XTRA:G1A

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has GEA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: G1A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.5%

G1A

0.3%

DE Machinery

-0.6%

DE Market


1 Year Return

-19.6%

G1A

-32.3%

DE Machinery

-20.9%

DE Market

Return vs Industry: G1A exceeded the German Machinery industry which returned -32.2% over the past year.

Return vs Market: G1A matched the German Market which returned -20.6% over the past year.


Shareholder returns

G1AIndustryMarket
7 Day6.5%0.3%-0.6%
30 Day-18.3%-18.8%-20.0%
90 Day-34.8%-30.1%-26.3%
1 Year-16.8%-19.6%-30.3%-32.3%-18.6%-20.9%
3 Year-50.1%-53.9%-42.3%-46.4%-19.0%-25.8%
5 Year-53.6%-58.6%-30.9%-38.6%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is GEA Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GEA Group undervalued compared to its fair value and its price relative to the market?

13.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: G1A (€19.39) is trading below our estimate of fair value (€22.31)

Significantly Below Fair Value: G1A is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: G1A is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: G1A is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate G1A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: G1A is overvalued based on its PB Ratio (1.7x) compared to the DE Machinery industry average (1.1x).


Next Steps

Future Growth

How is GEA Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

76.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: G1A is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: G1A is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: G1A's is expected to become profitable in the next 3 years.

Revenue vs Market: G1A's revenue (2.4% per year) is forecast to grow slower than the German market (4% per year).

High Growth Revenue: G1A's revenue (2.4% 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 (11.4%).


Next Steps

Past Performance

How has GEA Group performed over the past 5 years?

-24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G1A is currently unprofitable.

Growing Profit Margin: G1A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: G1A is unprofitable, and losses have increased over the past 5 years at a rate of -24.2% per year.

Accelerating Growth: Unable to compare G1A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: G1A is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-19.9%).


Return on Equity

High ROE: G1A has a negative Return on Equity (-8.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is GEA Group's financial position?


Financial Position Analysis

Short Term Liabilities: G1A's short term assets (€2.6B) exceed its short term liabilities (€2.1B).

Long Term Liabilities: G1A's short term assets (€2.6B) exceed its long term liabilities (€1.5B).


Debt to Equity History and Analysis

Debt Level: G1A's debt to equity ratio (15.6%) is considered satisfactory.

Reducing Debt: G1A's debt to equity ratio has reduced from 20.9% to 15.6% over the past 5 years.


Balance Sheet

Inventory Level: G1A has a high level of physical assets or inventory.

Debt Coverage by Assets: G1A's debt is covered by short term assets (assets are 8.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: G1A has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: G1A has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is GEA Group's current dividend yield, its reliability and sustainability?

4.38%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: G1A's dividend (4.38%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: G1A's dividend (4.38%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: G1A's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: G1A is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: G1A's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Stefan Klebert (54yo)

1.17s

Tenure

€3,418,328

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 ($USD3.69M) is about average for companies of similar size in the German market ($USD3.59M).

Compensation vs Earnings: Stefan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Klebert
Chairman of the Executive Board & CEO1.17yrs€3.42mno data
Marcus Ketter
CFO & Member of Executive Board0.92yr€1.54mno data
Johannes Giloth
COO & Member of the Executive Board0.25yrno datano data
Oliver Luckenbach
Head of Investor Relationsno datano datano data
Marc Pönitz
Head of Corporate Media & Pressno datano datano data
Tom Eriksson
Country Managing Director for Sweden & Finland4.42yrsno datano data
Ansgar Hoffmann
Head of DACH & Eastern Europe Region3.17yrsno datano data
Ann Tonia Cuylaerts
Regional Head of North & Central Europe3.17yrsno datano data
Thomas Rosenke
Senior Manager of Investor Relationsno datano datano data

2.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: G1A's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Helmut Perlet
Chairman of Supervisory Board4yrs€248.00kno data
Rainer Gröbel
Employee Representative Member of Supervisory Boardno data€98.00kno data
Kurt-Jürgen Löw
Employee Representative Deputy Chairman of Supervisory Board3.5yrs€123.00kno data
Jean Spence
Member of Supervisory Board9yrs€83.00kno data
Ahmad Bastaki
Member of Supervisory Board16.58yrs€97.00kno data
Hartmut Eberlein
Member of Supervisory Boardno data€132.00kno data
Michael Kämpfert
Employee Representative Member of Supervisory Board14.17yrs€97.00kno data
Molly Zhang
Member of Supervisory Board4yrs€109.00kno data
Eva-Maria Kerkemeier
Employee Representative Member of Supervisory Board9yrs€56.00kno data
Brigitte Krönchen
Employee Representative Member of Supervisory Board5.42yrs€124.00kno data

7.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: G1A's board of directors are considered experienced (7.2 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

GEA Group Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GEA Group Aktiengesellschaft
  • Ticker: G1A
  • Exchange: XTRA
  • Founded: 1881
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €3.499b
  • Shares outstanding: 180.49m
  • Website: https://www.gea.com

Number of Employees


Location

  • GEA Group Aktiengesellschaft
  • Peter-MUeller-Strasse 12
  • Düsseldorf
  • North Rhine-Westphalia
  • 40468
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
G1ADB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
G1AXTRA (XETRA Trading Platform)YesBearer SharesDEEURJan 1992
0MPJLSE (London Stock Exchange)YesBearer SharesGBEURJan 1992
GEAG.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1992
G1ADBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992
G1ASWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
G1AWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1992
G1AETLX (Eurotlx)YesBearer SharesITEURJan 1992
GEAG.YOTCPK (Pink Sheets LLC)SPON ADR EACH REPR 1ORDUSUSDJul 2008
G1AABST (Boerse-Stuttgart)SPON ADR EACH REPR 1ORDDEEURJul 2008

Biography

GEA Group Aktiengesellschaft engages in the development and production of systems and components for the food processing industry worldwide. It operates in two segments, Business Area Equipment and Business Area Solutions. The Business Area Equipment segment offers separators, valves, pumps, homogenizers, and refrigeration compressors, as well as process technology solutions for food processing and packaging applications; and dairy equipment, feeding systems, and slurry engineering solutions. The Business Area Solutions segment provides process solutions for the dairy, food, beverage, pharma, and chemical industries. The company was formerly known as mg technologies ag and changed its name to GEA Group Aktiengesellschaft in 2005. GEA Group Aktiengesellschaft was founded in 1881 and is headquartered in Düsseldorf, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 23:24
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.