DB:G1A

Stock Analysis Report

Executive Summary

GEA Group Aktiengesellschaft focuses on the development and production of process technology and components for the food processing industry worldwide.


Snowflake Analysis

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


Market Performance


7 Day Return

-5.8%

G1A

-6.3%

DE Machinery

-6.8%

DE Market


1 Year Return

21.2%

G1A

-14.7%

DE Machinery

6.5%

DE Market

Return vs Industry: G1A exceeded the German Machinery industry which returned -15.7% over the past year.

Return vs Market: G1A exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

G1AIndustryMarket
7 Day-5.8%-6.3%-6.8%
30 Day-8.2%-6.4%-3.7%
90 Day-12.1%-8.0%-3.6%
1 Year25.4%21.2%-12.0%-14.7%9.8%6.5%
3 Year-24.4%-30.2%-23.6%-29.0%6.8%-2.6%
5 Year-32.1%-39.5%-7.2%-17.6%12.5%-2.9%

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?

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: G1A (€25.75) is trading below our estimate of fair value (€31.29)

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 poor value based on its PE Ratio (53x) compared to the Machinery industry average (15.3x).

PE vs Market: G1A is poor value based on its PE Ratio (53x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: G1A is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: G1A is overvalued based on its PB Ratio (2x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is GEA Group forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

41.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: G1A's forecast earnings growth (41.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: G1A's earnings (41.5% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: G1A's revenue (2.4% per year) is forecast to grow slower than the German market (5.1% 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 (12%).


Next Steps

Past Performance

How has GEA Group performed over the past 5 years?

-15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G1A has high quality earnings.

Growing Profit Margin: G1A's current net profit margins (1.8%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: G1A's earnings have declined by -15.9% per year over the past 5 years.

Accelerating Growth: G1A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: G1A had negative earnings growth (-57.7%) over the past year, making it difficult to compare to the Machinery industry average (-14.4%).


Return on Equity

High ROE: G1A's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GEA Group's financial position?


Financial Position Analysis

Short Term Liabilities: G1A's short term assets (€2.7B) exceed its short term liabilities (€2.1B).

Long Term Liabilities: G1A's short term assets (€2.7B) exceed its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: G1A is debt free.

Reducing Debt: G1A has no debt compared to 5 years ago when its debt to equity ratio was 38.5%.

Debt Coverage: G1A has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: G1A has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: G1A's debt is not covered by short term assets (assets are -16x debt).


Next Steps

Dividend

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

3.29%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: G1A's dividend (3.29%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: G1A's dividend (3.29%) is low compared to the top 25% of dividend payers in the German market (3.8%).


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: With its high payout ratio (174.1%), G1A's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: G1A's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Stefan Klebert (54yo)

1yrs

Tenure

€1,511,304

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 ($USD1.64M) is below average for companies of similar size in the German market ($USD3.47M).

Compensation vs Earnings: Insufficient data to compare Stefan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Klebert
Chairman of the Executive Board & CEO1yrs€1.51mno data
Steffen Bersch
Member of Executive Board4.1yrs€1.67mno data
Marcus Ketter
CFO & Member of Executive Board0.8yrsno datano data
Johannes Giloth
COO & Member of the Executive Board0.08yrsno datano data
Fabian Kirchmann
Interim Head of Investor Relations0yrsno datano data
Marc Pönitz
Head of Corporate Media & Press0yrsno datano data
Tom Eriksson
Country Managing Director for Sweden & Finland4.3yrsno datano data
Ansgar Hoffmann
Head of DACH & Eastern Europe Region3yrsno datano data
Ann Tonia Cuylaerts
Regional Head of North & Central Europe3yrsno datano data
Thomas Rosenke
Senior Manager of Investor Relations0yrsno datano data

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: G1A's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Helmut Perlet
Chairman of Supervisory Board3.8yrs€251.00kno data
Rainer Gröbel
Employee Representative Member of Supervisory Board0yrs€101.00kno data
Kurt-Jürgen Löw
Employee Representative Deputy Chairman of Supervisory Board3.3yrs€126.00kno data
Jean Spence
Member of Supervisory Board8.8yrs€58.00kno data
Ahmad Bastaki
Member of Supervisory Board16.4yrs€97.00kno data
Hartmut Eberlein
Member of Supervisory Board0yrs€134.00kno data
Michael Kämpfert
Employee Representative Member of Supervisory Board14yrs€98.00kno data
Molly Zhang
Member of Supervisory Board3.8yrs€57.00kno data
Eva-Maria Kerkemeier
Employee Representative Member of Supervisory Board8.8yrs€57.00kno data
Brigitte Krönchen
Employee Representative Member of Supervisory Board5.3yrs€98.00kno data

7.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: G1A's board of directors are considered experienced (7 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: DB
  • Founded: 1881
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €4.668b
  • Shares outstanding: 180.49m
  • Website: https://www.gea.com

Number of Employees


Location

  • GEA Group Aktiengesellschaft
  • Peter-Müller-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 focuses on the development and production of process technology 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 food and beverages, 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 Analysis2020/02/26 20:53
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.