Georg Fischer AG (GF) AI Stock Analysis

• Market Cap: CHF5.35B
• Dividend Yield: 2.07%
• Average Volume (3M): 148.02K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.95
• Revenue Growth: -24.42%
• EPS Growth: 32.48%
• Country: CH
• Employees: 19,023
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): 2.19
• Shares Outstanding: 82,017,960
• 10 Day Avg. Volume: 123,838
• 30 Day Avg. Volume: 148,022
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: CHF75.00
• Price Target Upside: 14.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: CHF68.00 ▲(4.21% Upside)

Georg Fischer AG's stock score is primarily influenced by its financial performance, which shows strong cash flow management but is hindered by revenue decline and high leverage. Technical analysis suggests a stable price trend with potential for upward movement. The valuation indicates the stock is fairly priced with a reasonable dividend yield.

Positive Factors

Dividend Growth

The dividend increased to CHF1.35 (from CHF1.30) vs consensus at CHF1.32.

Financial Performance

Comparable EBIT increased +15.4% to CHF449m, beating consensus and estimates by +2.7% and +4.8% respectively.

Strategic Focus

The transaction clears the way for GF to focus on its core competencies in Flow Solutions, potentially leading to long-term strategic benefits.

Negative Factors

Market Expectations

The sale price is lower than market expectations, which might influence short-term market perception.

Sales Performance

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

Transaction Impact

As a result of the transaction, GF will incur a sizable one-off, non-cash book loss, including various adjustments, recycling of goodwill, and currency translation differences.

Georg Fischer AG Business Overview & Revenue Model

Company Description

Georg Fischer AG (GF) is a global industrial company based in Switzerland that operates primarily in three sectors: GF Piping Systems, GF Automotive, and GF Machining Solutions. GF Piping Systems offers piping systems and solutions for water and gas distribution, as well as industrial applications. GF Automotive specializes in lightweight casting and machining solutions for the automotive industry, focusing on enhancing vehicle efficiency and safety. GF Machining Solutions provides advanced manufacturing technologies, including milling, EDM (Electrical Discharge Machining), and 3D printing, catering to a variety of industries seeking precision components and tools.

How the Company Makes Money

Georg Fischer AG generates revenue through multiple streams across its three business sectors. GF Piping Systems earns money by supplying a wide range of piping solutions and related products to various industries, including water management and construction, with a focus on sustainability and innovation. GF Automotive's revenue is derived from the production of lightweight cast components and assemblies for automotive manufacturers, emphasizing the growing demand for energy-efficient and safety-enhancing vehicle parts. GF Machining Solutions contributes to the company’s earnings by selling advanced machinery and technology solutions to manufacturers, thereby capitalizing on the increasing need for precision manufacturing and automation. Additionally, GF benefits from strategic partnerships with industry leaders, which enhance its market presence and enable collaboration on innovative projects, further contributing to its revenue growth.

Georg Fischer AG Financial Statement Overview

Summary

Georg Fischer AG faces challenges in revenue growth and balance sheet stability, with high leverage impacting financial flexibility. However, effective cash flow management reflects operational strengths. The company needs to focus on improving profitability and reducing debt to enhance financial health.

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: Positive
• Last Price: 65.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 65.25 is above the 20-day moving average (MA) of 63.88, above the 50-day MA of 63.75, and above the 200-day MA of 64.96, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 77.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:GF.

Georg Fischer AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	78 Outperform	CHF5.25B	19.25	23.37%	2.71%	5.79%	13.20%
BUCN	75 Outperform	CHF4.05B	17.94		2.78%	-11.64%	-24.17%
KARN	70 Outperform	CHF2.51B	33.86		1.84%	11.43%	6.46%
INRN	68 Neutral	CHF1.93B	32.50		1.37%	-3.67%	-12.95%
VACN	67 Neutral	$8.46B	37.88	32.09%	2.28%	19.22%	11.62%
GF	64 Neutral	CHF5.35B	19.30		2.07%	-24.42%	32.48%
Sector *	61 Neutral	C$7.19B	-4.76	-4.20%	2.32%	13.56%	-31.48%