XTRA:GFT

Stock Analysis Report

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Executive Summary

GFT Technologies SE, together with its subsidiaries, provides digital transformation services.


Snowflake Analysis

Good value with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has GFT Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.3%

GFT

4.5%

DE IT

2.8%

DE Market


1 Year Return

41.3%

GFT

-54.0%

DE IT

0.3%

DE Market

Return vs Industry: GFT exceeded the German IT industry which returned -54% over the past year.

Return vs Market: GFT exceeded the German Market which returned 0.3% over the past year.


Shareholder returns

GFTIndustryMarket
7 Day1.3%4.5%2.8%
30 Day6.4%-46.7%0.5%
90 Day34.8%-41.3%27.7%
1 Year44.1%41.3%-53.9%-54.0%2.3%0.3%
3 Year-36.6%-41.7%-11.5%-13.4%3.5%-4.9%
5 Year-40.9%-47.3%57.2%51.3%11.4%-3.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GFT Technologies undervalued compared to its fair value and its price relative to the market?

19.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFT (€10.7) is trading below our estimate of fair value (€13.37)

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


Price To Earnings Ratio

PE vs Industry: GFT is good value based on its PE Ratio (21.3x) compared to the IT industry average (25.2x).

PE vs Market: GFT is poor value based on its PE Ratio (21.3x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: GFT is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: GFT is good value based on its PB Ratio (2.2x) compared to the DE IT industry average (3.5x).


Next Steps

Future Growth

How is GFT Technologies forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFT's forecast earnings growth (27.1% per year) is above the savings rate (0.2%).

Earnings vs Market: GFT's earnings (27.1% per year) are forecast to grow faster than the German market (22.3% per year).

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

Revenue vs Market: GFT's revenue (6.7% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: GFT's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GFT's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has GFT Technologies performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFT has high quality earnings.

Growing Profit Margin: GFT's current net profit margins (3%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: GFT's earnings have declined by -11.7% per year over the past 5 years.

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

Earnings vs Industry: GFT had negative earnings growth (-26.3%) over the past year, making it difficult to compare to the IT industry average (21.7%).


Return on Equity

High ROE: GFT's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is GFT Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: GFT's short term assets (€189.6M) exceed its short term liabilities (€133.0M).

Long Term Liabilities: GFT's short term assets (€189.6M) exceed its long term liabilities (€152.4M).


Debt to Equity History and Analysis

Debt Level: GFT's debt to equity ratio (82.8%) is considered high.

Reducing Debt: GFT's debt to equity ratio has increased from 82.6% to 82.8% over the past 5 years.

Debt Coverage: GFT's debt is well covered by operating cash flow (37.3%).

Interest Coverage: GFT's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

What is GFT Technologies's current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GFT's dividend (1.87%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: GFT's dividend (1.87%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.8%), GFT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GFT's dividends in 3 years are forecast to be well covered by earnings (48.3% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Marika Lulay (58yo)

3.17yrs

Tenure

€773,227

Compensation

Mrs. Marika Lulay serves as Chairman of the Executive Board and Member of Executive Board at GFT Technologies SE and has been its Chief Executive Officer since June 2017. She serves as Managing Director at ...


CEO Compensation Analysis

Compensation vs Market: Marika's total compensation ($USD869.28K) is about average for companies of similar size in the German market ($USD1.08M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ulrich Dietz
Founder & Chairman of the Administrative Board 3.17yrs€86.00k26.5% 74.6m
Marika Lulay
CEO, MD3.17yrs€773.23kno data
Jochen Ruetz
CFO, MD5.5yrs€670.08kno data
Joan Fonoll
COO & Member of Group Executive Board2yrsno datano data
David Collins
Group Chief Executive of Region Manager of North America & UK and Member of Executive Board0.50yrno datano data
Christopher Ortiz
Group Chief Executive of Global Markets & Region Manager APAC and Member of Executive Board0.50yrno datano data
Jens-Thorsten Rauer
Group Chief Executive & MD - Region Manager of Central & Western Europe and Member of Exec. Board0.50yrno datano data
Marco Santos
Region Manager of Latin America & Member of Executive Board0.50yrno datano data
Andrea Wlcek
Head of Group Communications and Director of Global Marketing18.5yrsno datano data
Guillermo Rodríguez
Global Head of Human Resourcesno datano datano data

2.0yrs

Average Tenure

58yo

Average Age

Experienced Management: GFT's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ulrich Dietz
Founder & Chairman of the Administrative Board 3.17yrs€86.00k26.5% 74.6m
Marika Lulay
CEO, MD3.17yrs€773.23kno data
Jochen Ruetz
CFO, MD5.5yrs€670.08kno data
Gerhard Barth
Member of the Advisory Boardno data€4.83kno data
Paul Lerbinger
Independent Vice Chairman of the Administrative Board3.17yrs€64.50kno data
Andreas Bereczky
Independent Member of the Administrative Board9.17yrs€43.00kno data
Maria Dietz
Member of the Administrative Board5.08yrs€43.00k9.7% 27.3m
Andreas Wiedemann
Independent Member of the Administrative Board5.5yrs€43.00kno data

5.5yrs

Average Tenure

60yo

Average Age

Experienced Board: GFT's board of directors are considered experienced (5.5 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

GFT Technologies SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GFT Technologies SE
  • Ticker: GFT
  • Exchange: XTRA
  • Founded: 1987
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €281.688m
  • Shares outstanding: 26.33m
  • Website: https://www.gft.com

Number of Employees


Location

  • GFT Technologies SE
  • Schelmenwasenstrasse 34
  • Stuttgart
  • Baden-Württemberg
  • 70567
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFTDB (Deutsche Boerse AG)YesBearer SharesDEEURJun 1999
GFTXTRA (XETRA Trading Platform)YesBearer SharesDEEURJun 1999
0O2WLSE (London Stock Exchange)YesBearer SharesGBEURJun 1999
GFTDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJun 1999
GFTWBAG (Wiener Boerse AG)YesBearer SharesATEURJun 1999

Biography

GFT Technologies SE, together with its subsidiaries, provides digital transformation services. The company operates in two segments, Americas, UK & APAC; and Continental Europe. It offers consulting on the development and realization of IT strategies, development of bespoke IT solutions, implementation of sector-specific software, and maintenance and development of business-critical IT solutions. The company also provides digital solutions; and application management and outsourcing services. It serves retail banking, capital market, insurance, and Internet of Things sectors. The company operates in Brazil, Germany, France, the United Kingdom, Italy, Canada, Mexico, Poland, Switzerland, Spain, the United States, and internationally. GFT Technologies SE was founded in 1987 and is headquartered in Stuttgart, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 20:49
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
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.