Georg Fischer AG (GF) AI Stock Analysis

• Market Cap: CHF3.30B
• Dividend Yield: 2.53%
• Average Volume (3M): 155.19K
• Price to Earnings (P/E): 42.7
• Beta (1Y): 0.90
• Revenue Growth: -24.42%
• EPS Growth: 32.48%
• Country: CH
• Employees: 19,023
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.70
• Shares Outstanding: 82,017,960
• 10 Day Avg. Volume: 175,746
• 30 Day Avg. Volume: 155,190
• PEG Ratio: -0.82
• Price to Book (P/B): -488.25
• Price to Sales (P/S): 1.47
• P/FCF Ratio: 219.71
• 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: CHF62.25
• Price Target Upside: 56.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.56
• Revenue Forecast (FY): CHF3.40B

• Rating: 49 Neutral
• Price Target: CHF40.00 ▲(0.30% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held down primarily by financial risk (high leverage/negative equity) and weaker 2025 operating performance (revenue decline and sharply lower free cash flow), reinforced by bearish technicals. These are partially offset by a reasonable valuation and recovery-oriented 2026 guidance tied to cost reductions and improved free cash flow targets.

Positive Factors

Pure‑play Flow Solutions

Refocusing the group on Flow Solutions plus the VAG acquisition and Uponor integration creates a clearer, more concentrated business model. Over months this should improve strategic allocation, simplify operations, and enable cross‑sell in Buildings, Industry and Infrastructure, supporting steadier organic growth and margin leverage.

Data center cooling growth

Rapid traction in data‑center liquid cooling from CHF30m and a deep sales pipeline offers a multi‑year structural growth avenue. Scaling to higher revenues (management target CHF300m) diversifies end markets into secularly growing hyperscale and edge infrastructure, with potential for attractive system and aftermarket margins.

Cost synergies & Fit for Growth

Realized synergies and a defined CHF40m cost program target immediate structural cost base reduction. If delivered, these savings plus working‑capital actions should sustainably improve comparable EBITDA margins and free cash flow, aiding deleveraging and freeing capacity for reinvestment in sales and growth initiatives.

Negative Factors

High leverage / negative equity

A large debt load with negative shareholders' equity materially weakens the capital structure and limits financial flexibility. Over months this raises refinancing and covenant risk, reduces capacity for countercyclical investment, and increases the importance of consistent cash generation to meet leverage targets and avoid further balance sheet erosion.

Collapsed free cash flow

An 86%-decline in FCF to ~CHF20m despite positive operating cash flow signals weak cash conversion and higher working‑capital or investment drains. Persistently low FCF relative to debt impairs the company's ability to deleverage, fund capex/M&A, or sustain distributions without relying on external financing or asset sales.

Revenue & margin pressure

A near‑20% top‑line drop and severe gross‑margin compression reflect structural mix shifts, lower demand in key end markets and pricing/cost headwinds. If such volatility persists, it undermines margin sustainability, forecasting accuracy and the ability to absorb fixed costs, making margin recovery and reliable earnings generation harder.

Georg Fischer AG Business Overview & Revenue Model

Company Description

Georg Fischer AG provides piping systems, and casting and machining solutions in Europe, the Americas, Asia, and internationally. The company offers plastic and metal piping systems for the transportation of water, abrasive and aggressive liquids, and gases, as well as corresponding services for industry, utilities, and building services sectors; and fittings, valves, pipes, automation, and jointing technologies for various water cycle applications. It also provides lightweight components for mobility and energy industries. In addition, the company offers machines, system solutions, and customer services for manufacturing molds, tools, and parts in the aerospace, information and communication technology, electronic, medical, and automotive industries. Further, it provides milling, wire-cutting, and die-sinking services; spindles; electro discharge machining (EDM), laser texturing, laser micromachining, and additive manufacturing machines; and tooling and automation services, as well as digitalization solutions. The company was founded in 1802 and is headquartered in Schaffhausen, Switzerland.

How the Company Makes Money

GF makes money primarily by selling engineered products, systems, and related lifecycle services across its operating divisions. In GF Piping Systems, revenue is generated from the sale of plastic pipes, fittings, valves, jointing technologies, measurement/control components, and integrated piping solutions to customers in sectors such as water treatment and distribution, industrial fluid handling, and building services; earnings are supported by project-driven system supply as well as repeat demand for standardized components and replacement/maintenance needs. In GF Machining Solutions, revenue comes from selling capital equipment (e.g., CNC milling machines, EDM equipment, laser and additive manufacturing systems), factory automation solutions, and software-enabled capabilities where applicable, complemented by recurring aftermarket streams such as consumables (e.g., EDM wire/electrodes, tooling-related items), spare parts, maintenance contracts, training, and technical services; this mix typically provides both one-time machine sales and ongoing service/consumables revenue over the installed base life. Across the group, profitability is influenced by industrial capital spending cycles, the size and utilization of the installed base (which drives aftermarket sales), and demand in water/infrastructure and industrial markets. Specific material partnerships, customer contracts, or revenue splits by stream are null.

Georg Fischer AG Financial Statement Overview

Summary

Overall financials are pressured by a sharp 2025 revenue decline (~-19.8%), gross margin compression, and a steep drop in free cash flow (~20M, down ~86.5%). The biggest risk is the balance sheet: high debt (~2.26B) alongside negative equity in 2025 increases financial risk and reduces flexibility despite still-positive operating cash flow.

Income Statement

Profitability has been positive but weakening: net margin fell to ~3.4% in 2025 from ~5–7% in 2021–2024, despite EBIT margin improving to ~13.0%. Revenue trajectory is the key concern—2025 revenue declined ~19.8% after being roughly flat in 2023–2024, indicating meaningful top-line volatility. Gross margin also compressed sharply in 2025 (~29.1%) versus 2024 (~41.6%), suggesting pricing/mix or cost pressure.

Balance Sheet

Leverage and capital structure are the main weakness. Total debt is high (~2.26B in 2025), while shareholders’ equity turned slightly negative in 2025 (and was also negative in 2023), which makes the balance sheet appear thin and increases financial risk. The debt-to-equity figure is not meaningful in a negative-equity year, but the underlying message is clear: debt is large relative to the equity base, and return on equity is negative in 2025 due to the equity deficit.

Cash Flow

Operating cash flow remains positive (277M in 2025), but cash generation deteriorated materially. Free cash flow dropped to ~20M in 2025 (down ~86.5% vs 2024) and covered only ~7% of net income, indicating weaker cash conversion and/or higher investment needs. The company also shows relatively modest operating cash flow relative to debt (coverage ~0.18 in 2025), which adds pressure given the elevated leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.00B	3.89B	4.03B	4.00B	3.72B
Gross Profit	874.00M	1.62B	899.00M	899.00M	748.00M
EBITDA	495.00M	510.00M	467.00M	513.00M	414.00M
Net Income	103.00M	214.00M	235.00M	276.00M	214.00M
Balance Sheet
Total Assets	3.64B	4.28B	4.12B	3.73B	3.81B
Cash, Cash Equivalents and Short-Term Investments	575.00M	682.00M	566.00M	894.00M	944.00M
Total Debt	2.26B	2.57B	2.44B	735.00M	999.00M
Total Liabilities	3.60B	4.12B	4.10B	2.08B	2.31B
Stockholders Equity	-9.00M	109.00M	-44.00M	1.60B	1.47B
Cash Flow
Free Cash Flow	20.00M	178.00M	133.00M	165.00M	146.00M
Operating Cash Flow	277.00M	393.00M	338.00M	331.00M	291.00M
Investing Cash Flow	135.00M	-281.00M	-2.12B	-123.00M	-168.00M
Financing Cash Flow	-462.00M	-4.00M	1.50B	-236.00M	-35.00M

Georg Fischer AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 39.88 is below the 20-day moving average (MA) of 45.67, below the 50-day MA of 50.11, and below the 200-day MA of 57.59, indicating a bearish trend. The MACD of -3.04 indicates Positive momentum. The RSI at 21.10 is Positive, neither overbought nor oversold. The STOCH value of 15.09 is Positive, 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
KARN	73 Outperform	CHF1.96B	54.72	―	2.17%	11.43%	6.46%
BUCN	73 Outperform	CHF3.45B	15.87	―	2.99%	-11.64%	-24.17%
SUN	65 Neutral	$5.33B	16.99	24.15%	2.90%	5.79%	13.20%
VACN	64 Neutral	$15.22B	53.97	32.09%	1.63%	19.22%	11.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INRN	59 Neutral	CHF1.23B	33.61	―	1.46%	-3.67%	-12.95%
GF	49 Neutral	CHF3.30B	42.66	―	2.53%	-24.42%	32.48%