GFT TECHNOLOGIES SE (GFT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GFT - DE0005800601 - Common Stock
20.9 EUR
-0.25 (-1.18%)
We assign a fundamental rating of 5 out of 10 to GFT. GFT was compared to 76 industry peers in the IT Services industry. GFT has only an average score on both its financial health and profitability. GFT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- GFT had positive earnings in the past year.
- GFT had a positive operating cash flow in the past year.
- Each year in the past 5 years GFT has been profitable.
- In the past 5 years GFT always reported a positive cash flow from operatings.
1.2 Ratios
- GFT's Return On Assets of 6.27% is fine compared to the rest of the industry. GFT outperforms 63.16% of its industry peers.
- GFT's Return On Equity of 15.41% is fine compared to the rest of the industry. GFT outperforms 71.05% of its industry peers.
- GFT has a Return On Invested Capital of 11.00%. This is in the better half of the industry: GFT outperforms 67.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GFT is significantly below the industry average of 25.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 15.41% | ||
| ROIC | 11% |
ROA(3y)8.34%
ROA(5y)6.8%
ROE(3y)20.07%
ROE(5y)17.31%
ROIC(3y)14.88%
ROIC(5y)12.57%
1.3 Margins
- With a Profit Margin value of 4.39%, GFT perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
- GFT's Profit Margin has improved in the last couple of years.
- GFT has a Operating Margin (6.42%) which is in line with its industry peers.
- GFT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 87.39%, GFT is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- GFT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.42% | ||
| PM (TTM) | 4.39% | ||
| GM | 87.39% |
OM growth 3Y3.24%
OM growth 5Y7.4%
PM growth 3Y0.37%
PM growth 5Y10.88%
GM growth 3Y0.71%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
- GFT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for GFT remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, GFT has about the same amount of shares outstanding.
- Compared to 1 year ago, GFT has a worse debt to assets ratio.
2.2 Solvency
- GFT has an Altman-Z score of 3.20. This indicates that GFT is financially healthy and has little risk of bankruptcy at the moment.
- GFT has a Altman-Z score of 3.20. This is in the better half of the industry: GFT outperforms 63.16% of its industry peers.
- The Debt to FCF ratio of GFT is 2.69, which is a good value as it means it would take GFT, 2.69 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.69, GFT is in the better half of the industry, outperforming 67.11% of the companies in the same industry.
- A Debt/Equity ratio of 0.37 indicates that GFT is not too dependend on debt financing.
- GFT has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.89
WACC12.36%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that GFT should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.18, GFT perfoms like the industry average, outperforming 43.42% of the companies in the same industry.
- GFT has a Quick Ratio of 1.18. This is a normal value and indicates that GFT is financially healthy and should not expect problems in meeting its short term obligations.
- GFT has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The earnings per share for GFT have decreased strongly by -26.04% in the last year.
- GFT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.75% yearly.
- GFT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.28%.
- Measured over the past years, GFT shows a quite strong growth in Revenue. The Revenue has been growing by 15.21% on average per year.
EPS 1Y (TTM)-26.04%
EPS 3Y15.86%
EPS 5Y27.75%
EPS Q2Q%-27.28%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y15.44%
Revenue growth 5Y15.21%
Sales Q2Q%-1%
3.2 Future
- GFT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.49% yearly.
- Based on estimates for the next years, GFT will show a small growth in Revenue. The Revenue will grow by 4.75% on average per year.
EPS Next Y-21.56%
EPS Next 2Y-4.11%
EPS Next 3Y0.49%
EPS Next 5YN/A
Revenue Next Year1.93%
Revenue Next 2Y3.44%
Revenue Next 3Y4.39%
Revenue Next 5Y4.75%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- GFT is valuated correctly with a Price/Earnings ratio of 15.60.
- Based on the Price/Earnings ratio, GFT is valued a bit cheaper than 73.68% of the companies in the same industry.
- GFT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- Based on the Price/Forward Earnings ratio of 11.16, the valuation of GFT can be described as reasonable.
- 80.26% of the companies in the same industry are more expensive than GFT, based on the Price/Forward Earnings ratio.
- GFT is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
- GFT's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, GFT is valued cheaply inside the industry as 80.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.64 | ||
| EV/EBITDA | 8.64 |
4.3 Compensation for Growth
- GFT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-4.11%
EPS Next 3Y0.49%
5. Dividend
5.1 Amount
- GFT has a Yearly Dividend Yield of 2.39%.
- GFT's Dividend Yield is a higher than the industry average which is at 2.10.
- GFT's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
- The dividend of GFT is nicely growing with an annual growth rate of 10.76%!
Dividend Growth(5Y)10.76%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- 33.68% of the earnings are spent on dividend by GFT. This is a low number and sustainable payout ratio.
- The dividend of GFT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.68%
EPS Next 2Y-4.11%
EPS Next 3Y0.49%
GFT TECHNOLOGIES SE / GFT.DE FAQ
Can you provide the ChartMill fundamental rating for GFT TECHNOLOGIES SE?
ChartMill assigns a fundamental rating of 5 / 10 to GFT.DE.
Can you provide the valuation status for GFT TECHNOLOGIES SE?
ChartMill assigns a valuation rating of 6 / 10 to GFT TECHNOLOGIES SE (GFT.DE). This can be considered as Fairly Valued.
How profitable is GFT TECHNOLOGIES SE (GFT.DE) stock?
GFT TECHNOLOGIES SE (GFT.DE) has a profitability rating of 6 / 10.
What is the earnings growth outlook for GFT TECHNOLOGIES SE?
The Earnings per Share (EPS) of GFT TECHNOLOGIES SE (GFT.DE) is expected to decline by -21.56% in the next year.
How sustainable is the dividend of GFT TECHNOLOGIES SE (GFT.DE) stock?
The dividend rating of GFT TECHNOLOGIES SE (GFT.DE) is 6 / 10 and the dividend payout ratio is 33.68%.