DB:GGS

Stock Analysis Report

Executive Summary

Gigaset AG operates in the area of telecommunications in Germany, rest of Europe, and internationally.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.6%

GGS

10.1%

DE Communications

7.3%

DE Market


1 Year Return

-42.0%

GGS

-37.9%

DE Communications

-17.7%

DE Market

Return vs Industry: GGS underperformed the German Communications industry which returned -37.9% over the past year.

Return vs Market: GGS underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

GGSIndustryMarket
7 Day13.6%10.1%7.3%
30 Day-16.9%-14.5%-17.9%
90 Day-28.2%-32.7%-25.8%
1 Year-42.0%-42.0%-37.6%-37.9%-15.1%-17.7%
3 Year-66.8%-66.8%-39.2%-39.4%-18.7%-25.6%
5 Year-71.3%-71.3%13.0%12.8%-17.7%-29.0%

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

No news available

Valuation

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 (€0.25) is trading below our estimate of fair value (€1.11)

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 (4x) compared to the Communications industry average (15x).

PE vs Market: GGS is good value based on its PE Ratio (4x) compared to the German market (16.4x).


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 (3.7x) compared to the DE Communications industry average (2.3x).


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 (4.1% 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 21.9%.


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.


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

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?

3.2yrs

Average board tenure


CEO

Klaus Wessing

4.25s

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

NamePositionTenureCompensationOwnership
Hau Yan Wong
Chairman of Supervisory Board1yr€115.50k0.0015% 550.0
Barbara Thätig
Member of Supervisory Board1.17yrs€52.50kno data
Paolo Di Fraia
Vice Chairman of Supervisory Board1yr€77.00k0.011% 4.1k
Ulrich Burkhardt
Member of Supervisory Board5.25yrs€73.00kno data
Xiaojian Huang
Member of Supervisory Board6.25yrs€81.00kno data
Ka Shiu
Member of Supervisory Board6.25yrs€77.00kno data

3.2yrs

Average Tenure

Experienced Board: GGS's board of directors are considered experienced (3.2 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: DB
  • Founded:
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €36.425m
  • Shares outstanding: 132.46m
  • Website: https://www.gigaset.com

Number of Employees


Location

  • Gigaset AG
  • Bernhard-Wicki-Strasse 5
  • Munich
  • Bavaria
  • 80636
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0DLFLSE (London Stock Exchange)Common StockGBEURNo data
GGSDB (Deutsche Boerse AG)YesBearer SharesDEEUROct 2006
GGSXTRA (XETRA Trading Platform)YesBearer SharesDEEUROct 2006
0DLFLSE (London Stock Exchange)YesBearer SharesGBEUROct 2006
GGSDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEUROct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 20:59
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
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.