5 Analysts Assess GMS: What You Need To Know

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on GMS GMS in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have set 12-month price targets for GMS, revealing an average target of $86.6, a high estimate of $98.00, and a low estimate of $70.00. This current average has increased by 10.18% from the previous average price target of $78.60.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive GMS. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to GMS. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of GMS compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of GMS's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on GMS analyst ratings.

Unveiling the Story Behind GMS

GMS Inc is a distributor of specialty building products including wallboard, suspended ceilings systems, or ceilings, steel framing, and other complementary building products. The company serves its products to commercial new construction, commercial repair and remodel, residential new construction, and residential repair and remodel (R&R). Its geographical segment is Central, Midwest, Northeast, Southern, Southeast, Western, and Canada. The company generates maximum revenue from Wallboard products and geographically from the United States.

GMS: A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Challenges: GMS's revenue growth over 3 months faced difficulties. As of 31 October, 2023, the company experienced a decline of approximately -0.7%. This indicates a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 5.7%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 5.93%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): GMS's ROA excels beyond industry benchmarks, reaching 2.45%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.92.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.