Carlo Gavazzi Holding (SWX:GAV) - Share price, News & Analysis

GAV fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	5/6

GAV Stock Overview

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

Rewards

Price-To-Earnings ratio (10.2x) is below the Swiss market (17.8x)

Earnings grew by 241.5% over the past year

Risk Analysis

Unstable dividend track record

Carlo Gavazzi Holding Competitors

Unimicron Technology

TWSE:3037

NT$314.2b

Benchmark Electronics

NYSE:BHE

US$843.5m

Neways Electronics International

ENXTAM:NEWAY

€159.5m

Cicor Technologies

SWX:CICN

CHF160.9m

Price History & Performance

Summary of all time highs, changes and price drops for Carlo Gavazzi Holding
Historical stock prices
Current Share Price	CHF290.00
52 Week High	CHF306.00
52 Week Low	CHF217.00
Beta	0.56
1 Month Change	-1.70%
3 Month Change	7.81%
1 Year Change	32.42%
3 Year Change	8.61%
5 Year Change	-8.81%
Change since IPO	346.15%

Recent News & Updates

Apr 13

Here's What's Concerning About Carlo Gavazzi Holding's (VTX:GAV) Returns On Capital

To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications...

Shareholder Returns

	GAV	CH Electrical	CH Market
7D	1.8%	-1.0%	-2.5%
1Y	32.4%	-4.3%	-2.1%

Return vs Industry: GAV exceeded the Swiss Electrical industry which returned -4.3% over the past year.

Return vs Market: GAV exceeded the Swiss Market which returned -2.1% over the past year.

Price Volatility

Is GAV's price volatile compared to industry and market?
GAV volatility
GAV Average Weekly Movement	3.8%
Electrical Industry Average Movement	4.5%
Market Average Movement	4.9%
10% most volatile stocks in CH Market	8.5%
10% least volatile stocks in CH Market	2.5%

Stable Share Price: GAV is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GAV's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1931	1,033	Vittorio Rossi	https://www.carlogavazzi.com

Carlo Gavazzi Holding AG, together with its subsidiaries, designs, manufactures, and markets electronic control components for building and industrial automation markets. Its products include sensors, monitoring relays, timers, energy management systems, solid state relays, electronic motor controllers, safety devices, and fieldbus systems. The company also designs and manufactures signaling equipment and safety relays for the railways market.

Carlo Gavazzi Holding Fundamentals Summary

How do Carlo Gavazzi Holding's earnings and revenue compare to its market cap?
GAV fundamental statistics
Market Cap	CHF206.11m
Earnings (TTM)	CHF20.17m
Revenue (TTM)	CHF171.53m

10.2x

P/E Ratio

1.2x

P/S Ratio

Is GAV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GAV income statement (TTM)
Revenue	CHF171.53m
Cost of Revenue	CHF78.38m
Gross Profit	CHF93.15m
Other Expenses	CHF72.98m
Earnings	CHF20.17m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jun 23, 2022

Earnings per share (EPS)	28.38
Gross Margin	54.31%
Net Profit Margin	11.76%
Debt/Equity Ratio	0%

How did GAV perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

42%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

10.22x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: GAV (CHF290) is trading above our estimate of fair value (CHF257.82)

Significantly Below Fair Value: GAV is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: GAV is good value based on its Price-To-Earnings Ratio (10.2x) compared to the Swiss Electrical industry average (11x).

PE vs Market: GAV is good value based on its Price-To-Earnings Ratio (10.2x) compared to the Swiss market (17.8x).

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's Price-To-Book Ratio (1.9x) is in line with the CH Electrical industry average.

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.9%

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 (-0.3%).

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 (0.9% per year) is forecast to grow slower than the Swiss market (4.3% per year).

High Growth Revenue: GAV's revenue (0.9% 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 (18.2%).

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GAV has high quality earnings.

Growing Profit Margin: GAV's current net profit margins (11.8%) are higher than last year (4.2%).

Past Earnings Growth Analysis

Earnings Trend: GAV's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: GAV's earnings growth over the past year (241.5%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: GAV earnings growth over the past year (241.5%) exceeded the Electrical industry 26%.

Return on Equity

High ROE: GAV's Return on Equity (18.8%) is considered low.

Financial Health

How is Carlo Gavazzi Holding's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GAV's short term assets (CHF129.2M) exceed its short term liabilities (CHF37.2M).

Long Term Liabilities: GAV's short term assets (CHF129.2M) exceed its long term liabilities (CHF13.2M).

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 0.1%.

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

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GAV's dividend (4.14%) is higher than the bottom 25% of dividend payers in the Swiss market (1.95%).

High Dividend: GAV's dividend (4.14%) is in the top 25% of dividend payers in the Swiss market (3.92%)

Stability and Growth of Payments

Stable Dividend: GAV's dividend payments have been volatile in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.3%), GAV's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43.9%), GAV's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

12.9yrs

Average management tenure

CEO

Vittorio Rossi (63 yo)

12.92yrs

Tenure

CHF763,000

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 ($USD792.79K) is about average for companies of similar size in the Swiss market ($USD770.67K).

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

Leadership Team

Experienced Management: GAV's management team is seasoned and experienced (12.9 years average tenure).

Board Members

Experienced Board: GAV's board of directors are seasoned and experienced ( 13.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31