GEA GROUP AG (G1A.DE) Stock Fundamental Analysis
FRA:G1A - Deutsche Boerse Ag - DE0006602006 - Common Stock - Currency: EUR
G1A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 109 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
G1A had positive earnings in the past year.
In the past year G1A had a positive cash flow from operations.
Each year in the past 5 years G1A has been profitable.
Each year in the past 5 years G1A had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.81%, G1A belongs to the best of the industry, outperforming 87.16% of the companies in the same industry.
G1A's Return On Equity of 16.13% is amongst the best of the industry. G1A outperforms 85.32% of its industry peers.
G1A has a better Return On Invested Capital (13.19%) than 90.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for G1A is above the industry average of 8.05%.
The 3 year average ROIC (11.87%) for G1A is below the current ROIC(13.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.81% | ||
| ROE | 16.13% | ||
| ROIC | 13.19% |
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
G1A's Profit Margin of 7.15% is amongst the best of the industry. G1A outperforms 82.57% of its industry peers.
G1A's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.45%, G1A is doing good in the industry, outperforming 78.90% of the companies in the same industry.
In the last couple of years the Operating Margin of G1A has grown nicely.
G1A has a Gross Margin (36.34%) which is comparable to the rest of the industry.
G1A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.45% | ||
| PM (TTM) | 7.15% | ||
| GM | 36.34% |
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.
Compared to 1 year ago, G1A has less shares outstanding
Compared to 5 years ago, G1A has less shares outstanding
The debt/assets ratio for G1A is higher compared to a year ago.
2.2 Solvency
G1A has an Altman-Z score of 3.24. This indicates that G1A is financially healthy and has little risk of bankruptcy at the moment.
G1A has a Altman-Z score of 3.24. This is in the better half of the industry: G1A outperforms 78.90% of its industry peers.
The Debt to FCF ratio of G1A is 0.63, which is an excellent value as it means it would take G1A, only 0.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of G1A (0.63) is better than 90.83% of its industry peers.
G1A has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.05, G1A belongs to the best of the industry, outperforming 87.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.86
WACC7.1%
2.3 Liquidity
A Current Ratio of 1.08 indicates that G1A should not have too much problems paying its short term obligations.
G1A has a Current ratio of 1.08. This is in the lower half of the industry: G1A underperforms 79.82% of its industry peers.
A Quick Ratio of 0.73 indicates that G1A may have some problems paying its short term obligations.
The Quick ratio of G1A (0.73) is worse than 76.15% 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 | 1.08 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
G1A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.68%.
The Earnings Per Share has been growing by 17.91% on average over the past years. This is quite good.
Looking at the last year, G1A shows a small growth in Revenue. The Revenue has grown by 1.79% in the last year.
The Revenue has been growing slightly by 2.13% on average over the past years.
EPS 1Y (TTM)2.68%
EPS 3Y8.92%
EPS 5Y17.91%
EPS Q2Q%5.08%
Revenue 1Y (TTM)1.79%
Revenue growth 3Y4.86%
Revenue growth 5Y2.13%
Sales Q2Q%1.39%
3.2 Future
Based on estimates for the next years, G1A will show a small growth in Earnings Per Share. The EPS will grow by 6.98% on average per year.
G1A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.88% yearly.
EPS Next Y7.11%
EPS Next 2Y9.93%
EPS Next 3Y9.95%
EPS Next 5Y6.98%
Revenue Next Year3.31%
Revenue Next 2Y3.85%
Revenue Next 3Y3.99%
Revenue Next 5Y3.88%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
G1A is valuated rather expensively with a Price/Earnings ratio of 22.21.
G1A's Price/Earnings ratio is in line with the industry average.
G1A is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.59 indicates a rather expensive valuation of G1A.
G1A's Price/Forward Earnings ratio is in line with the industry average.
G1A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of G1A indicates a slightly more expensive valuation: G1A is more expensive than 62.39% of the companies listed in the same industry.
G1A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.68 | ||
| EV/EBITDA | 12.09 |
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)3.12
PEG (5Y)1.24
EPS Next 2Y9.93%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
G1A has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.75, G1A pays a bit more dividend than its industry peers.
G1A's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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 43.35% 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.
DP43.35%
EPS Next 2Y9.93%
EPS Next 3Y9.95%
FRA:G1A (6/4/2025, 3:30:01 PM)
59.525
+0.17 (+0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners67.22%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap9.69B
Analysts75.65
Price Target57.14 (-4.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend1
Dividend Growth(5Y)3.38%
DP43.35%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.51%
Min EPS beat(2)-14.23%
Max EPS beat(2)11.21%
EPS beat(4)2
Avg EPS beat(4)0.08%
Min EPS beat(4)-14.23%
Max EPS beat(4)11.21%
EPS beat(8)4
Avg EPS beat(8)0.04%
EPS beat(12)8
Avg EPS beat(12)9.85%
EPS beat(16)12
Avg EPS beat(16)13.05%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)2.01%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)2.01%
Revenue beat(8)1
Avg Revenue beat(8)-2.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.78%
Revenue beat(16)5
Avg Revenue beat(16)-1.17%
PT rev (1m)-0.4%
PT rev (3m)5.02%
EPS NQ rev (1m)45.83%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.73%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 18.59 | ||
| P/S | 1.78 | ||
| P/FCF | 19.68 | ||
| P/OCF | 13.18 | ||
| P/B | 4.02 | ||
| P/tB | 18.24 | ||
| EV/EBITDA | 12.09 |
EPS(TTM)2.68
EY4.5%
EPS(NY)3.2
Fwd EY5.38%
FCF(TTM)3.02
FCFY5.08%
OCF(TTM)4.52
OCFY7.59%
SpS33.41
BVpS14.8
TBVpS3.26
PEG (NY)3.12
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.81% | ||
| ROE | 16.13% | ||
| ROCE | 16.81% | ||
| ROIC | 13.19% | ||
| ROICexc | 14.96% | ||
| ROICexgc | 40.42% | ||
| OM | 10.45% | ||
| PM (TTM) | 7.15% | ||
| GM | 36.34% | ||
| FCFM | 9.05% |
ROA(3y)6.59%
ROA(5y)5.33%
ROE(3y)16.62%
ROE(5y)13.92%
ROIC(3y)11.87%
ROIC(5y)9.97%
ROICexc(3y)14.89%
ROICexc(5y)13.41%
ROICexgc(3y)48.54%
ROICexgc(5y)N/A
ROCE(3y)15.12%
ROCE(5y)12.69%
ROICexcg growth 3Y3.45%
ROICexcg growth 5Y29.85%
ROICexc growth 3Y8.52%
ROICexc growth 5Y31.86%
OM growth 3Y6.05%
OM growth 5Y29.26%
PM growth 3Y3.05%
PM growth 5YN/A
GM growth 3Y2.65%
GM growth 5Y4.49%
F-Score7
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 110.96% | ||
| Cap/Sales | 4.47% | ||
| Interest Coverage | 26.65 | ||
| Cash Conversion | 93.4% | ||
| Profit Quality | 126.63% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 3.24 |
F-Score7
WACC7.1%
ROIC/WACC1.86
Cap/Depr(3y)110.49%
Cap/Depr(5y)87.58%
Cap/Sales(3y)4.19%
Cap/Sales(5y)3.49%
Profit Quality(3y)88.9%
Profit Quality(5y)217.1%
High Growth Momentum
Growth
EPS 1Y (TTM)2.68%
EPS 3Y8.92%
EPS 5Y17.91%
EPS Q2Q%5.08%
EPS Next Y7.11%
EPS Next 2Y9.93%
EPS Next 3Y9.95%
EPS Next 5Y6.98%
Revenue 1Y (TTM)1.79%
Revenue growth 3Y4.86%
Revenue growth 5Y2.13%
Sales Q2Q%1.39%
Revenue Next Year3.31%
Revenue Next 2Y3.85%
Revenue Next 3Y3.99%
Revenue Next 5Y3.88%
EBIT growth 1Y9.1%
EBIT growth 3Y11.2%
EBIT growth 5Y32.01%
EBIT Next Year41.03%
EBIT Next 3Y17.22%
EBIT Next 5Y7.3%
FCF growth 1Y116.78%
FCF growth 3Y-5.03%
FCF growth 5Y6.76%
OCF growth 1Y69.58%
OCF growth 3Y1.36%
OCF growth 5Y8.24%