Georg Fischer AG (GF) AI Stock Analysis

• Market Cap: CHF5.20B
• Dividend Yield: 1.74%
• Average Volume (3M): 132.16K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.92
• Revenue Growth: -3.33%
• EPS Growth: -8.90%
• Country: CH
• Employees: 19,023
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 2.10
• Shares Outstanding: 82,017,960
• 10 Day Avg. Volume: 146,230
• 30 Day Avg. Volume: 132,163
• PEG Ratio: 0.58
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF77.00
• Price Target Upside: 22.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: CHF64.00 ▲(2.15%Upside)

The overall stock score reflects challenges in financial performance, specifically in revenue and balance sheet stability. Technical analysis shows a lack of strong momentum, while valuation metrics indicate potential overvaluation. Effective cash flow management is a positive but overshadowed by other financial weaknesses.

Positive Factors

Dividends

The dividend increased to CHF1.35, surpassing the consensus expectation of CHF1.32.

Earnings

Comparable EBIT increased by 15.4% to CHF449m, beating consensus and analyst estimates.

Synergies

Synergies from the Uponor integration exceeded initial targets, contributing CHF17m.

Negative Factors

Market Recovery

Weaker LFL growth indicates a slower recovery, despite stronger EBIT and FCF generation.

Sales Performance

Sales are 3% below consensus due to sluggish European construction and automotive markets, as well as the strong Swiss franc.

Georg Fischer AG Business Overview & Revenue Model

Company Description

Georg Fischer AG (GF) is a leading Swiss industrial company that operates in three main sectors: GF Piping Systems, GF Casting Solutions, and GF Machining Solutions. GF Piping Systems specializes in the development and manufacturing of piping systems for the safe and reliable transport of liquids and gases. GF Casting Solutions provides high-quality cast components for the automotive, aerospace, and energy industries. GF Machining Solutions offers advanced manufacturing technologies such as milling, EDM, laser texturing, and automation for the tool and mold making, as well as the precision component industries.

How the Company Makes Money

Georg Fischer AG generates revenue through its diverse portfolio across three core business sectors. GF Piping Systems earns money by providing complete piping solutions, including pipes, fittings, valves, automation, and jointing technologies, serving industries such as water treatment, gas, and marine. GF Casting Solutions makes money primarily through the production and sale of lightweight cast components, focusing on markets like automotive and aerospace, where there is a growing demand for efficient and sustainable solutions. GF Machining Solutions contributes to the company's earnings by offering high-precision manufacturing technologies and services, catering to industries that require advanced machining capabilities, such as electronics, aerospace, and medical technology. The company's revenue model is further supported by strategic partnerships and a global sales network that helps to expand its market reach and customer base.

Georg Fischer AG Financial Statement Overview

Summary

Georg Fischer AG faces challenges in revenue growth and balance sheet stability, with a significant decline in revenue and negative stockholders' equity, despite improved cash flow management. The overall financial health is hindered by high leverage and a need for enhanced growth strategies.

Income Statement

The revenue of Georg Fischer AG experienced a decrease from CHF 4.026 billion in 2023 to CHF 3.892 billion in 2024. Key profitability metrics include a gross profit margin of 41.56% and a net profit margin of 5.50% in 2024. The EBIT margin stands at 8.73% and EBITDA margin at 13.10%, indicating moderate operating efficiency. The decline in revenue and net income signals a need for improvement in growth strategies.

Balance Sheet

Georg Fischer AG displays a weak balance sheet with negative stockholders' equity of CHF 44 million in 2023, improving slightly to CHF 109 million in 2024. The debt-to-equity ratio is concerning due to high debt levels. Despite a higher equity ratio of 2.54% in 2024, the overall leverage remains high, presenting significant financial risk.

Cash Flow

The company shows strong cash flow management with an increase in operating cash flow from CHF 338 million in 2023 to CHF 393 million in 2024. Free cash flow improved by 33.83% to CHF 178 million, highlighting effective capital expenditure control. However, the free cash flow to net income ratio suggests room for better cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.89B	4.03B	4.00B	3.72B	3.18B
Gross Profit	1.62B	899.00M	899.00M	748.00M	597.00M
EBITDA	510.00M	467.00M	513.00M	414.00M	302.00M
Net Income	214.00M	235.00M	276.00M	214.00M	116.00M
Balance Sheet
Total Assets	4.28B	4.12B	3.73B	3.81B	3.50B
Cash, Cash Equivalents and Short-Term Investments	682.00M	566.00M	894.00M	944.00M	841.00M
Total Debt	2.57B	2.44B	735.00M	999.00M	958.00M
Total Liabilities	4.12B	4.10B	2.08B	2.31B	2.11B
Stockholders Equity	109.00M	-44.00M	1.60B	1.47B	1.35B
Cash Flow
Free Cash Flow	178.00M	133.00M	165.00M	146.00M	201.00M
Operating Cash Flow	393.00M	338.00M	331.00M	291.00M	346.00M
Investing Cash Flow	-281.00M	-2.12B	-123.00M	-168.00M	-110.00M
Financing Cash Flow	-4.00M	1.50B	-236.00M	-35.00M	94.00M

Georg Fischer AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:GF, the sentiment is Negative. The current price of 62.65 is below the 20-day moving average (MA) of 63.70, below the 50-day MA of 63.21, and below the 200-day MA of 64.20, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 36.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:GF.

Georg Fischer AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUCN	75 Outperform	CHF4.03B	17.78		2.28%	-11.73%	-35.55%
INRN	71 Outperform	CHF1.68B	26.94		1.57%	-5.25%	-6.32%
KARN	70 Outperform	CHF2.16B	28.07		2.15%	10.38%	18.74%
SUN	66 Neutral	$4.89B	18.72	22.45%	2.45%	7.58%	14.41%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
KOMN	57 Neutral	CHF505.05M	99.21		2.84%	-16.31%	-107.34%
GF	52 Neutral	CHF5.20B	24.26		1.74%	-3.33%	-8.90%