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 questionable track record.


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

0.2%

GDI

-0.2%

US Machinery

0.8%

US Market


1 Year Return

54.1%

GDI

20.8%

US Machinery

25.1%

US Market

Return vs Industry: GDI exceeded the US Machinery industry which returned 22.4% over the past year.

Return vs Market: GDI exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

GDIIndustryMarket
7 Day0.2%-0.2%0.8%
30 Day-6.3%-0.7%3.1%
90 Day7.1%6.9%10.9%
1 Year54.1%54.1%23.1%20.8%27.7%25.1%
3 Yearn/a41.1%32.0%51.3%41.6%
5 Yearn/a78.4%56.9%77.2%57.6%

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?

1.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GDI ($34.56) is trading below our estimate of fair value ($34.93)

Significantly Below Fair Value: GDI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GDI is poor value based on its PE Ratio (31x) compared to the Machinery industry average (23.4x).

PE vs Market: GDI is poor value based on its PE Ratio (31x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GDI is overvalued based on its PB Ratio (4x) 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 7 analysts?

2.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GDI's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if GDI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GDI's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% 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 (15.5%).


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 (9.6%).


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 188.6% 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?

3.0yrs

Average management tenure


CEO

Vicente Reynal (44yo)

4yrs

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 ($USD5.71M) is about average for companies of similar size in the US market ($USD6.46M).

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

3.0yrs

Average Tenure

54yo

Average Age

Experienced Management: GDI's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

53.5yo

Average Age

Experienced Board: GDI's board of directors are not considered experienced ( 2.9 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: 3yrs
  • Andy Schiesl (47yo)

    VP, General Counsel

    • Tenure: 6.1yrs
    • Compensation: US$1.42m
  • Patrick Bennett (54yo)

    President of Medical Group

    • Tenure: 6.4yrs
    • Compensation: US$1.51m
  • Sia Abbaszadeh (58yo)

    VP and GM of Vacuum & Turbo Blowers - Downstream Energy

    • Tenure: 1.4yrs
  • Vikram Kini

    Vice President of Investor Relations

    • Vicente Reynal (44yo)

      CEO & Director

      • Tenure: 4yrs
      • Compensation: US$5.71m
    • Emily Weaver (47yo)

      Senior VP & CFO

      • Tenure: 0.08yrs
    • Kimberly Rubottom (55yo)

      Vice President of Human Resources

      • Tenure: 5yrs
    • Michael Scheske (31yo)

      VP & Corporate Controller

      • Tenure: 1.3yrs
    • Michael Weatherred (57yo)

      Vice President of Execution Excellence (GDX)

      • Tenure: 0.9yrs

    Board Members

    • Pete Stavros (45yo)

      Independent Chairman

      • Bill Kassling (75yo)

        Independent Director

        • Tenure: 2.9yrs
        • Compensation: US$75.00k
      • Bill Donnelly (57yo)

        Independent Director

        • Tenure: 2.7yrs
        • Compensation: US$100.00k
      • Nick Steeg (76yo)

        Independent Director

        • Tenure: 2.9yrs
        • Compensation: US$75.00k
      • John Humphrey (53yo)

        Independent Director

        • Tenure: 1.9yrs
        • Compensation: US$200.00k
      • Joshua Weisenbeck (37yo)

        Independent Director

        • Tenure: 6.5yrs
      • Brandon Brahm (34yo)

        Independent Director

        • Tenure: 6.5yrs
      • Vicente Reynal (44yo)

        CEO & Director

        • Tenure: 4yrs
        • Compensation: US$5.71m
      • Mike Marn (66yo)

        Independent Director

        • Tenure: 2.9yrs
        • Compensation: US$75.00k
      • Liz Centoni (54yo)

        Independent Director

        • Tenure: 1.1yrs

      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$7.072b
      • 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, Africa, and the Asia Pacific. It operates through three segments: Industrials, Energy, and Medical. The Industrials segment designs, manufactures, markets, and services a range of air compression, vacuum, and blower products, as well as offers associated aftermarket parts, consumables, and services. Its products are used in process-critical applications, such as the operation of industrial air tools, vacuum packaging of food products, aeration of waste water, and others. This segment sells its products through an integrated network of direct sales representatives and independent distributors under the Gardner Denver, CompAir, Elmo Rietschle, Robuschi, and other brand names. The Energy segment engages in the design, manufacture, marketing, and service of a range of displacement and liquid ring vacuum pumps, compressors and integrated systems, and engineered fluid loading and transfer equipment, as well as offers associated aftermarket parts, consumables, and services under the Gardner Denver, Nash, Emco Wheaton, and other brands. It serves customers in upstream, midstream, and downstream energy markets, as well as petrochemical processing, transportation, and general industrial sectors. The Medical segment designs, manufactures, and markets a range of specialized gas, liquid, and precision syringe pumps and compressors for use in oxygen therapy, blood dialysis, patient monitoring, laboratory sterilization and wound treatment, and other applications. This segment sells its products under the Thomas and other brands. Gardner Denver Holdings, Inc. was founded in 1859 and is headquartered in Milwaukee, Wisconsin. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/22 00:47
      End of Day Share Price2020/01/21 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.