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Gibraltar Industries (ROCK)
NASDAQ:ROCK
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Gibraltar Industries
(NASDAQ:ROCK)
72Outperform
Gibraltar Industries (ROCK) vs. S&P 500 (SPY)
Market Cap
$2.00B
Dividend YieldN/A
Average Volume (3M)284.34K
Price to Earnings (P/E)14.7
Beta (1Y)1.18
Revenue Growth-5.01%
EPS Growth24.50%
CountryUS
Employees2,107
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)4.47
Shares Outstanding30,355,837
10 Day Avg. Volume362,170
30 Day Avg. Volume284,341
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)N/A
Price to Sales (P/S)1.52
Price to Cash Flow (P/CF)25.00
P/FCF Ratio22.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$90.00Price Target Upside36.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Gibraltar Industries Business Overview & Revenue Model
Company DescriptionGibraltar Industries, Inc. (ROCK) is a leading manufacturer and provider of products and services for the renewable energy, residential, and infrastructure markets. The company operates through several segments, including Renewable Energy & Conservation, Residential Products, and Infrastructure Products, offering a diverse range of solutions such as solar racking systems, ventilation products, rain dispersion products, postal and parcel storage products, and infrastructure products for transportation and other industrial applications.
How the Company Makes MoneyGibraltar Industries generates revenue primarily through the sale of its diverse range of products across its operating segments. In the Renewable Energy & Conservation segment, the company earns money by providing solar racking systems and other related products that support solar energy projects. The Residential Products segment contributes to revenue through the manufacture and sale of building products such as ventilation systems, rain dispersion products, and postal storage solutions for residential applications. The Infrastructure Products segment generates income by supplying engineered products for infrastructure projects, including transportation and industrial applications. Gibraltar's revenue streams are bolstered by its focus on innovation, quality, and strategic partnerships across its served markets.
Gibraltar Industries Financial Statement Overview
Summary
Gibraltar Industries demonstrates strong profitability and efficient operations with a robust balance sheet characterized by low debt levels and high equity. However, challenges include declining revenue and free cash flow growth rates, which may affect future expansion.Income Statement
Gibraltar Industries shows consistent revenue generation with a slight decline from 2023 to 2024. The gross profit margin remains strong at 26.9% for 2024, indicating effective cost management. The net profit margin increased to 10.5% in 2024 from 8% in 2023, reflecting improved profitability. However, the revenue growth rate is negative, which could be a concern for future expansion. The EBIT and EBITDA margins are stable, showcasing operational efficiency.72
Positive
Balance Sheet
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The return on equity increased to 13.1% in 2024, suggesting efficient use of shareholder funds to generate profits. The equity ratio is robust at 74%, highlighting a strong financial foundation with significant equity funding.80
Positive
Cash Flow
Gibraltar Industries has a strong free cash flow of $154.3 million in 2024, though it decreased from 2023. The operating cash flow to net income ratio is 1.27, indicating good cash conversion from earnings. The free cash flow to net income ratio is 1.12, reflecting adequate free cash generation relative to net income. The free cash flow growth rate is negative, which might impact future investments.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.31B | 1.38B | 1.39B | 1.34B | 1.03B | Gross Profit |
| 351.83M | 361.97M | 318.69M | 290.01M | 256.34M | EBIT |
| 143.02M | 150.73M | 130.10M | 96.99M | 107.19M | EBITDA |
| 181.63M | 179.37M | 141.70M | 146.13M | 129.38M | Net Income Common Stockholders |
| 137.34M | 110.53M | 82.41M | 75.63M | 64.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 269.48M | 99.43M | 17.61M | 12.85M | 32.05M | Total Assets |
| 1.42B | 1.26B | 1.21B | 1.21B | 1.21B | Total Debt |
| 35.13M | 46.27M | 116.42M | 35.17M | 111.40M | Net Debt |
| -234.35M | -53.16M | 98.81M | 22.32M | 79.35M | Total Liabilities |
| 369.44M | 341.45M | 388.51M | 389.64M | 468.69M | Stockholders Equity |
| 1.05B | 915.00M | 822.10M | 825.26M | 743.80M |
| Cash Flow | Free Cash Flow | |||
| 154.33M | 204.57M | 82.63M | 5.37M | 76.04M | Operating Cash Flow |
| 174.26M | 218.48M | 102.69M | 23.07M | 89.10M | Investing Cash Flow |
| 8.54M | -15.72M | -71.68M | 24.54M | -326.71M | Financing Cash Flow |
| -12.19M | -120.33M | -25.01M | -66.61M | 79.46M |
Gibraltar Industries Technical Analysis
Positive
65.83
Price Trends
61.73
Positive
65.10
Positive
67.64
Negative
Market Momentum
1.22
Negative
58.23
Neutral
54.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROCK, the sentiment is Positive. The current price of 65.83 is above the 20-day moving average (MA) of 63.96, above the 50-day MA of 61.73, and below the 200-day MA of 67.64, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 58.23 is Neutral, neither overbought nor oversold. The STOCH value of 54.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROCK.
Gibraltar Industries Risk Analysis
Gibraltar Industries disclosed 22 risk factors in its most recent earnings report. Gibraltar Industries reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gibraltar Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.95B | 18.52 | 32.60% | 1.15% | -1.76% | 176.01% | |
72 Outperform | $2.00B | 14.74 | 13.99% | ― | -5.01% | 24.50% | |
71 Outperform | $6.15B | 23.92 | 39.28% | 0.80% | 11.62% | 20.76% | |
71 Outperform | $11.93B | 18.97 | 12.63% | 1.78% | 13.41% | -44.36% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
60 Neutral | $15.13B | 19.69 | -118.61% | 1.60% | -1.74% | -6.91% | |
44 Neutral | $510.80M | ― | -25.51% | ― | -15.09% | -358.01% |
* Industrials Sector Average
Performance Comparison
ROCK
Gibraltar Industries
65.83
-9.64
-12.77%
AWI
Armstrong World
140.21
19.62
16.27%
CSL
Carlisle Companies
330.65
-28.80
-8.01%
MAS
Masco
71.13
-2.79
-3.77%
OC
Owens Corning
139.46
-20.43
-12.78%
JELD
JELD-WEN
6.02
-13.17
-68.63%
Gibraltar Industries Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 13.52% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook, with notable achievements in operational improvements and cash flow generation but also significant challenges in sales decline and market issues in the renewables and residential segments.Highlights
Improved Operating Income
Despite a 7.9% decrease in net sales in Q4 2024, operating income improved by 11%, and adjusted EPS increased by 17.4%.
Cash Flow Generation
For 2024, Gibraltar generated $174 million in operating cash flow and $154 million in free cash flow, representing 12% of net sales.
Positive Bookings Momentum
Renewables bookings are up 33%, and AgTech bookings are up over 300% year-to-date compared to the prior year.
Acquisition of Lane Supply
Gibraltar acquired Lane Supply for $120 million, adding $112 million in net sales and an adjusted EBITDA margin of 14.8%.
Strong Infrastructure Backlog
The infrastructure business's backlog increased by 10% entering 2025, driven by strong demand and order conversion.
Lowlights
Decline in Net Sales
Consolidated net sales were down 3.9% to $1.31 billion for the full year 2024, affected by market issues in the renewables segment.
Decline in Renewables Segment
Q4 2024 renewables adjusted net sales decreased by 18.8%, and backlog decreased by 32% due to regulatory challenges.
Residential Segment Challenges
Residential segment net sales decreased by 4.8% in Q4 2024 due to market softness and product line simplification initiatives.
Company Guidance
During the Gibraltar Industries Fourth Quarter 2024 Financial Results Conference Call, the company provided detailed guidance for 2025, projecting net sales between $1.4 and $1.45 billion, representing 8% to 12% growth. They anticipate an adjusted operating margin ranging from 13.9% to 14.2%, with a 110 to 140 basis point expansion. Adjusted EBITDA margin is expected to be between 16.7% and 17%, and adjusted EPS is projected to grow 13% to 19% to a range of $4.80 to $5.05. Free cash flow as a percentage of net sales is targeted at 10%. The guidance includes organic growth in residential, ag tech, and infrastructure segments, flat to down sales in renewables, and contributions from the recent acquisition of Lane Supply.Gibraltar Industries Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Gibraltar Industries Appoints Metcalf Amidst Strong Q3 Results
Positive
Oct 30, 2024
Gibraltar Industries has appointed James Metcalf to its Board of Directors, enhancing its governance and strategic oversight. The company reported third-quarter 2024 financial results with net sales of $361 million and strong operating cash flow of $65 million, despite challenges in the solar and residential markets. While sales in the Renewables segment were impacted by regulatory issues, Agtech experienced significant growth, and the company remains well-positioned to navigate current market disruptions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.