GMS Inc (GMS)
Pretax margin
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 174,295 | 216,455 | 303,060 | 338,796 | 374,166 | 389,482 | 408,581 | 439,567 | 447,503 | 452,042 | 446,164 | 405,146 | 364,819 | 303,587 | 242,828 | 181,444 | 137,094 | 58,559 | 50,419 | 50,738 |
| Revenue (ttm) | US$ in thousands | 5,513,750 | 5,592,980 | 5,590,620 | 5,540,770 | 5,501,910 | 5,392,980 | 5,369,250 | 5,379,300 | 5,329,250 | 5,313,800 | 5,232,780 | 4,952,350 | 4,634,880 | 4,278,433 | 3,876,024 | 3,538,330 | 3,298,823 | 3,137,470 | 3,147,631 | 3,196,704 |
| Pretax margin | 3.16% | 3.87% | 5.42% | 6.11% | 6.80% | 7.22% | 7.61% | 8.17% | 8.40% | 8.51% | 8.53% | 8.18% | 7.87% | 7.10% | 6.26% | 5.13% | 4.16% | 1.87% | 1.60% | 1.59% |
April 30, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $174,295K ÷ $5,513,750K
= 3.16%
The pretax margin of GMS Inc exhibited a notable upward trajectory from mid-2020 through early 2023, indicating an improvement in profitability before taxes. Starting at approximately 1.59% in July 2020 and marginally increasing to 1.60% by October 2020, the pretax margin demonstrated a steady growth trend during this period. By January 2021, it elevated to 1.87%, followed by a significant increase to 4.16% in April 2021. The margin continued its ascent, reaching 5.13% in July 2021 and 6.26% in October 2021. The upward momentum persisted into early 2022, with the margin reaching 7.10% in January and peaking at 8.53% as of October 2022.
Throughout 2022 and into the first quarter of 2023, the pretax margin maintained its elevated level, fluctuating slightly but remaining above 8%. Specifically, in January 2023, the margin was recorded at 8.51%, followed by marginal declines to 8.40% in April 2023, 8.17% in July 2023, and 7.61% in October 2023.
Starting from the fourth quarter of 2023 onwards, the pretax margin demonstrated a downward trend. It declined from 7.22% in January 2024 to 6.80% in April 2024, 6.11% in July 2024, and further down to 5.42% as of October 2024. The decline continued into early 2025, with the margin decreasing to 3.87% in January and further to 3.16% in April 2025.
Overall, GMS Inc's pretax margin experienced significant expansion from 2020 through early 2023, reflecting a period of increasing efficiency and profitability before tax obligations. However, starting in late 2023, a discernible deterioration in pretax profitability emerged, with margins declining notably into 2025. This pattern suggests shifts in operational performance, cost management, or macroeconomic factors influencing profitability over the analyzed period.
Peer comparison
Apr 30, 2025