DB:GFT

Stock Analysis Report

GFT Technologies

Executive Summary

GFT Technologies SE, together with its subsidiaries, provides information technology (IT) consulting and solutions.

Snowflake

Fundamentals

Very undervalued established dividend payer.


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


Market Performance


7 Day Return

10.5%

GFT

-14.4%

DE IT

1.4%

DE Market


1 Year Return

-20.8%

GFT

-22.6%

DE IT

3.7%

DE Market

Return vs Industry: GFT exceeded the German IT industry which returned -22.6% over the past year.

Return vs Market: GFT underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

GFTIndustryMarket
7 Day10.5%-14.4%1.4%
30 Day15.1%-17.5%1.3%
90 Day15.4%-17.1%3.4%
1 Year-17.4%-20.8%-22.3%-22.6%7.0%3.7%
3 Year-49.6%-53.5%112.8%107.2%18.5%8.3%
5 Year-13.4%-22.4%255.4%240.2%42.2%22.9%

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

No news available

Valuation

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

41.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GFT (€8.09) is trading below our estimate of fair value (€13.73)

Significantly Undervalued: GFT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GFT is good value based on its PE Ratio (14.6x) compared to the IT industry average (26.1x).

PE vs Market: GFT is good value based on its PE Ratio (14.6x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: GFT is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: GFT is good value based on its PB Ratio (1.7x) compared to the DE IT industry average (3.7x).


Next Steps

Future Growth

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

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFT's forecast earnings growth (21.4% per year) is above the savings rate (0.2%).

Earnings vs Market: GFT's earnings (21.4% per year) are forecast to grow faster than the German market (12.7% per year).

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

Revenue vs Market: GFT's revenue (4.7% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: GFT's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GFT's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has GFT Technologies performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GFT's earnings have declined by -3.3% 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 (-28.6%) over the past year, making it difficult to compare to the IT industry average (22.7%).


Return on Equity

High ROE: GFT's Return on Equity (11.5%) is considered low.


Return on Assets

ROA vs Industry: GFT's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: GFT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is GFT Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: GFT's short term assets (€186.5M) exceeds its short term liabilities (€121.3M)

Long Term Liabilities: GFT's short term assets (186.5M) exceeds its long term liabilities (177.0M)


Debt to Equity History and Analysis

Debt Level: GFT's debt to equity ratio (102.8%) is considered high

Reducing Debt: GFT's debt to equity ratio has increased from 67.2% to 102.8% over the past 5 years.

Debt Coverage: GFT's debt is well covered by operating cash flow (34.1%).

Interest Coverage: GFT's interest payments on its debt are well covered by EBIT (10.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: GFT's debt is covered by short term assets (assets are 1.466940x debt).


Next Steps

Dividend

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

3.79%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.5%markettop25%3.8%industryaverage0.7%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GFT's dividend (3.79%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: GFT's dividend (3.79%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: GFT's dividends per share have been stable 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 reasonable payout ratio (55.4%), GFT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GFT's dividends in 3 years are forecast to be well covered by earnings (37.8% payout ratio).


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Marika Lulay (57yo)

2.4yrs

Tenure

€818,573

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Marika has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Marika's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

9.4yrs

Average Tenure

Experienced Management: GFT's management team is seasoned and experienced (9.4 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: GFT's board of directors are considered experienced (4.8 years average tenure).


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

  • Ulrich Dietz

    Founder & Chairman of the Administrative Board

    • Tenure: 2.4yrs
  • Jochen Ruetz

    CFO, MD

    • Tenure: 4.8yrs
    • Compensation: €690.46k
  • Marika Lulay (57yo)

    CEO, Chairman of MD

    • Tenure: 2.4yrs
    • Compensation: €818.57k
  • Alfio Puglisi

    MD of the Regions Germany

    • Tenure: 0yrs
  • Andrea Wlcek

    Head of Group Communications and Director of Global Marketing

    • Tenure: 17.8yrs
  • Christian Ball

    Head of Retail

    • Tenure: 2.8yrs
  • Markus Kreitinger

    Head of M&A

    • Tenure: 0yrs
  • Carlos Eres

    MD of Spain & Mexico and Member of Executive Board

    • Tenure: 0yrs
  • Guillermo Rodríguez

    Global Head of Human Resources

    • Tenure: 0yrs
  • Joan Fonoll

    COO & Member of Group Executive Board

    • Tenure: 0.3yrs

Board Members

  • Gerhard Barth (69yo)

    Member of the Advisory Board

    • Tenure: 0yrs
    • Compensation: €4.83k
  • Ulrich Dietz

    Founder & Chairman of the Administrative Board

    • Tenure: 2.4yrs
  • Paul Lerbinger (64yo)

    Vice Chairman of the Administrative Board

    • Tenure: 2.4yrs
  • Jochen Ruetz

    CFO, MD

    • Tenure: 4.8yrs
    • Compensation: €690.46k
  • Marika Lulay (57yo)

    CEO, Chairman of MD

    • Tenure: 2.4yrs
    • Compensation: €818.57k
  • Andreas Bereczky (66yo)

    Member of the Administrative Board

    • Tenure: 8.4yrs
  • Maria Dietz (57yo)

    Member of the Administrative Board

    • Tenure: 4.3yrs
  • Andreas Wiedemann (51yo)

    Member of the Administrative Board

    • Tenure: 4.8yrs

Company Information

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


Key Information

  • Name: GFT Technologies SE
  • Ticker: GFT
  • Exchange: DB
  • Founded: 1987
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €208.238m
  • 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 information technology (IT) consulting and solutions. The company operates in two segments, Americas & UK and Continental Europe. It offers con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:43
End of Day Share Price2019/10/18 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.