Ratio Analysis: Unpacking GMS Inc (GMS)’s Price-to-Cash and Price-to-Free Cash Flow

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After finishing at $89.89 in the prior trading day, GMS Inc (NYSE: GMS) closed at $84.40, down -6.11%. In other words, the price has decreased by -$6.11 from its previous closing price. On the day, 1.32 million shares were traded. GMS stock price reached its highest trading level at $84.85 during the session, while it also had its lowest trading level at $77.285.

Ratios:

Our goal is to gain a better understanding of GMS by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 20.23 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 8.94. For the most recent quarter (mrq), Quick Ratio is recorded 1.40 and its Current Ratio is at 2.17. In the meantime, Its Debt-to-Equity ratio is 1.05 whereas as Long-Term Debt/Eq ratio is at 0.98.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, DA Davidson on August 23, 2023, initiated with a Buy rating and assigned the stock a target price of $82.

On December 09, 2022, Loop Capital Downgraded its rating to Hold which previously was Buy and also upped its target price recommendation from $52 to $60.

Truist Downgraded its Buy to Hold on September 07, 2022, whereas the target price for the stock was revised from $50 to $46.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Mar 27 ’24 when Apolinsky Craig D sold 20,000 shares for $96.57 per share. The transaction valued at 1,931,400 led to the insider holds 10,360 shares of the business.

Hendren George T sold 10,554 shares of GMS for $1,018,355 on Mar 22 ’24. The SVP, Chief Operating Officer now owns 23,261 shares after completing the transaction at $96.49 per share. On Mar 21 ’24, another insider, Turner John C JR, who serves as the President and CEO of the company, sold 6,266 shares for $97.58 each. As a result, the insider received 611,436 and left with 48,074 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, GMS now has a Market Capitalization of 3580644864 and an Enterprise Value of 4714907648. As of this moment, GMS’s Price-to-Earnings (P/E) ratio for their current fiscal year is 12.53, and their Forward P/E ratio for the next fiscal year is 9.18. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 5.70. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.61 while its Price-to-Book (P/B) ratio in mrq is 2.30. Its current Enterprise Value per Revenue stands at 0.874 whereas that against EBITDA is 8.013.

Stock Price History:

The Beta on a monthly basis for GMS is 1.63, which has changed by 0.24428713 over the last 52 weeks, in comparison to a change of 0.2586832 over the same period for the S&P500. Over the past 52 weeks, GMS has reached a high of $101.04, while it has fallen to a 52-week low of $56.58. The 50-Day Moving Average of the stock is -9.31%, while the 200-Day Moving Average is calculated to be 4.90%.

Shares Statistics:

The stock has traded on average 320.82K shares per day over the past 3-months and 467640 shares per day over the last 10 days, according to various share statistics. A total of 39.75M shares are outstanding, with a floating share count of 39.60M. Insiders hold about 0.57% of the company’s shares, while institutions hold 98.87% stake in the company. Shares short for GMS as of 1715731200 were 1228921 with a Short Ratio of 3.95, compared to 1713139200 on 984928. Therefore, it implies a Short% of Shares Outstanding of 1228921 and a Short% of Float of 4.58.

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