by 17.4%.
Cash Flow Generation
For 2024, Gibraltar generated $174 million in operating cash flow and $154 million in free cash flow, representing 12% of net sales.
Positive Bookings Momentum
Renewables bookings are up 33%, and AgTech bookings are up over 300% year-to-date compared to the prior year.
Acquisition of Lane Supply
Gibraltar acquired Lane Supply for $120 million, adding $112 million in net sales and an adjusted EBITDA margin of 14.8%.
Strong Infrastructure Backlog
The infrastructure business's backlog increased by 10% entering 2025, driven by strong demand and order conversion.
Lowlights
Decline in Net Sales
Consolidated net sales were down 3.9% to $1.31 billion for the full year 2024, affected by market issues in the renewables segment.
Decline in Renewables Segment
Q4 2024 renewables adjusted net sales decreased by 18.8%, and backlog decreased by 32% due to regulatory challenges.
Residential Segment Challenges
Residential segment net sales decreased by 4.8% in Q4 2024 due to market softness and product line simplification initiatives.
Company Guidance
During the Gibraltar Industries Fourth Quarter 2024 Financial Results Conference Call, the company provided detailed guidance for 2025, projecting net sales between $1.4 and $1.45 billion, representing 8% to 12% growth. They anticipate an adjusted operating margin ranging from 13.9% to 14.2%, with a 110 to 140 basis point expansion. Adjusted EBITDA margin is expected to be between 16.7% and 17%, and adjusted EPS is projected to grow 13% to 19% to a range of $4.80 to $5.05. Free cash flow as a percentage of net sales is targeted at 10%. The guidance includes organic growth in residential, ag tech, and infrastructure segments, flat to down sales in renewables, and contributions from the recent acquisition of Lane Supply.Gibraltar Industries Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Gibraltar Industries Appoints Metcalf Amidst Strong Q3 Results
Positive
Oct 30, 2024
Gibraltar Industries has appointed James Metcalf to its Board of Directors, enhancing its governance and strategic oversight. The company reported third-quarter 2024 financial results with net sales of $361 million and strong operating cash flow of $65 million, despite challenges in the solar and residential markets. While sales in the Renewables segment were impacted by regulatory issues, Agtech experienced significant growth, and the company remains well-positioned to navigate current market disruptions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.