SWX:GAV

Stock Analysis Report

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Executive Summary

Carlo Gavazzi Holding AG, together with its subsidiaries, designs, manufactures, and markets electronic control components for building and industrial automation markets. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Carlo Gavazzi Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GAV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

GAV

-0.03%

CH Electrical

1.1%

CH Market


1 Year Return

-41.7%

GAV

17.7%

CH Electrical

4.4%

CH Market

Return vs Industry: GAV underperformed the Swiss Electrical industry which returned 17.7% over the past year.

Return vs Market: GAV underperformed the Swiss Market which returned 4.4% over the past year.


Shareholder returns

GAVIndustryMarket
7 Day-2.3%-0.03%1.1%
30 Day-1.6%1.3%2.8%
90 Day-16.1%14.4%4.3%
1 Year-41.7%-41.7%23.1%17.7%8.0%4.4%
3 Year-53.4%-57.1%11.5%-1.0%23.0%8.1%
5 Year-14.7%-28.5%69.3%39.9%46.2%21.8%

Price Volatility Vs. Market

How volatile is Carlo Gavazzi Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Carlo Gavazzi Holding undervalued compared to its fair value and its price relative to the market?

22.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GAV (CHF151.5) is trading below our estimate of fair value (CHF195.34)

Significantly Below Fair Value: GAV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GAV is good value based on its PE Ratio (17.7x) compared to the XE Electrical industry average (26.4x).

PE vs Market: GAV is good value based on its PE Ratio (17.7x) compared to the Swiss market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GAV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GAV is good value based on its PB Ratio (1.2x) compared to the CH Electrical industry average (1.6x).


Next Steps

Future Growth

How is Carlo Gavazzi Holding forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GAV's forecast earnings growth is above the savings rate (-0.2%).

Earnings vs Market: Insufficient data to determine if GAV's earnings are forecast to grow faster than the Swiss market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GAV's revenue (3.8% per year) is forecast to grow slower than the Swiss market (4.6% per year).

High Growth Revenue: GAV's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GAV's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Carlo Gavazzi Holding performed over the past 5 years?

-7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAV has high quality earnings.

Growing Profit Margin: GAV's current net profit margins (4.1%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: GAV's earnings have declined by 7.5% per year over the past 5 years.

Accelerating Growth: GAV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GAV had negative earnings growth (-43.2%) over the past year, making it difficult to compare to the Electrical industry average (-11%).


Return on Equity

High ROE: GAV's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is Carlo Gavazzi Holding's financial position?


Financial Position Analysis

Short Term Liabilities: GAV's short term assets (CHF102.8M) exceed its short term liabilities (CHF28.5M).

Long Term Liabilities: GAV's short term assets (CHF102.8M) exceed its long term liabilities (CHF12.8M).


Debt to Equity History and Analysis

Debt Level: GAV's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: GAV's debt to equity ratio has increased from 0.9% to 1.6% over the past 5 years.

Debt Coverage: GAV's debt is well covered by operating cash flow (1029.2%).

Interest Coverage: GAV's interest payments on its debt are well covered by EBIT (56.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Carlo Gavazzi Holding current dividend yield, its reliability and sustainability?

5.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GAV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GAV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GAV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GAV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GAV is not paying a notable dividend for the Swiss market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GAV's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.2yrs

Average management tenure


CEO

Vittorio Rossi (62 yo)

11.25yrs

Tenure

CHF764,000

Compensation

Mr. Vittorio Rossi has been the Chief Executive Officer of Automation Components Business at Carlo Gavazzi Holding AG since June 2009. Mr. Rossi professional career from 1985 until 2002 with the Siemens Gr ...


CEO Compensation Analysis

Compensation vs Market: Vittorio's total compensation ($USD840.38K) is above average for companies of similar size in the Swiss market ($USD483.77K).

Compensation vs Earnings: Vittorio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lorenzo Trezzini
Chief Financial Officer0.50yrCHF79.00kno data
Vittorio Rossi
Chief Executive Officer of Automation Components Business Unit11.25yrsCHF764.00kno data
Rolf Schlapfer
Head of External Corporate Communications & Investor Relationsno datano datano data
Raoul Bussmann
Secretary to the Board11.17yrsno datano data

11.2yrs

Average Tenure

62yo

Average Age

Experienced Management: GAV's management team is seasoned and experienced (11.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Hirschi
Director10.17yrsCHF187.00kno data
Federico Foglia
Director16.67yrsCHF75.00k0.13%
CHF 138.0k
Stefano Trovati
Vice Chairmanno dataCHF164.00kno data
Valeria Gavazzi
Chairman11.17yrsno data41.47%
CHF 44.6m

11.2yrs

Average Tenure

50yo

Average Age

Experienced Board: GAV's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Carlo Gavazzi Holding AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carlo Gavazzi Holding AG
  • Ticker: GAV
  • Exchange: SWX
  • Founded: 1931
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: CHF107.673m
  • Shares outstanding: 710.71k
  • Website: https://www.carlogavazzi.com

Number of Employees


Location

  • Carlo Gavazzi Holding AG
  • Sumpfstrasse 3
  • Steinhausen
  • Zug
  • 6312
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GAVSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
0QL5LSE (London Stock Exchange)YesBearer SharesGBCHFJan 1992
D9NDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992

Biography

Carlo Gavazzi Holding AG, together with its subsidiaries, designs, manufactures, and markets electronic control components for building and industrial automation markets. The company’s products include sen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 04:22
End of Day Share Price2020/09/18 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.