GMS Net Income vs Gross Profit Analysis

GMS Stock  USD 96.85  0.30  0.31%   
GMS financial indicator trend analysis is much more than just examining GMS Inc latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether GMS Inc is a good investment. Please check the relationship between GMS Net Income and its Gross Profit accounts. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GMS Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.

Net Income vs Gross Profit

Net Income vs Gross Profit Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of GMS Inc Net Income account and Gross Profit. At this time, the significance of the direction appears to have almost identical trend.
The correlation between GMS's Net Income and Gross Profit is 0.97. Overlapping area represents the amount of variation of Net Income that can explain the historical movement of Gross Profit in the same time period over historical financial statements of GMS Inc, assuming nothing else is changed. The correlation between historical values of GMS's Net Income and Gross Profit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Income of GMS Inc are associated (or correlated) with its Gross Profit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit has no effect on the direction of Net Income i.e., GMS's Net Income and Gross Profit go up and down completely randomly.

Correlation Coefficient

0.97
Relationship DirectionPositive 
Relationship StrengthVery Strong

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in GMS Inc financial statement analysis. It represents the amount of money remaining after all of GMS Inc operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.

Gross Profit

Gross profit is a required income statement account that reflects total revenue of GMS Inc minus its cost of goods sold. It is profit before GMS operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
Most indicators from GMS's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into GMS Inc current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GMS Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
At this time, GMS's Tax Provision is comparatively stable compared to the past year. Enterprise Value Multiple is likely to gain to 10.11 in 2024, whereas Selling General Administrative is likely to drop slightly above 740.1 M in 2024.
 2021 2022 2023 2024 (projected)
Gross Profit1.5B1.7B2.0B2.1B
Total Revenue4.6B5.3B6.1B6.4B

GMS fundamental ratios Correlations

0.750.710.050.730.750.010.610.720.720.690.690.730.660.74-0.160.380.70.660.740.750.820.690.730.670.72
0.750.970.080.990.870.180.660.880.910.960.840.90.790.99-0.090.610.960.790.990.980.840.960.880.890.69
0.710.970.030.950.810.090.50.860.910.990.760.870.820.99-0.050.570.990.820.920.970.831.00.830.930.73
0.050.080.030.130.110.410.080.040.120.090.070.14-0.190.05-0.43-0.190.07-0.190.150.080.070.030.180.080.14
0.730.990.950.130.860.250.660.870.90.940.820.90.780.98-0.160.580.940.780.990.960.820.940.870.880.68
0.750.870.810.110.860.090.870.970.960.810.980.980.810.85-0.130.480.810.810.870.860.820.80.990.750.65
0.010.180.090.410.250.090.140.050.080.130.120.11-0.120.13-0.73-0.260.09-0.120.260.16-0.010.070.130.03-0.08
0.610.660.50.080.660.870.140.80.730.480.90.810.650.6-0.120.420.480.650.710.60.610.50.840.440.39
0.720.880.860.040.870.970.050.80.980.840.960.980.910.88-0.020.60.850.910.850.850.770.870.970.760.61
0.720.910.910.120.90.960.080.730.980.910.940.980.850.92-0.040.570.910.850.890.910.790.910.970.820.65
0.690.960.990.090.940.810.130.480.840.910.760.860.760.98-0.070.541.00.760.920.980.820.990.840.930.72
0.690.840.760.070.820.980.120.90.960.940.760.950.790.82-0.060.530.760.790.840.810.720.770.980.670.52
0.730.90.870.140.90.980.110.810.980.980.860.950.870.89-0.130.530.870.870.890.880.820.860.980.810.68
0.660.790.82-0.190.780.81-0.120.650.910.850.760.790.870.80.050.560.781.00.710.750.750.810.810.730.66
0.740.990.990.050.980.850.130.60.880.920.980.820.890.8-0.050.620.980.80.970.990.830.980.870.90.7
-0.16-0.09-0.05-0.43-0.16-0.13-0.73-0.12-0.02-0.04-0.07-0.06-0.130.05-0.050.64-0.050.05-0.18-0.14-0.270.02-0.13-0.2-0.34
0.380.610.57-0.190.580.48-0.260.420.60.570.540.530.530.560.620.640.570.560.550.50.250.630.490.370.08
0.70.960.990.070.940.810.090.480.850.911.00.760.870.780.98-0.050.570.780.920.980.820.990.840.930.73
0.660.790.82-0.190.780.81-0.120.650.910.850.760.790.871.00.80.050.560.780.710.750.750.810.810.730.66
0.740.990.920.150.990.870.260.710.850.890.920.840.890.710.97-0.180.550.920.710.970.830.910.890.860.67
0.750.980.970.080.960.860.160.60.850.910.980.810.880.750.99-0.140.50.980.750.970.880.960.880.930.75
0.820.840.830.070.820.82-0.010.610.770.790.820.720.820.750.83-0.270.250.820.750.830.880.790.80.850.95
0.690.961.00.030.940.80.070.50.870.910.990.770.860.810.980.020.630.990.810.910.960.790.830.90.68
0.730.880.830.180.870.990.130.840.970.970.840.980.980.810.87-0.130.490.840.810.890.880.80.830.770.64
0.670.890.930.080.880.750.030.440.760.820.930.670.810.730.9-0.20.370.930.730.860.930.850.90.770.82
0.720.690.730.140.680.65-0.080.390.610.650.720.520.680.660.7-0.340.080.730.660.670.750.950.680.640.82
Click cells to compare fundamentals

GMS Account Relationship Matchups

GMS fundamental ratios Accounts

201920202021202220232024 (projected)
Common Stock Shares Outstanding42.5M43.3M43.9M42.6M49.0M44.1M
Total Assets2.3B2.5B3.1B3.3B3.8B2.2B
Short Long Term Debt Total1.2B1.1B1.3B1.3B1.5B991.9M
Other Current Liab35.0M50.9M235.9M45.1M51.9M95.3M
Total Current Liabilities427.9M562.5M689.2M706.3M812.2M413.5M
Total Stockholder Equity634.0M822.5M1.1B1.3B1.5B1.5B
Other Liab57.1M57.8M67.0M92.8M83.5M62.3M
Net Tangible Assets(281.0M)(104.7M)(86.1M)174.3M200.4M210.4M
Property Plant And Equipment Net420.7M429.7M504.0M585.8M673.6M707.3M
Current Deferred Revenue102.0M96.4M109.1M182.5M209.8M220.3M
Net Debt1.0B935.2M1.2B1.1B1.3B903.2M
Retained Earnings169.0M274.5M548.0M881.0M1.0B1.1B
Accounts Payable213.2M323.0M367.3M377.0M433.6M455.2M
Cash210.9M167.0M101.9M164.7M189.5M198.9M
Non Current Assets Total1.4B1.4B1.7B1.7B2.0B1.3B
Non Currrent Assets Other13.2M9.0M8.8M11.4M13.1M10.8M
Other Assets22.2M24.7M26.7M31.2M35.9M19.6M
Long Term Debt954.0M932.4M1.1B1.0B1.2B868.5M
Cash And Short Term Investments210.9M167.0M101.9M164.7M189.5M198.9M
Net Receivables405.3M558.7M750.0M792.2M911.1M477.5M
Good Will553.1M576.3M695.9M700.8M805.9M554.9M
Common Stock Total Equity404K426K431K428K471.5K429.1K
Liabilities And Stockholders Equity2.3B2.5B3.1B3.3B3.8B2.2B
Non Current Liabilities Total1.2B1.1B1.4B1.3B1.5B1.0B
Inventory299.8M357.1M551.0M575.5M661.8M694.9M
Other Current Assets15.0M19.5M20.2M17.1M19.6M12.6M
Other Stockholder Equity529.7M542.7M522.1M428.5M492.8M490.9M
Total Liab1.7B1.7B2.0B2.0B2.3B1.5B
Property Plant And Equipment Gross420.7M429.7M731.2M850.4M978.0M1.0B
Short Long Term Debt50.2M46.0M47.6M54.0M48.6M67.9M
Total Current Assets931.0M1.1B1.4B1.5B1.8B912.7M
Accumulated Other Comprehensive Income(65.1M)4.8M(6.0M)(35.1M)(31.6M)(30.0M)
Short Term Debt83.2M79.5M86.0M101.7M117.0M122.8M
Intangible Assets361.9M350.9M454.7M399.7M459.6M343.5M
Common Stock404K426K431K428K471.5K429.1K
Property Plant Equipment420.7M429.7M504.0M585.8M673.6M707.3M
Long Term Debt Total1.0B932.4M1.1B1.0B1.2B924.6M
Capital Surpluse529.7M542.7M522.1M428.5M492.8M506.6M
Non Current Liabilities Other78.0M63.5M55.2M48.3M43.5M46.5M

GMS Investors Sentiment

The influence of GMS's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in GMS. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to GMS's public news can be used to forecast risks associated with an investment in GMS. The trend in average sentiment can be used to explain how an investor holding GMS can time the market purely based on public headlines and social activities around GMS Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
GMS's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for GMS's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average GMS's news discussions. The higher the estimated score, the more favorable is the investor's outlook on GMS.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards GMS in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, GMS's short interest history, or implied volatility extrapolated from GMS options trading.

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When determining whether GMS Inc is a strong investment it is important to analyze GMS's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact GMS's future performance. For an informed investment choice regarding GMS Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GMS Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running GMS's price analysis, check to measure GMS's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GMS is operating at the current time. Most of GMS's value examination focuses on studying past and present price action to predict the probability of GMS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GMS's price. Additionally, you may evaluate how the addition of GMS to your portfolios can decrease your overall portfolio volatility.
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Is GMS's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GMS. If investors know GMS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GMS listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.16)
Earnings Share
7.05
Revenue Per Share
132.882
Quarterly Revenue Growth
0.019
Return On Assets
0.0884
The market value of GMS Inc is measured differently than its book value, which is the value of GMS that is recorded on the company's balance sheet. Investors also form their own opinion of GMS's value that differs from its market value or its book value, called intrinsic value, which is GMS's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GMS's market value can be influenced by many factors that don't directly affect GMS's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GMS's value and its price as these two are different measures arrived at by different means. Investors typically determine if GMS is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GMS's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.