Executive Summary
Gigaset AG operates in the area of telecommunications in Germany, rest of Europe, and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -17.8% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Good value with proven track record.
Share Price & News
How has Gigaset's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GGS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.7%
GGS
1.7%
DE Communications
1.7%
DE Market
1 Year Return
-27.2%
GGS
11.5%
DE Communications
15.0%
DE Market
Return vs Industry: GGS underperformed the German Communications industry which returned 11.5% over the past year.
Return vs Market: GGS underperformed the German Market which returned 15% over the past year.
Shareholder returns
| GGS | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 1.7% | 1.7% |
| 30 Day | 5.7% | 2.7% | 0.8% |
| 90 Day | -0.3% | 1.7% | 3.7% |
| 1 Year | -27.2%-27.2% | 12.1%11.5% | 18.5%15.0% |
| 3 Year | -55.8%-55.8% | 2.8%2.4% | 17.1%6.9% |
| 5 Year | -55.8%-55.8% | 113.1%112.6% | 24.3%7.3% |
Price Volatility Vs. Market
How volatile is Gigaset's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Read This Before You Buy Gigaset AG (ETR:GGS) Because Of Its P/E Ratio3 weeks ago | Simply Wall St
We Think Gigaset (ETR:GGS) Is Taking Some Risk With Its Debt1 month ago | Simply Wall St
Why Gigaset AG (ETR:GGS) Could Be Worth WatchingValuation
Is Gigaset undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GGS (€0.35) is trading below our estimate of fair value (€1.3)
Significantly Below Fair Value: GGS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GGS is good value based on its PE Ratio (5.2x) compared to the Communications industry average (19.1x).
PE vs Market: GGS is good value based on its PE Ratio (5.2x) compared to the German market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: GGS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: GGS is overvalued based on its PB Ratio (4.7x) compared to the DE Communications industry average (3.1x).
Next Steps
Future Growth
How is Gigaset forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-17.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GGS's earnings are forecast to decline over the next 3 years (-17.8% per year).
Earnings vs Market: GGS's earnings are forecast to decline over the next 3 years (-17.8% per year).
High Growth Earnings: GGS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: GGS's revenue (1.5% per year) is forecast to grow slower than the German market (5% per year).
High Growth Revenue: GGS's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if GGS's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Gigaset performed over the past 5 years?
63.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GGS has a large one-off gain of €4.3M impacting its September 30 2019 financial results.
Growing Profit Margin: GGS's current net profit margins (3.3%) are higher than last year (1.4%).
Past Earnings Growth Analysis
Earnings Trend: GGS has become profitable over the past 5 years, growing earnings by 63.2% per year.
Accelerating Growth: GGS's earnings growth over the past year (121.2%) exceeds its 5-year average (63.2% per year).
Earnings vs Industry: GGS earnings growth over the past year (121.2%) exceeded the Communications industry 49.1%.
Return on Equity
High ROE: Whilst GGS's Return on Equity (91.02%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Gigaset's financial position?
Financial Position Analysis
Short Term Liabilities: GGS's short term assets (€122.7M) exceed its short term liabilities (€85.4M).
Long Term Liabilities: GGS's short term assets (€122.7M) exceed its long term liabilities (€113.5M).
Debt to Equity History and Analysis
Debt Level: GGS's debt to equity ratio (140.4%) is considered high.
Reducing Debt: GGS's debt to equity ratio has increased from 0.9% to 140.4% over the past 5 years.
Balance Sheet
Inventory Level: GGS has a high level of physical assets or inventory.
Debt Coverage by Assets: GGS's debt is covered by short term assets (assets are 8.8x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: GGS is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: GGS is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Gigaset's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate GGS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate GGS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GGS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GGS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GGS'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?
3.1yrs
Average board tenure
CEO
Klaus Wessing 0
4.2yrs
Tenure
Mr. Klaus Wessing has been the Chairman of The Executive Board and Chief Executive Officer of Gigaset AG since December 15, 2015 and serves as its Member of Management Board. Mr. Wessing served as the Mana ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of Supervisory Board | 1yrs | €115.50k | 0.0015% €708.0 | |
| Member of Supervisory Board | 1.1yrs | €52.50k | no data | |
| Vice Chairman of Supervisory Board | 1yrs | €77.00k | 0.011% €5.3k | |
| Member of Supervisory Board | 5.2yrs | €73.00k | no data | |
| Member of Supervisory Board | 6.2yrs | €81.00k | no data | |
| Member of Supervisory Board | 6.2yrs | €77.00k | no data |
3.1yrs
Average Tenure
Experienced Board: GGS's board of directors are considered experienced (3.1 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 been diluted in the past year, with total shares outstanding growing by 10.2%.
Top Shareholders
Company Information
Gigaset AG's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Gigaset AG
- Ticker: GGS
- Exchange: XTRA
- Founded:
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: €46.889m
- Shares outstanding: 132.46m
- Website: https://www.gigaset.com
Number of Employees
Location
- Gigaset AG
- Bernhard-Wicki-Strasse 5
- Munich
- Bavaria
- 80636
- Germany
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 0DLF | LSE (London Stock Exchange) | Common Stock | GB | EUR | No data | |
| GGS | DB (Deutsche Boerse AG) | Yes | Bearer Shares | DE | EUR | Oct 2006 |
| GGS | XTRA (XETRA Trading Platform) | Yes | Bearer Shares | DE | EUR | Oct 2006 |
| 0DLF | LSE (London Stock Exchange) | Yes | Bearer Shares | GB | EUR | Oct 2006 |
| GGSD | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Bearer Shares | GB | EUR | Oct 2006 |
Biography
Gigaset AG operates in the area of telecommunications in Germany, rest of Europe, and internationally. It operates through four segments: Phones, Professional, Smart Home, and Smartphones. The company produces and distributes digital enhanced cordless telecommunications cordless telephones; and IP telephony and ergonomic telephones for the elderly. It also offers a range of desk telephones and mobile components for small and medium-sized enterprises; entry-level smartphones; and security and alarm solutions for condominiums and houses, as well as assistive systems for the elderly. Gigaset AG also sells its smartphones through online. The company was formerly known as ARQUES Industries AG. Gigaset AG is headquartered in Munich, Germany. Gigaset AG is a subsidiary of Goldin Fund Pte. Ltd.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 21:13 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.