BIT:GE

Stock Analysis Report

Executive Summary

Gefran S.p.A., together with its subsidiaries, designs and produces automation components and industrial process control systems worldwide.

Rewards

PE ratio (11.2x) is below the Italian market (18.6x)

Earnings are forecast to grow 12.02% per year

Earnings grew by 34.4% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet established dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

GE

1.8%

IT Electronic

1.5%

IT Market


1 Year Return

-19.8%

GE

10.1%

IT Electronic

16.6%

IT Market

Return vs Industry: GE underperformed the Italian Electronic industry which returned 10.1% over the past year.

Return vs Market: GE underperformed the Italian Market which returned 16.5% over the past year.


Shareholder returns

GEIndustryMarket
7 Day2.9%1.8%1.5%
30 Day-3.6%-2.7%2.3%
90 Day-6.5%4.3%4.8%
1 Year-16.0%-19.8%12.6%10.1%21.7%16.6%
3 Year110.8%88.3%34.4%25.7%36.5%22.9%
5 Year90.9%70.6%109.6%88.1%18.4%-22.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GE (€6.46) is trading above our estimate of fair value (€5.97)

Significantly Below Fair Value: GE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GE is good value based on its PE Ratio (11.2x) compared to the Electronic industry average (13.3x).

PE vs Market: GE is good value based on its PE Ratio (11.2x) compared to the Italian market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GE is good value based on its PB Ratio (1.3x) compared to the IT Electronic industry average (1.7x).


Next Steps

Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GE's forecast earnings growth (12% per year) is above the savings rate (1.2%).

Earnings vs Market: GE's earnings (12% per year) are forecast to grow faster than the Italian market (9.9% per year).

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

Revenue vs Market: GE's revenue (4.1% per year) is forecast to grow slower than the Italian market (4.4% per year).

High Growth Revenue: GE's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GE's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has Gefran performed over the past 5 years?

52.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GE has high quality earnings.

Growing Profit Margin: GE's current net profit margins (5.9%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: GE has become profitable over the past 5 years, growing earnings by 52.9% per year.

Accelerating Growth: GE's earnings growth over the past year (34.4%) is below its 5-year average (52.9% per year).

Earnings vs Industry: GE earnings growth over the past year (34.4%) exceeded the Electronic industry 14.3%.


Return on Equity

High ROE: GE's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gefran's financial position?


Financial Position Analysis

Short Term Liabilities: GE's short term assets (€90.3M) exceed its short term liabilities (€52.3M).

Long Term Liabilities: GE's short term assets (€90.3M) exceed its long term liabilities (€32.6M).


Debt to Equity History and Analysis

Debt Level: GE's debt to equity ratio (49.4%) is considered high.

Reducing Debt: GE's debt to equity ratio has reduced from 65.5% to 49.4% over the past 5 years.

Debt Coverage: GE's debt is well covered by operating cash flow (46.2%).

Interest Coverage: GE's interest payments on its debt are well covered by EBIT (38x coverage).


Balance Sheet

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

Debt Coverage by Assets: GE's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

4.95%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.9%markettop25%4.3%industryaverage1.9%forecastin3Years7.3%

Current dividend yield vs market & industry

Notable Dividend: GE's dividend (4.95%) is higher than the bottom 25% of dividend payers in the Italian market (1.88%).

High Dividend: GE's dividend (4.95%) is in the top 25% of dividend payers in the Italian market (4.27%)


Stability and Growth of Payments

Stable Dividend: GE's dividend payments have been volatile in the past 10 years.

Growing Dividend: GE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.6%), GE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GE's dividends in 3 years are forecast to be covered by earnings (70% payout ratio).


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Alberto Bartoli (59yo)

0

Mr. Alberto Bartoli is the Chief Executive Officer and Director of Gefran S.p.A. He served as the Chief Executive Officer at Sabaf SPA since May 8, 2012 until April 27, 2017 and served as its Chief Financi ...


Board Members

NamePositionTenureCompensationOwnership
Alberto Bartoli
CEO & Director0yrsno datano data
Ernesto Metraglia
Secretary of Board of Directors and Director of the Colombera S p A0yrsno datano data
Ennio Franceschetti
Honorary Chairman1.8yrs€450.02k3.51% 3.3m
Romano Gallus
Independent Director19.8yrs€25.50kno data
Maria Franceschetti
Chairman of the Board1.8yrs€214.33kno data
Giovanna Franceschetti
Vice Chairperson of the Board1.8yrs€82.22kno data
Andrea Franceschetti
Vice Chairperson of the Board1.8yrs€133.27kno data
Daniele Piccolo
Independent Director7.3yrs€25.50kno data
Monica Vecchiati
Independent Director5.8yrs€27.50kno data
Marco Gregorini
Chairman of the Board of Statutory Auditors0yrs€20.00kno data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Board: GE's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 2%.


Top Shareholders

Company Information

Gefran S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gefran S.p.A.
  • Ticker: GE
  • Exchange: BIT
  • Founded:
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: €92.848m
  • Shares outstanding: 14.37m
  • Website: https://www.gefran.com

Number of Employees


Location

  • Gefran S.p.A.
  • Via Sebina, 74
  • Provaglio d'Iseo
  • Brescia
  • 25050
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GEBIT (Borsa Italiana)YesCommon SharesITEURJun 1998
0EKILSE (London Stock Exchange)YesCommon SharesGBEURJun 1998
GEMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJun 1998
GF7DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1998

Biography

Gefran S.p.A., together with its subsidiaries, designs and produces automation components and industrial process control systems worldwide. It operates through three segments: Sensors, Automation Components, and Motion Control. The company offers magnetostrictive, potentiometer, rotary, inclinometer, and linear by wire position sensors; industrial and melt pressure sensors; strain and force sensors; and thermocouple and resistance thermometer temperature sensors. It also provides controllers and programmers, and indicators and alarm units; power controllers, solid state relays with/without heatsinks, and fieldbuses; automation platforms; inverters for industrial applications and elevators, DC drives, Regen and AC/DC power suppliers, motors, and special configurations; and servodrives and motors. Its products are used in plastic, mobile hydraulic, electrical furnace, lift, metal, hoist and crane, and water, as well as heating, ventilation, and air conditioning applications. The company is headquartered in Provaglio d'Iseo, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 20:52
End of Day Share Price2020/02/14 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.