Cracking The Code: Understanding Analyst Reviews For GMS
Analysts' ratings for GMS (NYSE:GMS) over the last quarter vary from bullish to bearish, as provided by 5 analysts.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 4 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $89.2, a high estimate of $100.00, and a low estimate of $81.00. This current average has decreased by 11.16% from the previous average price target of $100.40.
Exploring Analyst Ratings: An In-Depth Overview
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Mike Dahl | RBC Capital | Lowers | Sector Perform | $85.00 | $92.00 |
| Jeffrey Stevenson | Loop Capital | Lowers | Hold | $85.00 | $100.00 |
| Matthew Bouley | Barclays | Lowers | Equal-Weight | $81.00 | $93.00 |
| Keith Hughes | Truist Securities | Lowers | Hold | $95.00 | $105.00 |
| David Manthey | Baird | Lowers | Outperform | $100.00 | $112.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to GMS. This information provides a snapshot of how analysts perceive 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 explore the dynamics of price targets, providing estimates for the future value of GMS's stock. This examination reveals shifts in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of GMS's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on GMS analyst ratings.
About 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.
Breaking Down GMS's Financial Performance
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: GMS's remarkable performance in 3 months is evident. As of 31 January, 2024, the company achieved an impressive revenue growth rate of 1.92%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: GMS's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 4.12%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): GMS's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.71%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.58%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.86.
How Are Analyst Ratings Determined?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.