SWX:GAV

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

GAV

-1.2%

CH Electrical

-0.2%

CH Market


1 Year Return

-8.8%

GAV

14.3%

CH Electrical

16.2%

CH Market

Return vs Industry: GAV underperformed the Swiss Electrical industry which returned 14.3% over the past year.

Return vs Market: GAV underperformed the Swiss Market which returned 16.2% over the past year.


Shareholder returns

GAVIndustryMarket
7 Day-0.8%-1.2%-0.2%
30 Day-3.1%0.2%1.7%
90 Day-2.7%7.2%6.0%
1 Year-4.6%-8.8%18.8%14.3%21.8%16.2%
3 Year2.2%-9.8%15.3%3.7%40.6%23.4%
5 Year45.3%15.5%36.4%14.1%44.9%21.9%

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?

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GAV (CHF249) is trading below our estimate of fair value (CHF298.07)

Significantly Below Fair Value: GAV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GAV is good value based on its PE Ratio (18.8x) compared to the Electrical industry average (23.6x).

PE vs Market: GAV is good value based on its PE Ratio (18.8x) compared to the Swiss market (21.1x).


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 (2x) compared to the CH Electrical industry average (2.1x).


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?

3.5%

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 (-0.6%).

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 (3.5% per year) is forecast to grow faster than the Swiss market (3.3% per year).

High Growth Revenue: GAV's revenue (3.5% 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 (11.3%).


Next Steps

Past Performance

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

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAV has high quality earnings.

Growing Profit Margin: GAV's current net profit margins (6.1%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: GAV's earnings have declined by -4.8% per year over the past 5 years.

Accelerating Growth: GAV's earnings growth over the past year (5%) exceeds its 5-year average (-4.8% per year).

Earnings vs Industry: GAV earnings growth over the past year (5%) exceeded the Electrical industry 3.3%.


Return on Equity

High ROE: GAV's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Carlo Gavazzi Holding's financial position?


Financial Position Analysis

Short Term Liabilities: GAV's short term assets (CHF101.6M) exceed its short term liabilities (CHF27.7M).

Long Term Liabilities: GAV's short term assets (CHF101.6M) exceed its long term liabilities (CHF13.4M).


Debt to Equity History and Analysis

Debt Level: GAV is debt free.

Reducing Debt: GAV has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.

Debt Coverage: GAV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GAV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GAV has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GAV's debt is covered by short term assets.


Next Steps

Dividend

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

4.82%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.7%markettop25%3.4%industryaverage2.4%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: GAV's dividend (4.82%) is higher than the bottom 25% of dividend payers in the Swiss market (1.74%).

High Dividend: GAV's dividend (4.82%) is in the top 25% of dividend payers in the Swiss market (3.38%)


Stability and Growth of Payments

Stable Dividend: GAV's dividends per share have been stable in the past 10 years.

Growing Dividend: GAV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.8%), GAV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GAV's dividends in 3 years are not forecast to be well covered by earnings (91.5% payout ratio).


Next Steps

Management

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

10.7yrs

Average management tenure


CEO

Vittorio Rossi 0

10.7yrs

Tenure

CHF700,000

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 during 20 years with the Siemens Group u ...


CEO Compensation Analysis

Compensation vs Market: Vittorio's total compensation ($USD715.56K) is about average for companies of similar size in the Swiss market ($USD823.03K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Goldstein
Chief Financial Officer12.6yrsCHF233.00kno data
Vittorio Rossi
Chief Executive Officer of Automation Components Business Unit10.7yrsCHF700.00kno data
Rolf Schläpfer
Head of External Corporate Communications & Investor Relations0yrsno datano data
Raoul Bussmann
Secretary to the Board10.6yrsno datano data

10.7yrs

Average Tenure

Experienced Management: GAV's management team is seasoned and experienced (10.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Hirschi
Director9.6yrsCHF177.00kno data
Federico Foglia
Director16.1yrsCHF77.00k0.13% CHF226.8k
Stefano Trovati
Vice Chairman0yrsCHF154.00kno data
Valeria Gavazzi
Chairman10.6yrsno data41.47% CHF73.4m

10.6yrs

Average Tenure

50yo

Average Age

Experienced Board: GAV's board of directors are seasoned and experienced ( 10.6 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: CHF176.967m
  • 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 industrial and building automation markets. The company’s products include sensors, monitoring relays, timers, energy management systems, solid state relays, electronic motor controllers, safety devices, and fieldbus systems. It also designs and manufactures signaling equipment and safety relays for the railways market. The company offers its products to original equipment manufacturers of packaging machines, plastic injection molding machines, agriculture machines, food and beverage production, conveying and material handling equipment, door and entrance control systems, lifts, and escalators, as well as heating, ventilation, and air conditioning devices. It markets its products through a network of sales companies and independent distributors, as well as through system integrators in Europe, the Middle East, Africa, North America, and the Asia-Pacific. Carlo Gavazzi Holding AG was founded in 1931 and is headquartered in Steinhausen, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 20:47
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.