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GFT

GFT TechnologiesXTRA:GFT Stock Report

Market Cap

€1.1b

7D

7.6%

1Y

261.9%

Updated

08 Dec, 2021

Data

Company Financials +
GFT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance3/6
Financial Health6/6
Dividends0/6

GFT Stock Overview

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

GFT Technologies Competitors

Bechtle

XTRA:BC8

€8.0b

Novabase S.G.P.S

DB:NVQ

€149.0m

Accenture

NYSE:ACN

US$236.6b

International Business Machines

NYSE:IBM

US$110.3b

Price History & Performance

Summary of all time highs, changes and price drops for GFT Technologies
Historical stock prices
Current Share Price€43.65
52 Week High€44.50
52 Week Low€11.28
Beta2
1 Month Change3.68%
3 Month Change42.41%
1 Year Change261.94%
3 Year Change484.73%
5 Year Change136.27%
Change since IPO-12.00%

Recent News & Updates

Dec 01
There's Been No Shortage Of Growth Recently For GFT Technologies' (ETR:GFT) Returns On Capital

There's Been No Shortage Of Growth Recently For GFT Technologies' (ETR:GFT) Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...

Oct 14
Why GFT Technologies SE (ETR:GFT) Could Be Worth Watching

Why GFT Technologies SE (ETR:GFT) Could Be Worth Watching

While GFT Technologies SE ( ETR:GFT ) might not be the most widely known stock at the moment, it led the XTRA gainers...

Shareholder Returns

GFTDE ITDE Market
7D7.6%-1.1%1.2%
1Y261.9%22.2%17.5%

Return vs Industry: GFT exceeded the German IT industry which returned 23% over the past year.

Return vs Market: GFT exceeded the German Market which returned 18.3% over the past year.

Price Volatility

Is GFT's price volatile compared to industry and market?
GFT volatility
GFT Average Weekly Movement7.2%
IT Industry Average Movement5.5%
Market Average Movement5.0%
10% most volatile stocks in DE Market9.4%
10% least volatile stocks in DE Market2.6%

Stable Share Price: GFT is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GFT's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

FoundedEmployeesCEOWebsite
19877,286Marika Lulayhttps://www.gft.com

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.

GFT Technologies Fundamentals Summary

How do GFT Technologies's earnings and revenue compare to its market cap?
GFT fundamental statistics
Market Cap€1.15b
Earnings (TTM)€24.65m
Revenue (TTM)€523.20m

46.6x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GFT income statement (TTM)
Revenue€523.20m
Cost of Revenue€421.50m
Gross Profit€101.70m
Expenses€77.05m
Earnings€24.65m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.94
Gross Margin19.44%
Net Profit Margin4.71%
Debt/Equity Ratio55.9%

How did GFT perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

21%

Payout Ratio

Valuation

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

29.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFT (€43.65) is trading below our estimate of fair value (€61.89)

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


Price To Earnings Ratio

PE vs Industry: GFT is poor value based on its PE Ratio (46.6x) compared to the German IT industry average (33.5x).

PE vs Market: GFT is poor value based on its PE Ratio (46.6x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: GFT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: GFT is overvalued based on its PB Ratio (7.7x) compared to the DE IT industry average (3.6x).


Future Growth

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

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFT's forecast earnings growth (25.9% per year) is above the savings rate (-0.01%).

Earnings vs Market: GFT's earnings (25.9% per year) are forecast to grow faster than the German market (11.9% per year).

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

Revenue vs Market: GFT's revenue (13.8% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: GFT's revenue (13.8% 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 high in 3 years time (24.1%)


Past Performance

How has GFT Technologies performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFT has a large one-off loss of €9.5M impacting its September 30 2021 financial results.

Growing Profit Margin: GFT's current net profit margins (4.7%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: GFT's earnings have declined by 11.3% per year over the past 5 years.

Accelerating Growth: GFT's earnings growth over the past year (147.3%) exceeds its 5-year average (-11.3% per year).

Earnings vs Industry: GFT earnings growth over the past year (147.3%) exceeded the IT industry 34.6%.


Return on Equity

High ROE: GFT's Return on Equity (16.6%) is considered low.


Financial Health

How is GFT Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: GFT's short term assets (€213.8M) exceed its short term liabilities (€177.9M).

Long Term Liabilities: GFT's short term assets (€213.8M) exceed its long term liabilities (€94.1M).


Debt to Equity History and Analysis

Debt Level: GFT's net debt to equity ratio (10.9%) is considered satisfactory.

Reducing Debt: GFT's debt to equity ratio has reduced from 82.4% to 55.9% over the past 5 years.

Debt Coverage: GFT's debt is well covered by operating cash flow (72.4%).

Interest Coverage: GFT's interest payments on its debt are well covered by EBIT (35x coverage).


Balance Sheet


Dividend

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

0.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GFT's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the German market (0.99%).

High Dividend: GFT's dividend (0.46%) is low compared to the top 25% of dividend payers in the German market (3.39%).


Stability and Growth of Payments

Stable Dividend: GFT is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: GFT is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GFT is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GFT's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Marika Lulay (59 yo)

19.42yrs

Tenure

€877,271

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 ($USD994.30K) is below average for companies of similar size in the German market ($USD1.54M).

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


Leadership Team

Experienced Management: GFT's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: GFT's board of directors are considered experienced (6.3 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 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: €1.149b
  • Shares outstanding: 26.33m
  • Website: https://www.gft.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/08 21:53
End of Day Share Price2021/12/08 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.