BME:GEST

Stock Analysis Report

Gestamp Automoción

Executive Summary

Gestamp Automoción, S.A. designs, develops, manufactures, and sells metal automotive components in Europe, North America, South America, and Asia.

Snowflake

Fundamentals

Undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has Gestamp Automoción's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.0%

GEST

0.8%

ES Auto Components

0.5%

ES Market


1 Year Return

-28.3%

GEST

-4.2%

ES Auto Components

4.6%

ES Market

Return vs Industry: GEST underperformed the Spanish Auto Components industry which returned -4.2% over the past year.

Return vs Market: GEST underperformed the Spanish Market which returned 4.6% over the past year.


Shareholder returns

GESTIndustryMarket
7 Day-4.0%0.8%0.5%
30 Day-16.7%-2.8%1.6%
90 Day-15.9%0.7%0.4%
1 Year-26.7%-28.3%-0.6%-4.2%8.1%4.6%
3 Yearn/a-12.3%-19.6%13.6%3.1%
5 Yearn/a21.7%8.0%9.0%-11.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gestamp Automoción undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GEST (€3.87) is trading below our estimate of fair value (€13.65)

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


Price To Earnings Ratio

PE vs Industry: GEST is good value based on its PE Ratio (10x) compared to the Auto Components industry average (10.3x).

PE vs Market: GEST is good value based on its PE Ratio (10x) compared to the Spanish market (16.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: GEST is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: GEST is overvalued based on its PB Ratio (1.2x) compared to the XE Auto Components industry average (1.1x).


Next Steps

Future Growth

How is Gestamp Automoción forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GEST's forecast earnings growth (11.5% per year) is above the savings rate (1.5%).

Earnings vs Market: GEST's earnings (11.5% per year) are forecast to grow faster than the Spanish market (7.6% per year).

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

Revenue vs Market: GEST's revenue (4.4% per year) is forecast to grow faster than the Spanish market (3.7% per year).

High Growth Revenue: GEST's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GEST's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Gestamp Automoción performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GEST's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: GEST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GEST had negative earnings growth (-14.1%) over the past year, making it difficult to compare to the Auto Components industry average (-6.3%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Gestamp Automoción's financial position?


Financial Position Analysis

Short Term Liabilities: GEST's short term assets (€3.2B) exceeds its short term liabilities (€2.5B)

Long Term Liabilities: GEST's short term assets (3.2B) do not cover its long term liabilities (3.8B)


Debt to Equity History and Analysis

Debt Level: GEST's debt to equity ratio (135.9%) is considered high

Reducing Debt: GEST's debt to equity ratio has increased from 120% to 135.9% over the past 5 years.

Debt Coverage: GEST's debt is well covered by operating cash flow (20.5%).

Interest Coverage: GEST's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: GEST's debt is covered by short term assets (assets are 1.017680x debt).


Next Steps

Dividend

What is Gestamp Automoción's current dividend yield, its reliability and sustainability?

3.23%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.3%markettop25%5.7%industryaverage3.7%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GEST's dividend (3.23%) is higher than the bottom 25% of dividend payers in the Spanish market (2.31%).

High Dividend: GEST's dividend (3.23%) is low compared to the top 25% of dividend payers in the Spanish market (5.65%).

Stable Dividend: Too early to tell whether GEST's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GEST's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.3%), GEST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GEST's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Francisco López Peña 0

1.8yrs

Tenure

0

Mr. Francisco López Peña has been the Chief Executive Officer of Gestamp since January 2018. Mr. Peña was the Chief Financial Officer of Gestamp Automoción, S.A. since 2008 and also its Executive Director  ...


Management Age and Tenure

2.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: GEST's management team is considered experienced (2 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

55yo

Average Age

Experienced Board: GEST's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Buy€54,50009 May 19
César Cernuda Rego
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max Price€5.45

Ownership Breakdown


Management Team

  • Francisco José Riberas de Mera (55yo)

    Executive Chairman

    • Tenure: 2.6yrs
  • Francisco López Peña

    CEO & Director

    • Tenure: 1.8yrs
  • David Vázquez Pascual (54yo)

    Secretary Non-Member

    • Tenure: 2.8yrs
  • Felipe de Frutos (57yo)

    Director of Administration & Finance

    • Tenure: 0yrs
  • Manuel de la Flor Riberas (52yo)

    General Manager of Human Resources & Organisation

    • Tenure: 19.8yrs
  • Elena Torregrosa Blanchart

    Vice-Secretary

    • Tenure: 2.3yrs
  • Miguel Escrig

    Finance Director

    • Tenure: 1.7yrs

Board Members

  • Ana María García Fau (51yo)

    Independent Director

    • Tenure: 2.6yrs
  • Francisco José Riberas de Mera (55yo)

    Executive Chairman

    • Tenure: 2.6yrs
  • Shinichi Hori

    Director

    • Tenure: 1.5yrs
  • Francisco López Peña

    CEO & Director

    • Tenure: 1.8yrs
  • Pedro Sainz de Baranda Riva (56yo)

    Independent Director

    • Tenure: 2.6yrs
  • Alberto Rodriguez-Fraile Diaz

    Lead Independent Director

    • Tenure: 0.5yrs
  • Juan María Riberas Mera (55yo)

    Vice-Chairman

    • Tenure: 2.6yrs
  • Gonzalo Urquijo y Fernández de Araoz (58yo)

    Other External Director

    • Tenure: 2.6yrs
  • Javier Rodríguez Pellitero

    Independent Director

    • Tenure: 2.6yrs
  • César Cernuda Rego

    Independent Director

    • Tenure: 2.6yrs

Company Information

Gestamp Automoción, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gestamp Automoción, S.A.
  • Ticker: GEST
  • Exchange: BME
  • Founded: 1997
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €2.224b
  • Shares outstanding: 574.69m
  • Website: https://www.gestamp.com

Number of Employees


Location

  • Gestamp Automoción, S.A.
  • Polígono Industrial de Lebario
  • Abadiño
  • Basque Country
  • 48220
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GESTBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURApr 2017
0ROMLSE (London Stock Exchange)YesOrdinary SharesGBEURApr 2017
GESTEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURApr 2017
7GADB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2017
GEST NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNApr 2017

Biography

Gestamp Automoción, S.A. designs, develops, manufactures, and sells metal automotive components in Europe, North America, South America, and Asia. The company offers Body-in-White products, including large ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:30
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.