U.S. markets open in 52 minutes

GMS Inc. (GMS)

NYSE - NYSE Delayed Price. Currency in USD
Add to watchlist
43.00+0.70 (+1.65%)
At close: 4:00PM EDT
44.00 +1.00 (2.33%)
Pre-Market: 08:00AM EDT
Sign in to post a message.
  • T
    TheRag
    Churchill Capital Corp IV
    It seems lots of $amc and $gms Apes may be considering $CCIV. Shorts squeezed this week??? Ouch.
    Bullish
  • Y
    Yahoo Finance Insights
    GMS is up 5.12% to 42.11
  • a
    alexalekhine
    19FQ3 Free Cash Flow was $55.6 million compared to $29.4 million a year earlier.

    Year-ago free cash flow was 5.0% of revenue ($585.5mm); in the current quarter, free cash flow was 7.7% of revenue ($723.9mm).

    They announced another acquisition in the SE but no price was disclosed.

    LTM free cash flow is $106.7mm, with equity market cap at the current price of $17.75 at approximately $710mm, the Free Cash Flow yield (FCF / Equity market cap) is approximately 15%.

    During the quarter, compared to the october quarter, Cash on the balance sheet increased to $74.3mm from $52.9mm (up $21.4 million), while debt declined to $1.2339 billion from $1.2452 billion, a decrease of $11.9 million.

    EBITDA of $57.2mm (7.9% of sales) was up from $40.2mm (6.9% of sales) a year ago.

    The 41 cents of adjusted e.p.s. did not meet the 51 cent "consensus estimate."

    In my view the stock reaction is overblown and I am bullish on the stock below $18.

    fwiw, dyodd

    aa
  • J
    JD
    Anyone know why capital expenditures are consistently far less than depreciation and amortization? Is it because D&A primarily consists of amortization of goodwill acquired from many large acquisitions?
  • a
    alexalekhine
    They generated nearly $175 million in free cash flow in FY19 (ended April 30th) with $193.6mm of Cash from Operations and $18.8 million of capex.

    Organic revenue growth was 7% for the year. I guess most of this is price, since I don;t think demand for this stuff is growing very fast.

    This is a VERY solid result.

    FCF of $174.8 million is 22.1% of the company's current equity market cap of $788 million.

    Management reported having bought back $5 million of its own shares during 19FQ4 and having $58mm of repurchase authorization remaining.

    According to my Bloomberg terminal, 19FQ4 debt was $1.141 bilion, down from $1.234 billion at 19FQ3, so during the one quarter, GMS reduced debt by $92.7 million.

    In teh upcoming July quarter, the company will likely have negative Free Cash Flow, and this is a seasonal thing. last Year's Free Cash Flow figures from Q1 through Q4 were as follows: ($51.6mm), $88.1mm, $55.6mm, and $82.8mm.

    Please recall that the Free Cash Flow figure is being bolstered by the amortization of acquisition-related intangibles, which have a relatively short life. If GMS substantially reduces teh pace at which it makes acquisitions, that amortization will disappear, net income will be bolsetered, but the company will owe taxes on the income so there will be some drag on cash flow from the taxes that are owed. Still, at a 22% FCF Yield, this stock appears to be super cheap.

    aa
  • a
    alexalekhine
    The stock has almost reached Sidoti's recently lowered price target of $24 (from $27).

    I'll rebuy on a decent pullback.
  • C
    Charles
    I'd just like to say your welcome to everyone. I'm a forklift operator/ warehouse consultant at one of GMS affiliates. It is single handedly my work which has made this company the best drywall supplier in North America. No need to thank me, I love my job. Good luck!
  • S
    Swaggy
    GMS owns the public drywall market
  • a
    alexalekhine
    Many consider the appointment of a new CEO or CFO to be a potential "red flag" especially in a company that has been engaged in "roll-up" M&A activity and has a bit of debt.

    aa
  • Y
    Yahoo Finance Insights
    GMS is down 4.96% to 43.72
  • a
    alexalekhine
    GMS to be added to the S&P600 Smallcap Index.

    Afterhours on 5/1, the stock is trading up about 8% near $19.50.

    On a more juvenile note:
    Hooray for me.

    aa
  • a
    alexalekhine
    20FQ1 89 cents against an 82 cent consensus estiamte.

    Big improvement in seasonally weak (read "negative" Cash from Operations).

    Organic revenue growth of 3.4%
  • a
    alexalekhine
    The market has been afraid that a recession would slam revenues here and result in negative operating leverage, devastating the bottom line and cash flow. But it doesn't look as if that is happening.
  • a
    alexalekhine
    Earnings Report is on 8/29
  • G
    GP
    why is it keep going down
  • t
    timothy
    Job stock!
  • a
    alexalekhine
    Guidance from 19FQ4 Conference Call

    I found the following items of guidance for FY20

    Gross margin: 32.2% (target)
    Capex: $20-$25 million
    Interest Expense: $70-$75 million
    Free Cash Flow: 40-45% of Adjusted EBITDA.

    aa
  • a
    alexalekhine
    it look as as if they attributed $35mm of cash flow to an increase in Accounts payable taht will not be repeated, so, an adjusted cash flow number would be $140mm for the year.
  • Y
    Yahoo Finance Insights
    GMS is down 5.00% to 42.94
  • W
    Wallstreetbets
    CERC going to go huge tomorrow! Wallstreetbets now on the stock for tomorrow
    Bullish