Georg Fischer (SWX:GF) - Share price, News & Analysis

Q: What is the Fair Price of GF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GF (CHF58.1) is trading below our estimate of [[fair value]] (CHF96.45)

GF fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	2/6

GF Stock Overview

Georg Fischer AG provides piping systems, and casting and machining solutions in Europe, the Americas, Asia, and internationally.

Rewards

Trading at 39.8% below our estimate of its fair value

Earnings are forecast to grow 13.19% per year

Earnings grew by 21.6% over the past year

Risk Analysis

No risks detected for GF from our risk checks.

Georg Fischer Competitors

SFS Group

SWX:SFSN

CHF4.1b

Dätwyler Holding

SWX:DAE

CHF4.0b

OC Oerlikon

SWX:OERL

CHF2.5b

Interroll Holding

SWX:INRN

CHF2.1b

Price History & Performance

Summary of all time highs, changes and price drops for Georg Fischer
Historical stock prices
Current Share Price	CHF58.10
52 Week High	CHF77.45
52 Week Low	CHF45.86
Beta	1.29
1 Month Change	18.81%
3 Month Change	13.04%
1 Year Change	-23.55%
3 Year Change	45.80%
5 Year Change	5.64%
Change since IPO	604.24%

Recent News & Updates

Jul 24

Does Georg Fischer (VTX:GF) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jun 06

Is It Time To Consider Buying Georg Fischer AG (VTX:GF)?

Georg Fischer AG ( VTX:GF ), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in...

Shareholder Returns

	GF	CH Machinery	CH Market
7D	2.3%	0.8%	0.3%
1Y	-23.6%	-31.7%	-12.5%

Return vs Industry: GF exceeded the Swiss Machinery industry which returned -31.7% over the past year.

Return vs Market: GF underperformed the Swiss Market which returned -12.5% over the past year.

Price Volatility

Is GF's price volatile compared to industry and market?
GF volatility
GF Average Weekly Movement	5.5%
Machinery Industry Average Movement	5.2%
Market Average Movement	4.5%
10% most volatile stocks in CH Market	7.9%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: GF is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GF's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1802	14,957	Andreas Muller	https://www.georgfischer.com

Georg Fischer AG provides piping systems, and casting and machining solutions in Europe, the Americas, Asia, and internationally. The company offers plastic and metal piping systems for the transportation of water, abrasive and aggressive liquids, and gases, as well as corresponding services for industry, utilities, and building services sectors; and fittings, valves, pipes, automation, and jointing technologies for various water cycle applications. It also provides lightweight components for mobility and energy industries.

Georg Fischer Fundamentals Summary

How do Georg Fischer's earnings and revenue compare to its market cap?
GF fundamental statistics
Market Cap	CHF4.75b
Earnings (TTM)	CHF231.00m
Revenue (TTM)	CHF3.88b

20.6x

P/E Ratio

1.2x

P/S Ratio

Is GF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GF income statement (TTM)
Revenue	CHF3.88b
Cost of Revenue	CHF2.36b
Gross Profit	CHF1.52b
Other Expenses	CHF1.29b
Earnings	CHF231.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Mar 01, 2023

Earnings per share (EPS)	2.82
Gross Margin	39.29%
Net Profit Margin	5.96%
Debt/Equity Ratio	57.4%

How did GF perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

35%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is GF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GF?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GF. This is calculated by dividing GF's market cap by their current preferred multiple.
What is GF's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CHF4.75b

GF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	10.9x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does GF's PE Ratio compare to its peers?

GF PE Ratio vs Peers

The above table shows the PE ratio for GF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	22.5x
SFSN SFS Group	17x	5.5%	CHF4.1b
DAE Dätwyler Holding	32.4x	16.2%	CHF4.0b
OERL OC Oerlikon	14.4x	4.9%	CHF2.5b
INRN Interroll Holding	26.3x	7.1%	CHF2.1b
GF Georg Fischer	20.6x	13.2%	CHF4.8b

Price-To-Earnings vs Peers: GF is good value based on its Price-To-Earnings Ratio (20.6x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does GF's PE Ratio compare vs other companies in the CH Machinery Industry?

Price-To-Earnings vs Industry: GF is good value based on its Price-To-Earnings Ratio (20.6x) compared to the Swiss Machinery industry average (22.9x)

Price to Earnings Ratio vs Fair Ratio

What is GF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.6x
Fair PE Ratio	28.9x

Price-To-Earnings vs Fair Ratio: GF is good value based on its Price-To-Earnings Ratio (20.6x) compared to the estimated Fair Price-To-Earnings Ratio (28.9x).

Share Price vs Fair Value

What is the Fair Price of GF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GF (CHF58.1) is trading below our estimate of fair value (CHF96.45)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Georg Fischer forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

13.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GF's forecast earnings growth (13.2% per year) is above the savings rate (-0.2%).

Earnings vs Market: GF's earnings (13.2% per year) are forecast to grow faster than the Swiss market (8.8% per year).

High Growth Earnings: GF's earnings are forecast to grow, but not significantly.

Revenue vs Market: GF's revenue (3.5% per year) is forecast to grow slower than the Swiss market (4.3% per year).

High Growth Revenue: GF'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: GF's Return on Equity is forecast to be low in 3 years time (16.9%).

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Past Performance

How has Georg Fischer performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-8.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GF has high quality earnings.

Growing Profit Margin: GF's current net profit margins (6%) are higher than last year (5.4%).

Past Earnings Growth Analysis

Earnings Trend: GF's earnings have declined by 8.9% per year over the past 5 years.

Accelerating Growth: GF's earnings growth over the past year (21.6%) exceeds its 5-year average (-8.9% per year).

Earnings vs Industry: GF earnings growth over the past year (21.6%) exceeded the Machinery industry 17.6%.

Return on Equity

High ROE: GF's Return on Equity (14.3%) is considered low.

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Financial Health

How is Georg Fischer'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: GF's short term assets (CHF2.6B) exceed its short term liabilities (CHF1.3B).

Long Term Liabilities: GF's short term assets (CHF2.6B) exceed its long term liabilities (CHF825.0M).

Debt to Equity History and Analysis

Debt Level: GF's net debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: GF's debt to equity ratio has reduced from 65.3% to 57.4% over the past 5 years.

Debt Coverage: GF's debt is well covered by operating cash flow (22.3%).

Interest Coverage: GF's interest payments on its debt are well covered by EBIT (14.5x coverage).

Balance Sheet

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Dividend

What is Georg Fischer current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.72%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GF's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.81%).

High Dividend: GF's dividend (1.72%) is low compared to the top 25% of dividend payers in the Swiss market (3.9%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.4%), GF's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (160.5%), GF's dividend payments are not well covered by cash flows.

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Management

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

3.3yrs

Average management tenure

CEO

Andreas Muller (52 yo)

3.33yrs

Tenure

CHF3,142,000

Compensation

Mr. Andreas Muller has been Chief Executive Officer, President and Head of Corporate Development at Georg Fischer AG since April 17, 2019. He was the Chief Financial Officer of Georg Fischer AG since Janu...

CEO Compensation Analysis

Compensation vs Market: Andreas's total compensation ($USD3.33M) is above average for companies of similar size in the Swiss market ($USD2.31M).

Compensation vs Earnings: Andreas's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: GF's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: GF's board of directors are considered experienced (6.9 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	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31