Gibraltar (ROCK): Buy, Sell, or Hold Post Q2 Earnings?

September 16, 2025 at 00:01 AM EDT

ROCK Cover Image

Over the past six months, Gibraltar’s stock price fell to $61.18. Shareholders have lost 7.4% of their capital, which is disappointing considering the S&P 500 has climbed by 16.5%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.

Is there a buying opportunity in Gibraltar, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.

Why Is Gibraltar Not Exciting?

Even though the stock has become cheaper, we're swiping left on Gibraltar for now. Here are two reasons why ROCK doesn't excite us and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Gibraltar’s 3.6% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the industrials sector.

2. Low Gross Margin Reveals Weak Structural Profitability

For industrials businesses, cost of sales is usually comprised of the direct labor, raw materials, and supplies needed to offer a product or service. These costs can be impacted by inflation and supply chain dynamics in the short term and a company’s purchasing power and scale over the long term.

Gibraltar has bad unit economics for an industrials company, giving it less room to reinvest and develop new offerings. As you can see below, it averaged a 25.4% gross margin over the last five years. That means Gibraltar paid its suppliers a lot of money ($74.59 for every $100 in revenue) to run its business. Gibraltar Trailing 12-Month Gross Margin

Final Judgment

Gibraltar’s business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 12.2× forward P/E (or $61.18 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We're pretty confident there are superior stocks to buy right now. We’d suggest looking at one of our top digital advertising picks.

Stocks We Would Buy Instead of Gibraltar

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