GMS Inc.

Overview Key strengths Key risks Leading wallboard and ceiling system products distributor in the U.S. Niche focus on narrow subproduct categories within the building materials? distribution industry. S&P Global Ratings-adjusted EBITDA margins above 10% compare favorably against other distribution peers. Prone to housing and construction cyclicality. Strong cushion in credit measures against our 3x-4x tolerance for the rating. Aggressive strategy that prioritizes growth and shareholder returns over debt reduction. We expect GMS to sustain S&P Global Ratings-adjusted leverage at the lower end of 2x-3x over the next 12-24 months. These metrics indicate a strong credit cushion when compared against our 3x-4x range through a business cycle-adjusted leverage tolerance for the rating. We expect the company to continue to pursue inorganic

...We believe GMS Inc.'s credit measures contain a strong credit buffer, making its credit quality less susceptible to a deterioration during a potential downturn in economic and housing cycles. We expect GMS to sustain S&P Global Ratings-adjusted leverage at the lower...

Full Report