GK Software (XTRA:GKS) - Share price, News & Analysis

GKS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

GKS Stock Overview

GK Software SE provides retail sector software worldwide.

Rewards

Trading at 28.9% below our estimate of its fair value

Earnings are forecast to grow 11.59% per year

Earnings grew by 111.9% over the past year

Risk Analysis

No risks detected for GKS from our risk checks.

GK Software Competitors

Oracle

NYSE:ORCL

US$191.8b

NCR

NYSE:NCR

US$4.8b

Diebold Nixdorf

NYSE:DBD

US$265.2m

Price History & Performance

Summary of all time highs, changes and price drops for GK Software
Historical stock prices
Current Share Price	€138.60
52 Week High	€172.00
52 Week Low	€105.00
Beta	2.15
1 Month Change	8.28%
3 Month Change	0.80%
1 Year Change	10.00%
3 Year Change	71.11%
5 Year Change	67.90%
Change since IPO	593.00%

Recent News & Updates

May 18

If You Like EPS Growth Then Check Out GK Software (ETR:GKS) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Sep 02

GK Software SE's (ETR:GKS) Price Is Out Of Tune With Earnings

It's not a stretch to say that GK Software SE's ( ETR:GKS ) price-to-earnings (or "P/E") ratio of 24x right now seems...

Shareholder Returns

	GKS	DE Software	DE Market
7D	8.1%	-1.5%	1.0%
1Y	10.0%	-18.5%	-11.1%

Return vs Industry: GKS exceeded the German Software industry which returned -17.8% over the past year.

Return vs Market: GKS exceeded the German Market which returned -11.4% over the past year.

Price Volatility

Is GKS's price volatile compared to industry and market?
GKS volatility
GKS Average Weekly Movement	6.6%
Software Industry Average Movement	7.4%
Market Average Movement	6.4%
10% most volatile stocks in DE Market	10.8%
10% least volatile stocks in DE Market	3.5%

Stable Share Price: GKS is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GKS's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	1,096	Rainer Gläß	https://www.gk-software.com

GK Software SE provides retail sector software worldwide. It offers GK/Retail suite, including OmniPOS solution for point of sale; Mobile POS that enables to deploy mobile retail concepts; OmniScale, a CLOUD4RETAIL-based solution for scales; Artificial Intelligence for Retail, a cloud-based, ready-to-use AI services for smart retailers to achieve their goals; Store Inventory Management, a solution for the seamless integration of stores with any central ERP system; GK Drive, which gives retailers access to POS platform; eMailBon offer customers a way to receive receipts digitally; and Mobile Consumer Assistant. The company’s GK/Retail suite consists of Store Device Control, a solution for the management of store peripherals; Label & Poster Print, a software solution for store-level label and poster printing; Fiskal cloud-based services of Deutsche Fiskal for the accommodation of German legal requirements; central services; Frictionless Checkout that enables shopping processes on the customer's smartphone, including self-scanning and mobile payment; Dynamic Pricing to pricing with a cloud deployment; Cloud POS, which delivers a reduction of costs for licenses, development, maintenance, and hardware investments; TransAction+, a payment processing application; and electronic payments, an advanced solution for credit, debit, gift, loyalty, and check.

GK Software Fundamentals Summary

How do GK Software's earnings and revenue compare to its market cap?
GKS fundamental statistics
Market Cap	€313.02m
Earnings (TTM)	€13.16m
Revenue (TTM)	€128.78m

23.8x

P/E Ratio

2.4x

P/S Ratio

Is GKS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GKS income statement (TTM)
Revenue	€128.78m
Cost of Revenue	€92.91m
Gross Profit	€35.87m
Other Expenses	€22.72m
Earnings	€13.16m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 26, 2022

Earnings per share (EPS)	5.83
Gross Margin	27.86%
Net Profit Margin	10.22%
Debt/Equity Ratio	22.9%

How did GKS perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

28.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GKS (€138.6) is trading below our estimate of fair value (€195.03)

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

Price To Earnings Ratio

PE vs Industry: GKS is good value based on its PE Ratio (23.8x) compared to the German Software industry average (30.9x).

PE vs Market: GKS is poor value based on its PE Ratio (23.8x) compared to the German market (17.7x).

Price to Earnings Growth Ratio

PEG Ratio: GKS is poor value based on its PEG Ratio (2.1x)

Price to Book Ratio

PB vs Industry: GKS is overvalued based on its PB Ratio (3.8x) compared to the DE Software industry average (2.8x).

Future Growth

How is GK Software forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GKS's forecast earnings growth (11.6% per year) is above the savings rate (-0.05%).

Earnings vs Market: GKS's earnings (11.6% per year) are forecast to grow faster than the German market (7.7% per year).

High Growth Earnings: GKS's earnings are forecast to grow, but not significantly.

Revenue vs Market: GKS's revenue (10% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: GKS's revenue (10% 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 (16.9%).

Past Performance

How has GK Software performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

32.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GKS has high quality earnings.

Growing Profit Margin: GKS's current net profit margins (10.2%) are higher than last year (5.2%).

Past Earnings Growth Analysis

Earnings Trend: GKS's earnings have grown significantly by 32.1% per year over the past 5 years.

Accelerating Growth: GKS's earnings growth over the past year (111.9%) exceeds its 5-year average (32.1% per year).

Earnings vs Industry: GKS earnings growth over the past year (111.9%) exceeded the Software industry 9.2%.

Return on Equity

High ROE: GKS's Return on Equity (15.9%) is considered low.

Financial Health

How is GK Software's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GKS's short term assets (€91.0M) exceed its short term liabilities (€44.7M).

Long Term Liabilities: GKS's short term assets (€91.0M) exceed its long term liabilities (€15.8M).

Debt to Equity History and Analysis

Debt Level: GKS has more cash than its total debt.

Reducing Debt: GKS's debt to equity ratio has reduced from 46.6% to 22.9% over the past 5 years.

Debt Coverage: GKS's debt is well covered by operating cash flow (121.2%).

Interest Coverage: GKS's interest payments on its debt are well covered by EBIT (16.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.69%

Forecast Dividend Yield

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GKS has not reported any payouts.

Discover strong dividend paying companies

Management

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

11.3yrs

Average board tenure

CEO

Rainer Gläß

no data

Tenure

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

Board Members

Experienced Board: GKS's board of directors are seasoned and experienced ( 11.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31