GEA Group AG (G1A) AI Stock Analysis

• Market Cap: €9.70B
• Dividend Yield: 1.92%
• Average Volume (3M): 363.43K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.82
• Revenue Growth: 1.79%
• EPS Growth: 0.06%
• Country: DE
• Employees: 19,047
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 0.62
• Shares Outstanding: 162,801,670
• 10 Day Avg. Volume: 270,492
• 30 Day Avg. Volume: 363,425
• PEG Ratio: 0.49
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.31
• 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: €55.88
• Price Target Upside: -5.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: €67.00 ▲(13.56%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 Business Overview & Revenue Model

Company Description

GEA Group Aktiengesellschaft engages in the development and production of systems and components for the food processing industry worldwide. The company operates through five divisions: Separation & Flow Technologies, Liquid & Power Technologies, Food & Health Technologies, Farm Technologies, and Heating & Refrigeration Technologies. It provides separators, decanters, homogenizers, valves, and pumps; and process solutions for the dairy, food, beverage, chemical, and other industries. The company also offers solutions for food processing and pharmaceutical industries, which includes preparation, marinating, and processing of meat, poultry, seafood, vegan products, pasta production, baking, slicing, packaging, and confectionary, as well as frozen food processing; and granulation systems and tablet presses. In addition, it provides integrated customer solutions for milk production and livestock farming, such as automatic milking, feeding systems, conventional milking solutions, manure handling, and digital herd management tools; and sustainable energy solutions for an array of industries including food, beverage, dairy, and oil and gas in the field of industrial refrigeration and temperature control. The company was formerly known as mg technologies ag and changed its name to GEA Group Aktiengesellschaft in 2005. GEA Group Aktiengesellschaft was founded in 1881 and is headquartered in Düsseldorf, Germany.

How the Company Makes Money

GEA 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.42B	5.37B	5.16B	4.70B	4.64B
	Gross Profit
1.94B	1.82B	1.72B	1.56B	1.42B
	EBIT
538.31M	504.90M	466.88M	380.90M	286.06M
	EBITDA
661.34M	657.37M	599.32M	506.82M	404.19M
	Net Income Common Stockholders
385.04M	392.76M	401.43M	305.17M	96.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
638.31M	627.93M	752.80M	972.58M	866.34M
	Total Assets
6.03B	5.95B	5.92B	5.87B	5.69B
	Total Debt
294.78M	256.69M	372.37M	428.53M	576.53M
	Net Debt
-326.14M	-367.19M	-329.97M	-499.66M	-245.21M
	Total Liabilities
3.61B	3.56B	3.64B	3.80B	3.77B
	Stockholders Equity
2.42B	2.40B	2.28B	2.08B	1.92B
Cash Flow		Free Cash Flow
473.01M	305.21M	265.53M	552.15M	617.63M
	Operating Cash Flow
710.12M	533.57M	469.33M	682.00M	715.22M
	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 Price: 59.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 59 is above the 20-day moving average (MA) of 58.95, above the 50-day MA of 56.16, and above the 200-day MA of 49.98, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.66 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIN	77 Outperform	$219.35B	33.82	17.20%	1.29%	0.78%	6.75%
SIE	75 Outperform	€168.35B	17.19	15.14%	2.41%	-0.04%	33.26%
G1A	75 Outperform	€9.70B	25.65	16.56%	1.92%	1.79%	0.06%
HEI	74 Outperform	€31.40B	17.84	9.69%	1.83%	-0.10%	-6.11%
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%
FRE	61 Neutral	€24.52B	58.70	6.28%	2.27%	-18.90%	―
BAS	55 Neutral	€37.86B	51.23	2.02%	5.31%	-2.04%	2258.97%