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GEA Group AG (DE:G1A)
XETRA:G1A

GEA Group AG (G1A) AI Stock Analysis

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DE

GEA Group AG

(XETRA:G1A)

Rating:75Outperform
Price Target:
€67.00
▲(14.53%Upside)
GEA Group AG's overall stock score is driven primarily by its strong financial performance and positive technical indicators, suggesting a solid underlying business and upward price momentum. However, its high P/E ratio raises concerns about overvaluation, which tempers the overall score.

GEA Group AG (G1A) vs. iShares MSCI Germany ETF (EWG)

GEA Group AG Business Overview & Revenue Model

Company DescriptionGEA Group AG is a leading global supplier of technology and services for the food processing industry and a wide range of other sectors. Headquartered in Düsseldorf, Germany, GEA specializes in machinery, plants, and process technology that enhance production efficiency and product quality for industries such as dairy, beverage, food, chemical, pharmaceutical, and marine. The company is renowned for its innovative solutions and sustainable practices, focusing on improving resource utilization and minimizing environmental impact.
How the Company Makes MoneyGEA Group AG generates revenue primarily through the sale of equipment and technology solutions tailored to the needs of various industries. Its key revenue streams include the design, production, and distribution of processing machinery and systems for the food and beverage sector, as well as other industries like pharmaceuticals and chemicals. GEA also earns money through service agreements, maintenance contracts, and spare parts supply, providing ongoing support and optimization for its installed base of equipment. Additionally, the company forms strategic partnerships and collaborations to enhance its technological offerings and expand its market reach, further contributing to its revenue.

GEA Group AG Financial Statement Overview

Summary
GEA Group AG demonstrates strong financial health with consistent revenue growth and effective cost management. The balance sheet reflects prudent financial management with low leverage. Cash flow performance is robust, with opportunities for further optimizing cash conversion. Continued focus on improving net profit margins and equity financing could enhance financial strength further.
Income Statement
85
Very Positive
GEA Group AG shows strong financial performance with a steady increase in revenue from 2020 to 2024, reaching €5.42 billion. The gross profit margin has improved, indicating efficient cost management. The EBIT and EBITDA margins are healthy, reflecting solid operational performance. However, the net profit margin has slightly decreased from 2023 to 2024, indicating a need for focus on net income retention.
Balance Sheet
78
Positive
The company maintains a solid balance sheet with a low debt-to-equity ratio, demonstrating conservative leverage practices. Stockholders' equity has steadily increased, enhancing financial stability. However, the equity ratio indicates moderate reliance on liabilities to finance assets, suggesting room for improving equity financing.
Cash Flow
82
Very Positive
GEA Group AG shows strong cash flow performance with a significant increase in free cash flow from 2020 to 2024, reflecting effective capital expenditure management. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio suggests potential for further improvement in cash conversion.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.42B5.37B5.16B4.70B4.64B
Gross Profit
1.94B1.82B1.72B1.56B1.42B
EBIT
538.31M504.90M466.88M380.90M286.06M
EBITDA
661.34M657.37M599.32M506.82M404.19M
Net Income Common Stockholders
385.04M392.76M401.43M305.17M96.83M
Balance SheetCash, Cash Equivalents and Short-Term Investments
638.31M627.93M752.80M972.58M866.34M
Total Assets
6.03B5.95B5.92B5.87B5.69B
Total Debt
294.78M256.69M372.37M428.53M576.53M
Net Debt
-326.14M-367.19M-329.97M-499.66M-245.21M
Total Liabilities
3.61B3.56B3.64B3.80B3.77B
Stockholders Equity
2.42B2.40B2.28B2.08B1.92B
Cash FlowFree Cash Flow
473.01M305.21M265.53M552.15M617.63M
Operating Cash Flow
710.12M533.57M469.33M682.00M715.22M
Investing Cash Flow
-205.63M-200.64M-175.78M-112.47M-91.20M
Financing Cash Flow
-483.94M-397.80M-497.55M-479.52M-138.64M

GEA Group AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price58.50
Price Trends
50DMA
56.00
Positive
100DMA
54.59
Positive
200DMA
49.80
Positive
Market Momentum
MACD
0.70
Positive
RSI
52.40
Neutral
STOCH
17.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:G1A, the sentiment is Positive. The current price of 58.5 is below the 20-day moving average (MA) of 58.81, above the 50-day MA of 56.00, and above the 200-day MA of 49.80, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 17.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:G1A.

GEA Group AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LILIN
77
Outperform
$223.86B34.5117.20%1.26%0.78%6.75%
DESIE
75
Outperform
€171.56B17.5215.14%2.37%-0.04%33.26%
DEG1A
75
Outperform
€9.48B25.0516.56%1.96%1.79%0.06%
DEHEI
74
Outperform
€31.60B17.959.69%1.86%-0.10%-6.11%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
DEFRE
61
Neutral
€24.52B58.706.28%2.27%-18.90%
DEBAS
57
Neutral
€38.82B52.522.02%5.24%-2.04%2258.97%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:G1A
GEA Group AG
58.50
21.42
57.77%
LIN
Linde
468.54
34.20
7.87%
DE:BAS
BASF SE
43.04
-0.27
-0.62%
DE:FRE
Fresenius SE & Co. KGaA
43.97
14.73
50.40%
DE:HEI
Heidelberg Materials
179.75
84.43
88.58%
DE:SIE
Siemens
219.70
52.77
31.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.