Georg Fischer AG (GF) AI Stock Analysis

• Market Cap: CHF4.97B
• Dividend Yield: 2.23%
• Average Volume (3M): 196.67K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.94
• Revenue Growth: -3.33%
• EPS Growth: -8.90%
• Country: CH
• Employees: 19,023
• Sector: Industrials
• Sector Strength: 82
• Industry: Industrial - Machinery
• EPS (TTM): 2.10
• Shares Outstanding: 82,017,960
• 10 Day Avg. Volume: 169,120
• 30 Day Avg. Volume: 196,668
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: CHF78.00
• Price Target Upside: 24.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Georg Fischer AG's stock score is primarily impacted by weak financial performance, particularly in revenue growth and balance sheet strength. Technical indicators show a downward trend, although the RSI suggests the stock might be nearing oversold conditions. Valuation metrics indicate the stock might be overvalued, but a moderate dividend yield offers some compensation. The absence of recent earnings call data or notable corporate events limits further assessment.

Positive Factors

Dividends

The dividend increased to CHF1.35 vs consensus at CHF1.32, indicating a stronger return to shareholders.

Earnings

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

Strategic Refocusing

Georg Fischer announced the long-awaited strategic refocusing on its structurally far more attractive water business, which should gradually improve its structural growth and also EBIT margin profile.

Negative Factors

Market Environment

Today's generally tougher market environment and the company's slightly reduced profit outlook are influenced by a weaker European automotive business and project delays in the higher-margin semiconductor-related piping business.

Profit Outlook

Management had to trim its full-year outlook, with an updated expectation of an adjusted 9% EBIT margin, driven by higher-than-product mix burdens.

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 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

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 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
	EBIT
340.00M	365.00M	371.00M	268.00M	137.00M
	EBITDA
510.00M	467.00M	513.00M	414.00M	302.00M
	Net Income Common Stockholders
214.00M	235.00M	276.00M	214.00M	116.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
682.00M	566.00M	894.00M	944.00M	841.00M
	Total Assets
4.28B	4.12B	3.73B	3.81B	3.50B
	Total Debt
2.57B	2.44B	735.00M	999.00M	958.00M
	Net Debt
1.91B	1.90B	-142.00M	67.00M	124.00M
	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: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 57.82, below the 50-day MA of 63.26, and below the 200-day MA of 63.83, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 81.17 is Negative, 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	70 Outperform	CHF1.74B	22.69		2.65%	10.38%	18.74%
BUCN	70 Neutral	CHF3.91B	17.26		2.86%	-11.73%	-35.55%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%
INRN	61 Neutral	CHF1.55B	24.81		1.72%	-5.25%	-6.32%
GF	54 Neutral	CHF4.97B	22.98		2.23%	-3.33%	-8.90%
KOMN	54 Neutral	CHF503.00M	99.21		2.84%	-16.31%	-107.34%