BATS-CHIXE:GGSD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

High growth potential with mediocre balance sheet.

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


Market Performance


7 Day Return

2.2%

GGSD

-3.3%

GB Communications

-5.1%

GB Market


1 Year Return

-46.0%

GGSD

41.3%

GB Communications

-20.0%

GB Market

Return vs Industry: GGSD underperformed the UK Communications industry which returned 39.9% over the past year.

Return vs Market: GGSD underperformed the UK Market which returned -19.3% over the past year.


Shareholder returns

GGSDIndustryMarket
7 Day2.2%-3.3%-5.1%
30 Day-13.0%-1.4%-4.3%
90 Day-21.7%-3.0%-4.5%
1 Year-46.0%-46.0%43.0%41.3%-17.0%-20.0%
3 Year-72.3%-72.3%120.0%107.7%-13.6%-24.3%
5 Year-77.1%-77.1%152.4%131.8%10.2%-14.6%

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: GGSD (€0.19) is trading below our estimate of fair value (€0.89)

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


Price To Earnings Ratio

PE vs Industry: GGSD is unprofitable, so we can't compare its PE Ratio to the GB Communications industry average.

PE vs Market: GGSD is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GGSD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GGSD is overvalued based on its PB Ratio (5.2x) compared to the GB Communications industry average (1.6x).


Next Steps

Future Growth

How is Gigaset forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

82.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GGSD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: GGSD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GGSD's is expected to become profitable in the next 3 years.

Revenue vs Market: GGSD's revenue (6.2% per year) is forecast to grow faster than the UK market (5.8% per year).

High Growth Revenue: GGSD's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GGSD's Return on Equity is forecast to be very high in 3 years time (2077.2%).


Next Steps

Past Performance

How has Gigaset performed over the past 5 years?

62.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GGSD is currently unprofitable.

Growing Profit Margin: GGSD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GGSD is unprofitable, but has reduced losses over the past 5 years at a rate of 62% per year.

Accelerating Growth: Unable to compare GGSD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GGSD is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-39.2%).


Return on Equity

High ROE: GGSD has a negative Return on Equity (-8.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gigaset's financial position?


Financial Position Analysis

Short Term Liabilities: GGSD's short term assets (€104.1M) exceed its short term liabilities (€67.5M).

Long Term Liabilities: GGSD's short term assets (€104.1M) do not cover its long term liabilities (€115.6M).


Debt to Equity History and Analysis

Debt Level: GGSD's debt to equity ratio (340%) is considered high.

Reducing Debt: GGSD's debt to equity ratio has increased from 1.2% to 340% over the past 5 years.


Balance Sheet


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: Whilst unprofitable GGSD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GGSD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 3.7% per year.


Next Steps

Dividend

What is Gigaset current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GGSD'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 GGSD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GGSD'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 GGSD's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

6.3yrs

Average board tenure


CEO

Klaus Wessing

4.83yrs

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 Board1.58yrs€150.00k0.0076%
€ 2.0k
Barbara Thätig
Vice Chairman of Supervisory Board1.17yrs€83.50kno data
Paolo Di Fraia
Member of Supervisory Board7.17yrs€100.00k0.011%
€ 3.0k
Ulrich Burkhardt
Member of Supervisory Board5.83yrs€74.00kno data
Xiaojian Huang
Member of Supervisory Board6.83yrs€69.00kno data
Ka Yan Shiu
Member of Supervisory Board6.83yrs€73.00kno data

6.3yrs

Average Tenure

Experienced Board: GGSD's board of directors are considered experienced (6.3 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.


Top Shareholders

Company Information

Gigaset AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gigaset AG
  • Ticker: GGSD
  • Exchange: BATS-CHIXE
  • Founded:
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €26.226m
  • 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
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. The company offers telephones, including digital enhanced cordless telecommunications cordless telepho ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 19:52
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.