GP Strategies (NYSE:GPX) stock had a good day in the market on Wednesday May 16. Shares climbed 3.66% and closed the day at $19.8. They're now trading 36.64% below their 52-week high of $31.25.
With today's good gain, GP Strategies now has a market cap of $327 million. That makes it a small cap company.
The business operates in the manufacturing industry and employs 3,645 people. Its shares trade primarily on the New York stock exchange.
GP Strategies has 16.49 million shares outstanding and 49,851 traded hands for the day. That's above the average 30-day volume of 43,758 shares. The amount of GP Strategies stock is also dropping as the company buys back its own shares. In the last 12 months, it repurchased $15 million worth.
Over the last five years, GP Strategies revenue is up by 26.8%. You can see this growth in annual revenue chart below.
In the last year alone, GP Strategies revenue has grown by 3.8%. That's a solid sign for GP Strategies stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, GP Strategies will continue to pull in revenue. So let's take a closer look at the company's total financial health. And the best way to do that is by looking at its balance sheet. GP Strategies cash comes in at $24 million and the company's debt is $66 million.
GP Strategies cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects.
What is GP Strategies Stock Worth?
To determine the value of GP Strategies stock let's look at a few key metrics.
Price-to-Earnings (P/E): This ratio comes in at 30.44 for GP Strategies. That's a bit high. A high P/E ratio shows that investors are already expecting high earnings growth.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 1.75, GP Strategies looks reasonable, but P/B varies greatly based on the industry.
These two metrics are a great place to start when valuing a company, but your analysis should go much deeper...