XTRA:GKS

Stock Analysis Report

Executive Summary

GK Software SE provides retail sector software worldwide.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has GK Software's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-10.9%

GKS

3.3%

DE Software

2.4%

DE Market


1 Year Return

-29.8%

GKS

23.0%

DE Software

4.9%

DE Market

Return vs Industry: GKS underperformed the German Software industry which returned 23% over the past year.

Return vs Market: GKS underperformed the German Market which returned 4.9% over the past year.


Shareholder returns

GKSIndustryMarket
7 Day-10.9%3.3%2.4%
30 Day-1.7%7.6%2.3%
90 Day-14.0%4.9%2.7%
1 Year-29.8%-29.8%24.7%23.0%8.2%4.9%
3 Year6.2%6.2%54.5%48.3%18.3%8.0%
5 Year59.5%59.5%154.1%136.0%44.2%24.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is GK Software undervalued compared to its fair value and its price relative to the market?

38.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GKS (€59) is trading below our estimate of fair value (€95.63)

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


Price To Earnings Ratio

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

PE vs Market: GKS 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 GKS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GKS is overvalued based on its PB Ratio (3.5x) compared to the DE Software industry average (3x).


Next Steps

Future Growth

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

41.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GKS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

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

High Growth Earnings: GKS's loss is forecast to worsen by 0% next year.

Revenue vs Market: GKS's revenue (10.6% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: GKS's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GKS's Return on Equity is forecast to be low in 3 years time (19.3%).


Next Steps

Past Performance

How has GK Software performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GKS is unprofitable, but has reduced losses over the past 5 years at a rate of 18.8% per year.

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

Earnings vs Industry: GKS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.5%).


Return on Equity

High ROE: GKS has a negative Return on Equity (-15.78%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: GKS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: GKS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is GK Software's financial position?


Financial Position Analysis

Short Term Liabilities: GKS's short term assets (€47.5M) exceeds its short term liabilities (€45.0M)

Long Term Liabilities: GKS's short term assets (47.5M) exceeds its long term liabilities (34.4M)


Debt to Equity History and Analysis

Debt Level: GKS's debt to equity ratio (99.5%) is considered high

Reducing Debt: GKS's debt to equity ratio has increased from 4% to 99.5% over the past 5 years.

Debt Coverage: GKS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if GKS's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: GKS's debt is covered by short term assets (assets are 1.397250x debt).


Next Steps

Dividend

What is GK Software's current dividend yield, its reliability and sustainability?

0.79%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate GKS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GKS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if GKS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GKS's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of GK Software's salary, the management and board of directors tenure and is there insider trading?


CEO

Rainer Gläß 0

0yrs

Tenure

0

Mr. Rainer Gläß is a Co-Founder of GK Software AG, and serves as its Chief Executive Officer and Chairman of the Management Board. Mr. Gläß is an engineering graduate. 


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Harald Göbel (59yo)

    Senior VP of Customer Solutions & Services and Member of Group Management Board

    • Tenure: 3.6yrs
  • Rainer Gläß

    Co-Founder

    • Tenure: 0yrs
  • Stephan Kronmüller

    Deputy Chairman of Management Board

    • Tenure: 0yrs
  • André Hergert

    CFO, Head of Finance & Member of the Management Board

    • Tenure: 0yrs
  • Michael Jaszczyk

    Member of Group Management Board & CEO GK Software USA

    • Tenure: 0yrs
  • René Schiller

    Director of Corporate Communications & Investor Relations

    • Tenure: 0yrs

Board Members

  • Volkswirt Ludwig

    Chairman of Supervisory Board

    • Tenure: 0yrs
  • Thomas Bleier

    Vice Chairman of Supervisory Board

    • Tenure: 0yrs
  • Herbert Zinn

    Member of Supervisory Board

    • Tenure: 8.8yrs

Company Information

GK Software SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GK Software SE
  • Ticker: GKS
  • Exchange: XTRA
  • Founded: 1990
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €119.227m
  • Shares outstanding: 2.02m
  • Website: https://www.gk-software.com

Number of Employees


Location

  • GK Software SE
  • Waldstrasse 7
  • Schöneck
  • Saxony
  • 8261
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GKSDB (Deutsche Boerse AG)YesBearer SharesDEEURJun 2008
GKSXTRA (XETRA Trading Platform)YesBearer SharesDEEURJun 2008
0NAULSE (London Stock Exchange)YesBearer SharesGBEURJun 2008
GKSdBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJun 2008
GKSF.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJun 2008

Biography

GK Software SE provides retail sector software worldwide. The company offers GK/Retail suite, including OmniPOS solution for point of sale; Mobile POS that enables to deploy mobile retail concepts; Open Sc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:09
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.