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Gibraltar Industries (ROCK)
NASDAQ:ROCK
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Gibraltar Industries
(NASDAQ:ROCK)
Rating:77Outperform
Price Target:
$68.00
▲( 15.10% Upside)
Gibraltar Industries (ROCK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.75B
Dividend YieldN/A
Average Volume (3M)301.80K
Price to Earnings (P/E)13.7
Beta (1Y)1.18
Revenue Growth-5.13%
EPS Growth16.93%
CountryUS
Employees2,097
SectorIndustrials
Sector Strength92
IndustryConstruction
Share Statistics
EPS (TTM)0.95
Shares Outstanding29,490,360
10 Day Avg. Volume346,034
30 Day Avg. Volume301,796
Financial Highlights & Ratios
PEG Ratio-4.98
Price to Book (P/B)1.76
Price to Sales (P/S)0.00
P/FCF Ratio16.04
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit5.01
Enterprise Value/Ebitda2.34
Forecast
1Y Price Target
$79.00Price Target Upside33.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Gibraltar Industries Business Overview & Revenue Model
Company DescriptionGibraltar Industries, Inc. manufactures and distributes building products for the renewable energy, residential, agtech, and infrastructure markets in North America and Asia. It operates through four segments: Renewables, Residential, Agtech, and Infrastructure. The Renewables segment designs, engineers, manufactures, and installs solar racking and electrical balance of systems. The Residential segment offers roof and foundation ventilation products and accessories, such as solar powered units; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing products and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, rooftop safety kits, chimney caps, heat trace coils and exterior products, remote-controlled deck awnings for sun protection, and solar-powered ventilation products. The Agtech segment offers growing and processing solutions, including the designing, engineering, manufacturing, and installation of greenhouses; and botanical extraction systems. The Infrastructure segment offers expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems. It serves solar developers, institutional and commercial growers of food and plants, home improvement retailers, wholesalers, distributors, and contractors. Gibraltar Industries, Inc. was founded in 1972 and is headquartered in Buffalo, New York.
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 financial health, characterized by stable profitability, effective leverage management, and robust cash flow generation. Despite a slight decline in revenue, the company maintains strong margins and a solid balance sheet. The cash flow statements support a healthy financial position, ensuring resilience in the construction industry.Income Statement
Gibraltar Industries shows steady profitability with a gross profit margin of 26.75% and a net profit margin of 10.22% for TTM (Trailing-Twelve-Months). While the revenue growth rate has been slightly negative at -0.19%, the company maintains a healthy EBIT margin of 10.83% and an EBITDA margin of 13.27%. These figures highlight strong operational efficiency despite the slight dip in revenue.75
Positive
Balance Sheet
The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05, indicating conservative leverage. Return on Equity (ROE) is robust at 13.23%, reflecting effective utilization of shareholder funds. The equity ratio of 70.33% underscores financial stability, showcasing a solid asset base supported by equity.80
Positive
Cash Flow
Operating cash flow is strong with an operating cash flow to net income ratio of 1.01, indicating efficient cash generation relative to net income. Although free cash flow decreased by -30.17%, the free cash flow to net income ratio remains strong at 0.81, demonstrating solid cash flow management.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.31B | 1.31B | 1.38B | 1.39B | 1.34B | 1.03B | Gross Profit |
| 349.31M | 351.83M | 361.97M | 318.69M | 290.01M | 256.34M | EBIT |
| 141.41M | 143.02M | 150.73M | 130.10M | 96.99M | 107.19M | EBITDA |
| 182.44M | 201.24M | 179.37M | 141.70M | 146.13M | 129.38M | Net Income Common Stockholders |
| 133.51M | 137.34M | 110.53M | 82.41M | 75.63M | 64.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 146.66M | 269.48M | 99.43M | 17.61M | 12.85M | 32.05M | Total Assets |
| 1.32B | 1.42B | 1.26B | 1.21B | 1.21B | 1.21B | Total Debt |
| 33.79M | 46.60M | 46.27M | 116.42M | 35.17M | 111.40M | Net Debt |
| -112.87M | -222.88M | -53.16M | 98.81M | 22.32M | 79.35M | Total Liabilities |
| 379.67M | 371.38M | 341.45M | 388.51M | 389.64M | 468.69M | Stockholders Equity |
| 940.18M | 1.05B | 915.00M | 822.10M | 825.26M | 743.80M |
| Cash Flow | Free Cash Flow | ||||
| 107.77M | 154.33M | 204.57M | 82.63M | 5.37M | 76.04M | Operating Cash Flow |
| 134.77M | 174.26M | 218.48M | 102.69M | 23.07M | 89.10M | Investing Cash Flow |
| -182.75M | 8.54M | -15.72M | -71.68M | 24.54M | -326.71M | Financing Cash Flow |
| -73.15M | -12.19M | -120.33M | -25.01M | -66.61M | 79.46M |
Gibraltar Industries Technical Analysis
Negative
59.08
Price Trends
57.72
Positive
59.80
Negative
63.96
Negative
Market Momentum
1.20
Negative
51.88
Neutral
27.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROCK, the sentiment is Negative. The current price of 59.08 is above the 20-day moving average (MA) of 58.54, above the 50-day MA of 57.72, and below the 200-day MA of 63.96, indicating a neutral trend. The MACD of 1.20 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 27.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks
1.
The Company is subject to the risk of tariffs and other restrictions on import of solar modules, which have adversely affected and may continue to adversely affect its Renewables business. Q4, 2024
2.
The Company is subject to litigation and legal proceedings and may be subject to additional litigation, arbitration or legal proceedings in the future. Q4, 2024
3.
The Company provides product warranties and, if the Company's product warranty obligations were significantly in excess of its reserves, the Company's business, financial condition and results of operations could be materially and adversely affected. Q4, 2024
Gibraltar Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.75B | 13.68 | 13.70% | ― | -5.13% | 16.93% | |
70 Outperform | $1.13B | 23.07 | 9.51% | ― | -13.95% | -63.37% | |
68 Neutral | $838.76M | 10.01 | 17.74% | 2.60% | -3.95% | -14.56% | |
68 Neutral | $829.36M | 28.43 | 1.56% | 1.82% | 29.87% | -76.37% | |
65 Neutral | $678.42M | 77.89 | -4.13% | ― | -5.58% | -465.52% | |
64 Neutral | $4.39B | 11.81 | 5.20% | 249.38% | 3.96% | -12.36% | |
45 Neutral | $291.72M | ― | -55.39% | ― | -14.12% | -1264.86% |
* Industrials Sector Average
Performance Comparison
ROCK
Gibraltar Industries
59.08
-14.40
-19.60%
APOG
Apogee
38.66
-27.14
-41.25%
NX
Quanex
17.38
-14.71
-45.84%
JELD
JELD-WEN
3.36
-12.20
-78.41%
JBI
Janus International Group
8.06
-6.42
-44.34%
SWIM
Latham Group
5.84
2.12
56.99%
Gibraltar Industries Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 11.83%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in backlog and Agtech bookings, alongside challenges in the Renewables segment and potential tariff impacts. Strong cash flow and a new share repurchase program contributed positively, while decreased sales in certain segments were concerning.Q1-2025 Updates
Positive Updates
Solid Margin Performance
EPS improved by 19% due to solid margin performance in Residential, Agtech, and Infrastructure businesses, which offset challenges in the Renewables business.
Record Backlog
Consolidated backlog increased by 30% to $434 million, reaching a record level for Gibraltar Industries.
Agtech Bookings Surge
Year-over-year Agtech bookings increased by 226%, reflecting strong demand in produce and structures markets.
Residential Business Expansion
The Lane Supply acquisition and two other transactions expanded Gibraltar's presence in the residential and light commercial metal roofing market.
Strong Cash Flow Generation
Gibraltar Industries generated $14 million in operating cash flow and $2 million in free cash flow, with a continued strong balance sheet and debt-free status.
New Share Repurchase Program
A new three-year $200 million share repurchase program was approved, aiming to return value to shareholders.
Negative Updates
Renewables Segment Challenges
Renewables adjusted net sales decreased by 15.1% with backlog down 23% due to industry uncertainty and inefficiencies related to new technology launches.
Decreased Residential Sales
Net sales for the Residential segment decreased by 1.3%, driven by lower retail store traffic and soft end market point-of-sale activity.
Infrastructure Sales Decline
Infrastructure net sales decreased by 2.7% due to project delays, although demand remains strong.
Potential Tariff Impacts
Concerns about potential 20% to 30% tariffs impacting markets, products, and input costs, although mitigation strategies are in place.
Company Guidance
During the call, Gibraltar Industries provided guidance that reaffirmed their full-year outlook for 2025, which remains unchanged from previous guidance. The company expects net sales to range between $1.4 billion and $1.45 billion, reflecting growth of 8% to 12%. Adjusted operating margin is projected to expand by 110 to 140 basis points, ranging from 13.9% to 14.2%, while adjusted EBITDA margin is expected to range between 16.7% and 17%, expanding by 100 to 130 basis points. The company anticipates GAAP EPS to be in the range of $4.25 to $4.50, and adjusted EPS to grow by 13% to 19%, reaching between $4.80 and $5.05. Free cash flow as a percentage of net sales is projected to reach 10%. The reaffirmation is supported by strong order backlog, participation gains in the Residential segment, anticipated contributions from recent acquisitions, and well-established plans to mitigate potential tariff impacts.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.