GEA GROUP AG (G1A.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:G1A - DE0006602006 - Common Stock
60.5 EUR
-0.25 (-0.41%)
We assign a fundamental rating of 6 out of 10 to G1A. G1A was compared to 115 industry peers in the Machinery industry. G1A scores excellent points on both the profitability and health parts. This is a solid base for a good stock. G1A is valied quite expensively at the moment, while it does show a decent growth rate. This makes G1A very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year G1A was profitable.
- In the past year G1A had a positive cash flow from operations.
- G1A had positive earnings in each of the past 5 years.
- G1A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 7.06%, G1A belongs to the best of the industry, outperforming 83.48% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 17.78%, G1A belongs to the top of the industry, outperforming 80.87% of the companies in the same industry.
- G1A's Return On Invested Capital of 14.29% is amongst the best of the industry. G1A outperforms 88.70% of its industry peers.
- G1A had an Average Return On Invested Capital over the past 3 years of 11.87%. This is above the industry average of 8.97%.
- The last Return On Invested Capital (14.29%) for G1A is above the 3 year average (11.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 17.78% | ||
| ROIC | 14.29% |
ROA(3y)6.59%
ROA(5y)5.33%
ROE(3y)16.62%
ROE(5y)13.92%
ROIC(3y)11.87%
ROIC(5y)9.97%
1.3 Margins
- The Profit Margin of G1A (7.32%) is better than 73.91% of its industry peers.
- G1A's Profit Margin has improved in the last couple of years.
- G1A's Operating Margin of 10.84% is fine compared to the rest of the industry. G1A outperforms 72.17% of its industry peers.
- In the last couple of years the Operating Margin of G1A has grown nicely.
- With a Gross Margin value of 36.82%, G1A perfoms like the industry average, outperforming 44.35% of the companies in the same industry.
- G1A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.84% | ||
| PM (TTM) | 7.32% | ||
| GM | 36.82% |
OM growth 3Y6.05%
OM growth 5Y29.26%
PM growth 3Y3.05%
PM growth 5YN/A
GM growth 3Y2.65%
GM growth 5Y4.49%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), G1A is creating value.
- G1A has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for G1A has been reduced compared to 5 years ago.
- G1A has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.21 indicates that G1A is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.21, G1A is doing good in the industry, outperforming 71.30% of the companies in the same industry.
- The Debt to FCF ratio of G1A is 1.05, which is an excellent value as it means it would take G1A, only 1.05 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.05, G1A belongs to the best of the industry, outperforming 90.43% of the companies in the same industry.
- A Debt/Equity ratio of 0.07 indicates that G1A is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.07, G1A belongs to the best of the industry, outperforming 86.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.93
WACC7.39%
2.3 Liquidity
- G1A has a Current Ratio of 1.02. This is a normal value and indicates that G1A is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of G1A (1.02) is worse than 80.87% of its industry peers.
- G1A has a Quick Ratio of 1.02. This is a bad value and indicates that G1A is not financially healthy enough and could expect problems in meeting its short term obligations.
- G1A's Quick ratio of 0.68 is on the low side compared to the rest of the industry. G1A is outperformed by 78.26% of its industry peers.
- The current and quick ratio evaluation for G1A is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.77% over the past year.
- G1A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.91% yearly.
- G1A shows a small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
- The Revenue has been growing slightly by 2.13% on average over the past years.
EPS 1Y (TTM)3.77%
EPS 3Y8.92%
EPS 5Y17.91%
EPS Q2Q%5.56%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y4.86%
Revenue growth 5Y2.13%
Sales Q2Q%1.2%
3.2 Future
- G1A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.91% yearly.
- Based on estimates for the next years, G1A will show a small growth in Revenue. The Revenue will grow by 4.51% on average per year.
EPS Next Y11.34%
EPS Next 2Y11.49%
EPS Next 3Y10.84%
EPS Next 5Y12.91%
Revenue Next Year2.8%
Revenue Next 2Y3.78%
Revenue Next 3Y4.09%
Revenue Next 5Y4.51%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.00 indicates a rather expensive valuation of G1A.
- G1A's Price/Earnings ratio is a bit cheaper when compared to the industry. G1A is cheaper than 61.74% of the companies in the same industry.
- G1A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.32.
- Based on the Price/Forward Earnings ratio of 18.37, the valuation of G1A can be described as rather expensive.
- G1A's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. G1A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 18.37 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as G1A.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of G1A is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.36 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of G1A may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)1.23
EPS Next 2Y11.49%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
- G1A has a Yearly Dividend Yield of 1.87%.
- Compared to an average industry Dividend Yield of 1.50, G1A pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, G1A has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
- The dividend of G1A has a limited annual growth rate of 3.38%.
Dividend Growth(5Y)3.38%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- G1A pays out 47.04% of its income as dividend. This is a bit on the high side, but may be sustainable.
- G1A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.04%
EPS Next 2Y11.49%
EPS Next 3Y10.84%
GEA GROUP AG / G1A.DE FAQ
Can you provide the ChartMill fundamental rating for GEA GROUP AG?
ChartMill assigns a fundamental rating of 6 / 10 to G1A.DE.
Can you provide the valuation status for GEA GROUP AG?
ChartMill assigns a valuation rating of 3 / 10 to GEA GROUP AG (G1A.DE). This can be considered as Overvalued.
Can you provide the profitability details for GEA GROUP AG?
GEA GROUP AG (G1A.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for G1A stock?
The Price/Earnings (PE) ratio for GEA GROUP AG (G1A.DE) is 22 and the Price/Book (PB) ratio is 4.41.
How sustainable is the dividend of GEA GROUP AG (G1A.DE) stock?
The dividend rating of GEA GROUP AG (G1A.DE) is 5 / 10 and the dividend payout ratio is 47.04%.