GMS Inc. (NYSE:GMS) Surpasses Earnings and Revenue Estimates

GMS Inc. (NYSE:GMS) is a leading distributor of specialty building products in North America. The company operates within the Zacks Building Products - Retail industry, providing a wide range of construction materials. GMS competes with other major players in the industry, focusing on delivering quality products and services to its customers.

On June 18, 2025, GMS reported earnings per share (EPS) of $1.29, surpassing the estimated $1.15. This marks a 12.17% surprise above expectations, as highlighted by Zacks. However, this EPS is lower than the $1.93 reported in the same quarter last year. In the previous quarter, GMS faced a negative surprise of 33.81%, earning only $0.92 per share against an anticipated $1.39. GMS achieved a revenue of approximately $1.33 billion, exceeding the estimated $1.30 billion by 2.81%. Despite this, the revenue is a slight decrease from the $1.41 billion reported in the same period the previous year.

Over the past four quarters, GMS has exceeded consensus revenue estimates twice, indicating some volatility in its financial performance. The company's financial metrics provide further insight into its valuation. GMS has a price-to-earnings (P/E) ratio of approximately 21.96, showing how much investors are willing to pay per dollar of earnings. The price-to-sales ratio is about 0.57, suggesting a relatively low valuation compared to its sales. Additionally, the enterprise value to sales ratio is around 0.87. GMS's enterprise value to operating cash flow ratio is approximately 12.41, offering insight into its valuation against cash flow from operations.

The company has an earnings yield of about 4.55%, indicating the return on investment. With a debt-to-equity ratio of approximately 1.25, GMS shows a moderate level of financial leverage. The current ratio of around 2.30 suggests a strong ability to cover short-term liabilities with short-term assets.