Gibraltar Industries (ROCK) AI Stock Analysis

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Gibraltar Industries

(NASDAQ:ROCK)

Rating:77Outperform

Price Target:

$68.00

▲(18.84%Upside)

Gibraltar Industries receives a strong overall score due to its robust financial performance and positive earnings call sentiment. The company's valuation is attractive, and it shows moderate technical strength despite mixed trends. The reaffirmation of growth targets and strategic expansions underline its solid market position.

Gibraltar Industries (ROCK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.73B

Dividend YieldN/A

Average Volume (3M)293.44K

Price to Earnings (P/E)13.5

Beta (1Y)1.18

Revenue Growth-5.13%

EPS Growth16.93%

CountryUS

Employees2,097

SectorIndustrials

Sector Strength95

IndustryConstruction

Share Statistics

EPS (TTM)0.95

Shares Outstanding29,490,360

10 Day Avg. Volume233,713

30 Day Avg. Volume293,440

Financial Highlights & Ratios

PEG Ratio-4.98

Price to Book (P/B)1.76

Price to Sales (P/S)0.00

P/FCF Ratio16.03

Enterprise Value/Market Cap1.01

Enterprise Value/Revenue0.33

Enterprise Value/Gross Profit5.01

Enterprise Value/Ebitda2.34

Forecast

1Y Price Target

$79.00

Price Target Upside38.06% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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 through the sale of its diverse range of products and services tailored to the renewable energy, residential, and infrastructure markets. Key revenue streams include the manufacture and sale of solar racking and electrical balance of systems solutions for solar energy projects, as well as mail and package solutions and ventilation products for residential buildings. The company also provides engineered products for infrastructure development, such as road and bridge projects. Significant partnerships with solar energy developers and residential construction companies, along with strategic acquisitions, contribute to its earnings by expanding its market reach and capability to offer comprehensive solutions.

Gibraltar Industries Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 8.31%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced view with significant achievements in backlog and Agtech bookings, alongside challenges in the Renewables segment and potential tariff impacts. Strong cash flow and a new share repurchase program contributed positively, while decreased sales in certain segments were concerning.

Q1-2025 Updates

Positive Updates

Solid Margin Performance

EPS improved by 19% due to solid margin performance in Residential, Agtech, and Infrastructure businesses, which offset challenges in the Renewables business.

Record Backlog

Consolidated backlog increased by 30% to $434 million, reaching a record level for Gibraltar Industries.

Agtech Bookings Surge

Year-over-year Agtech bookings increased by 226%, reflecting strong demand in produce and structures markets.

Residential Business Expansion

The Lane Supply acquisition and two other transactions expanded Gibraltar's presence in the residential and light commercial metal roofing market.

Strong Cash Flow Generation

Gibraltar Industries generated $14 million in operating cash flow and $2 million in free cash flow, with a continued strong balance sheet and debt-free status.

New Share Repurchase Program

A new three-year $200 million share repurchase program was approved, aiming to return value to shareholders.

Negative Updates

Renewables Segment Challenges

Renewables adjusted net sales decreased by 15.1% with backlog down 23% due to industry uncertainty and inefficiencies related to new technology launches.

Decreased Residential Sales

Net sales for the Residential segment decreased by 1.3%, driven by lower retail store traffic and soft end market point-of-sale activity.

Infrastructure Sales Decline

Infrastructure net sales decreased by 2.7% due to project delays, although demand remains strong.

Potential Tariff Impacts

Concerns about potential 20% to 30% tariffs impacting markets, products, and input costs, although mitigation strategies are in place.

Company Guidance

During the call, Gibraltar Industries provided guidance that reaffirmed their full-year outlook for 2025, which remains unchanged from previous guidance. The company expects net sales to range between $1.4 billion and $1.45 billion, reflecting growth of 8% to 12%. Adjusted operating margin is projected to expand by 110 to 140 basis points, ranging from 13.9% to 14.2%, while adjusted EBITDA margin is expected to range between 16.7% and 17%, expanding by 100 to 130 basis points. The company anticipates GAAP EPS to be in the range of $4.25 to $4.50, and adjusted EPS to grow by 13% to 19%, reaching between $4.80 and $5.05. Free cash flow as a percentage of net sales is projected to reach 10%. The reaffirmation is supported by strong order backlog, participation gains in the Residential segment, anticipated contributions from recent acquisitions, and well-established plans to mitigate potential tariff impacts.

Gibraltar Industries Financial Statement Overview

Summary

Gibraltar Industries demonstrates strong financial health, characterized by stable profitability, effective leverage management, and robust cash flow generation. Despite a slight decline in revenue, the company maintains strong margins and a solid balance sheet. The cash flow statements support a healthy financial position, ensuring resilience in the construction industry.

Income Statement

Positive

Gibraltar Industries shows steady profitability with a gross profit margin of 26.75% and a net profit margin of 10.22% for TTM (Trailing-Twelve-Months). While the revenue growth rate has been slightly negative at -0.19%, the company maintains a healthy EBIT margin of 10.83% and an EBITDA margin of 13.27%. These figures highlight strong operational efficiency despite the slight dip in revenue.

Balance Sheet

Positive

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05, indicating conservative leverage. Return on Equity (ROE) is robust at 13.23%, reflecting effective utilization of shareholder funds. The equity ratio of 70.33% underscores financial stability, showcasing a solid asset base supported by equity.

Cash Flow

Positive

Operating cash flow is strong with an operating cash flow to net income ratio of 1.01, indicating efficient cash generation relative to net income. Although free cash flow decreased by -30.17%, the free cash flow to net income ratio remains strong at 0.81, demonstrating solid cash flow management.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.31B	1.31B	1.38B	1.39B	1.34B	1.03B
	Gross Profit
349.31M	351.83M	361.97M	318.69M	290.01M	256.34M
	EBIT
141.41M	143.02M	150.73M	130.10M	96.99M	107.19M
	EBITDA
182.44M	201.24M	179.37M	141.70M	146.13M	129.38M
	Net Income Common Stockholders
133.51M	137.34M	110.53M	82.41M	75.63M	64.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.11M	269.48M	99.43M	17.61M	12.85M	32.05M
	Total Assets
1.44B	1.42B	1.26B	1.21B	1.21B	1.21B
	Total Debt
46.32M	46.60M	46.27M	116.42M	35.17M	111.40M
	Net Debt
21.20M	-222.88M	-53.16M	98.81M	22.32M	79.35M
	Total Liabilities
425.84M	371.38M	341.45M	388.51M	389.64M	468.69M
	Stockholders Equity
1.01B	1.05B	915.00M	822.10M	825.26M	743.80M
Cash Flow		Free Cash Flow
107.77M	154.33M	204.57M	82.63M	5.37M	76.04M
	Operating Cash Flow
134.77M	174.26M	218.48M	102.69M	23.07M	89.10M
	Investing Cash Flow
-182.75M	8.54M	-15.72M	-71.68M	24.54M	-326.71M
	Financing Cash Flow
-73.15M	-12.19M	-120.33M	-25.01M	-66.61M	79.46M

Gibraltar Industries Technical Analysis

Technical Analysis Sentiment

Negative

Last Price57.22

Price Trends

50DMA

57.08

Positive

100DMA

59.81

Negative

200DMA

63.83

Negative

Market Momentum

MACD

0.52

Positive

RSI

44.70

Neutral

STOCH

19.04

Positive

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 57.22 is below the 20-day moving average (MA) of 59.71, above the 50-day MA of 57.08, and below the 200-day MA of 63.83, indicating a neutral trend. The MACD of 0.52 indicates Positive momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 19.04 is Positive, 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 3 New Risks

The Company is subject to the risk of tariffs and other restrictions on import of solar modules, which have adversely affected and may continue to adversely affect its Renewables business. Q4, 2024

The Company is subject to litigation and legal proceedings and may be subject to additional litigation, arbitration or legal proceedings in the future. Q4, 2024

The Company provides product warranties and, if the Company's product warranty obligations were significantly in excess of its reserves, the Company's business, financial condition and results of operations could be materially and adversely affected. Q4, 2024

Gibraltar Industries Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROCK	77 Outperform	$1.73B	13.47	13.70%	―	-5.13%	16.93%
JBI	70 Outperform	$1.14B	23.38	9.51%	―	-13.95%	-63.37%
APOG	68 Neutral	$833.80M	9.95	17.74%	2.61%	-3.95%	-14.56%
Sector *	65 Neutral	$4.45B	12.14	5.29%	248.12%	4.08%	-12.28%
SWIM	65 Neutral	$657.48M	77.89	-4.13%	―	-5.58%	-465.52%
NX	64 Neutral	$790.16M	27.09	1.56%	1.91%	29.87%	-76.37%
JELD	45 Neutral	$308.78M	―	-55.39%	―	-14.12%	-1264.86%

* Industrials Sector Average

Performance Comparison

ROCK

Gibraltar Industries

57.22

-16.27

-22.14%

APOG

Apogee

37.94

-24.23

-38.97%

Quanex

16.30

-15.03

-47.97%

JELD

JELD-WEN

3.62

-11.67

-76.32%

JBI

Janus International Group

7.91

-5.67

-41.75%

SWIM

Latham Group

5.59

1.74

45.19%

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.