$GMS Inc (GMS.US)$ GMS Inc (GMS) It is an American company l...

GMS Inc (GMS) It is an American company listed at $21 in 2016. The current price is 47.92, and the average yield over the past 6 years is 14.7%, which is a good performance.

The gross margin is very stable. It has basically been around 32.5% over the past 5 years. The return on net assets first fell to 3.7% from 11.5% in 2018, and has rapidly increased to 29% in the past two years.

Over the past five years, revenue rose from 2.51 billion to 4.64 billion, operating profit from 119 million to 419 million, and net profit from 63 million to 273 million, mainly growth in 2022.

The income statement shows that interest expenses are close to 60 million, accounting for 28% of operating profit in 2020 and 14% in 2021. The burden is not light in ordinary years.

The balance ratio has risen from 60.2% to 65.7% over the past five years.

Accounts receivable of $750 million accounted for 16% of revenue. Although the ratio seems normal, it increased by nearly 200 million from 2020 to 2021, while net profit increased by only 170 million during the same period. The inventory level is not high, but it is also growing rapidly, with an increase of nearly 200 million dollars. The combined increase in receivables and inventories was 2.3 times the increase in net profit.

Goodwill was 696 million, accounting for 65% of net assets. Long-term loans amounted to 1,137 billion dollars, accounting for 107% of net assets, and there were also many interest-bearing liabilities.

Over the past five years, the cumulative net operating amount was less than the net investment amount, and the shareholder surplus was negative.

The current ratio is 2.1, the quick ratio is 1.2, and the cash flow is quite safe.

Currently, the price-earnings ratio is 7.7. Considering the quality of income, interest burden, and the sustainability of the 2022 surge, it is currently on the sidelines.