NYSE:GDI

Stock Analysis Report

Executive Summary

Gardner Denver Holdings, Inc. provides mission-critical flow control and compression equipment; and associated aftermarket parts, consumables, and services in the United States, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has Gardner Denver Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

GDI

2.0%

US Machinery

0.6%

US Market


1 Year Return

67.5%

GDI

25.3%

US Machinery

20.8%

US Market

Return vs Industry: GDI exceeded the US Machinery industry which returned 25.3% over the past year.

Return vs Market: GDI exceeded the US Market which returned 20.8% over the past year.


Shareholder returns

GDIIndustryMarket
7 Day4.3%2.0%0.6%
30 Day7.7%2.6%2.5%
90 Day13.8%7.7%4.9%
1 Year67.5%67.5%27.6%25.3%23.5%20.8%
3 Yearn/a46.0%36.8%46.5%37.0%
5 Yearn/a67.4%47.5%64.6%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gardner Denver Holdings undervalued compared to its fair value and its price relative to the market?

31.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GDI ($35.54) is trading above our estimate of fair value ($35.04)

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


Price To Earnings Ratio

PE vs Industry: GDI is poor value based on its PE Ratio (31.6x) compared to the Machinery industry average (22.3x).

PE vs Market: GDI is poor value based on its PE Ratio (31.6x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: GDI is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: GDI is overvalued based on its PB Ratio (4.1x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Gardner Denver Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDI's forecast earnings growth (15.6% per year) is above the savings rate (1.7%).

Earnings vs Market: GDI's earnings (15.6% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: GDI's revenue (2.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: GDI's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDI's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has Gardner Denver Holdings performed over the past 5 years?

71.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDI has high quality earnings.

Growing Profit Margin: GDI's current net profit margins (8.9%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: GDI has become profitable over the past 5 years, growing earnings by 71.7% per year.

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

Earnings vs Industry: GDI had negative earnings growth (-28.4%) over the past year, making it difficult to compare to the Machinery industry average (12.4%).


Return on Equity

High ROE: GDI's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gardner Denver Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GDI's short term assets ($1.5B) exceed its short term liabilities ($595.8M).

Long Term Liabilities: GDI's short term assets ($1.5B) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: GDI's debt to equity ratio (89%) is considered high.

Reducing Debt: GDI's debt to equity ratio has reduced from 187.2% to 89% over the past 5 years.

Debt Coverage: GDI's debt is well covered by operating cash flow (24.5%).

Interest Coverage: GDI's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: GDI's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Gardner Denver Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

What is the CEO of Gardner Denver Holdings's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Vicente Reynal (44yo)

3.9yrs

Tenure

US$5,705,348

Compensation

Mr. Vicente Reynal has been Chief Executive Officer at Renaissance Parent Corp. (also known as Gardner Denver Holdings, Inc.) and Gardner Denver, Inc. since January 1, 2016. Mr. Reynal is responsible for l ...


CEO Compensation Analysis

Compensation vs Market: Vicente's total compensation ($USD5.71M) is about average for companies of similar size in the US market ($USD6.69M).

Compensation vs Earnings: Vicente's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

47yo

Average Age

Experienced Management: GDI's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: GDI's board of directors are not considered experienced ( 2.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mark Sweeney (57yo)

    VP & Chief Accounting Officer

    • Tenure: 2.9yrs
  • Andy Schiesl (47yo)

    VP, General Counsel

    • Tenure: 6yrs
    • Compensation: US$1.42m
  • Patrick Bennett (54yo)

    President of Medical Group

    • Tenure: 6.3yrs
    • Compensation: US$1.51m
  • Vikram Kini

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Vicente Reynal (44yo)

    CEO & Director

    • Tenure: 3.9yrs
    • Compensation: US$5.71m
  • Enrique Miñarro Viseras (41yo)

    VP & GM of Industrials Group EMEA

    • Tenure: 3.6yrs
    • Compensation: US$1.81m
  • Emily Weaver (47yo)

    Senior VP & CFO

    • Tenure: 0yrs
  • Kimberly Rubottom (55yo)

    Vice President of Human Resources

    • Tenure: 4.9yrs
  • Michael Scheske (32yo)

    VP, Corporate Controller & Principal Accounting Officer

    • Tenure: 1.2yrs
  • Michael Weatherred (57yo)

    Vice President of Execution Excellence (GDX)

    • Tenure: 0.8yrs

Board Members

  • Pete Stavros (45yo)

    Independent Chairman

    • Tenure: 0yrs
  • Bill Kassling (75yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$75.00k
  • Bill Donnelly (57yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$100.00k
  • Nick Steeg (76yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$75.00k
  • John Humphrey (53yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$200.00k
  • Joshua Weisenbeck (37yo)

    Independent Director

    • Tenure: 6.4yrs
  • Brandon Brahm (34yo)

    Independent Director

    • Tenure: 6.4yrs
  • Vicente Reynal (44yo)

    CEO & Director

    • Tenure: 3.9yrs
    • Compensation: US$5.71m
  • Mike Marn (66yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$75.00k
  • Liz Centoni (54yo)

    Independent Director

    • Tenure: 1yrs

Company Information

Gardner Denver Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gardner Denver Holdings, Inc.
  • Ticker: GDI
  • Exchange: NYSE
  • Founded: 1859
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$7.273b
  • Shares outstanding: 204.63m
  • Website: https://www.gardnerdenver.com

Number of Employees


Location

  • Gardner Denver Holdings, Inc.
  • 222 East Erie Street
  • Suite 500
  • Milwaukee
  • Wisconsin
  • 53202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDINYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2017
5GDDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2017

Biography

Gardner Denver Holdings, Inc. provides mission-critical flow control and compression equipment; and associated aftermarket parts, consumables, and services in the United States, Europe, the Middle East, Af ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:13
End of Day Share Price2019/12/13 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.