GEA Group (XTRA:G1A) - Share price, News & Analysis

Q: What is the Fair Price of G1A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

G1A (€33.9) is trading below our estimate of [[fair value]] (€74.28)

G1A fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	4/6
Financial Health	5/6
Dividends	5/6

G1A Stock Overview

GEA Group Aktiengesellschaft engages in the development and production of systems and components for the food processing industry worldwide.

Rewards

Trading at 54.4% below our estimate of its fair value

Earnings are forecast to grow 10.14% per year

Earnings grew by 169.8% over the past year

Pays a reliable dividend of 2.65%

Risk Analysis

No risks detected for G1A from our risk checks.

GEA Group Competitors

RATIONAL

XTRA:RAA

€6.3b

KUKA

XTRA:KU2

€3.3b

DMG MORI

XTRA:GIL

€3.2b

Krones

XTRA:KRN

€2.3b

Price History & Performance

Summary of all time highs, changes and price drops for GEA Group
Historical stock prices
Current Share Price	€33.90
52 Week High	€48.55
52 Week Low	€32.43
Beta	1.01
1 Month Change	-10.25%
3 Month Change	-12.36%
1 Year Change	-0.50%
3 Year Change	35.28%
5 Year Change	-7.49%
Change since IPO	-12.27%

Recent News & Updates

Apr 15

The Return Trends At GEA Group (ETR:G1A) Look Promising

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Mar 31

GEA Group (ETR:G1A) Could Easily Take On More Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

	G1A	DE Machinery	DE Market
7D	0.09%	-2.8%	-0.1%
1Y	-0.5%	-34.1%	-22.0%

Return vs Industry: G1A exceeded the German Machinery industry which returned -34.1% over the past year.

Return vs Market: G1A exceeded the German Market which returned -22% over the past year.

Price Volatility

Is G1A's price volatile compared to industry and market?
G1A volatility
G1A Average Weekly Movement	4.1%
Machinery Industry Average Movement	5.3%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.2%
10% least volatile stocks in DE Market	2.9%

Stable Share Price: G1A is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: G1A's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1881	19,226	Stefan Klebert	https://www.gea.com

GEA Group Aktiengesellschaft engages in the development and production of systems and components for the food processing industry worldwide. The company operates through five divisions: Separation & Flow Technologies, Liquid & Power Technologies, Food & Health Technologies, Farm Technologies, and Heating & Refrigeration Technologies. It provides separators, decanters, homogenizers, valves, and pumps; and process solutions for the dairy, food, beverage, chemical, and other industries.

GEA Group Fundamentals Summary

How do GEA Group's earnings and revenue compare to its market cap?
G1A fundamental statistics
Market Cap	€5.89b
Earnings (TTM)	€320.17m
Revenue (TTM)	€4.76b

18.8x

P/E Ratio

1.3x

P/S Ratio

Is G1A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
G1A income statement (TTM)
Revenue	€4.76b
Cost of Revenue	€3.18b
Gross Profit	€1.59b
Other Expenses	€1.27b
Earnings	€320.17m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	1.80
Gross Margin	33.33%
Net Profit Margin	6.72%
Debt/Equity Ratio	7.1%

How did G1A perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

50%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is G1A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for G1A?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for G1A. This is calculated by dividing G1A's market cap by their current preferred multiple.
What is G1A's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€5.89b

G1A 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	1.1x
Enterprise Value/EBITDA	12.3x
PEG Ratio	1.9x

Price to Earnings Ratio vs Peers

How does G1A's PE Ratio compare to its peers?

G1A PE Ratio vs Peers

The above table shows the PE ratio for G1A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	38.8x
RAA RATIONAL	48x	13.3%	€6.3b
KU2 KUKA	65.4x	n/a	€3.3b
GIL DMG MORI	27.8x	n/a	€3.2b
KRN Krones	15.6x	18.2%	€2.3b
G1A GEA Group	18.8x	10.1%	€5.9b

Forward PE

Price-To-Earnings vs Peers: G1A is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (38.8x).

Price to Earnings Ratio vs Industry

How does G1A's PE Ratio compare vs other companies in the DE Machinery Industry?

Price-To-Earnings vs Industry: G1A is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the German Machinery industry average (15.9x)

Price to Earnings Ratio vs Fair Ratio

What is G1A'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.

G1A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.8x
Fair PE Ratio	23.1x

Price-To-Earnings vs Fair Ratio: G1A is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).

Share Price vs Fair Value

What is the Fair Price of G1A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: G1A (€33.9) is trading below our estimate of fair value (€74.28)

Significantly Below Fair Value: G1A is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: G1A is poor value based on its PEG Ratio (1.9x)

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Future Growth

How is GEA Group forecast to perform in the next 1 to 3 years based on estimates from 19 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

10.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: G1A's forecast earnings growth (10.1% per year) is above the savings rate (-0.05%).

Earnings vs Market: G1A's earnings (10.1% per year) are forecast to grow faster than the German market (8.3% per year).

High Growth Earnings: G1A's earnings are forecast to grow, but not significantly.

Revenue vs Market: G1A's revenue (4.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: G1A's revenue (4.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: G1A's Return on Equity is forecast to be low in 3 years time (16.3%).

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Past Performance

How has GEA Group 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

-12.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: G1A has high quality earnings.

Growing Profit Margin: G1A's current net profit margins (6.7%) are higher than last year (2.6%).

Past Earnings Growth Analysis

Earnings Trend: G1A's earnings have declined by 12.5% per year over the past 5 years.

Accelerating Growth: G1A's earnings growth over the past year (169.8%) exceeds its 5-year average (-12.5% per year).

Earnings vs Industry: G1A earnings growth over the past year (169.8%) exceeded the Machinery industry 82.5%.

Return on Equity

High ROE: G1A's Return on Equity (14.6%) is considered low.

Discover strong past performing companies

Financial Health

How is GEA Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: G1A's short term assets (€2.9B) exceed its short term liabilities (€2.3B).

Long Term Liabilities: G1A's short term assets (€2.9B) exceed its long term liabilities (€1.3B).

Debt to Equity History and Analysis

Debt Level: G1A has more cash than its total debt.

Reducing Debt: G1A's debt to equity ratio has increased from 5.3% to 7.1% over the past 5 years.

Debt Coverage: G1A's debt is well covered by operating cash flow (400.8%).

Interest Coverage: G1A's interest payments on its debt are well covered by EBIT (16.9x coverage).

Balance Sheet

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Dividend

What is GEA Group 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

2.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: G1A's dividend (2.65%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: G1A's dividend (2.65%) is low compared to the top 25% of dividend payers in the German market (4.53%).

Stability and Growth of Payments

Stable Dividend: G1A's dividends per share have been stable in the past 10 years.

Growing Dividend: G1A's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (50.4%), G1A's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.4%), G1A'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?

3.3yrs

Average management tenure

CEO

Stefan Klebert (56 yo)

3.58yrs

Tenure

€3,411,557

Compensation

Mr. Stefan Klebert, Dipl.-Ing., MBA, has been Chairman of the Executive Board and Chief Executive Officer at GEA Group Aktiengesellschaft since February 18, 2019 and serves as its Member of Executive Board...

CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD3.62M) is about average for companies of similar size in the German market ($USD2.88M).

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

Leadership Team

Experienced Management: G1A's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: G1A's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.

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	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31