GEA Group AG (G1A) AI Stock Analysis

• Market Cap: €9.19B
• Dividend Yield: 2.02%
• Average Volume (3M): 494.94K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.81
• Revenue Growth: 2.26%
• EPS Growth: 6.49%
• Country: DE
• Employees: 19,047
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.76
• Shares Outstanding: 162,801,670
• 10 Day Avg. Volume: 303,827
• 30 Day Avg. Volume: 494,943
• PEG Ratio: 23.73
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 16.94
• 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: €61.20
• Price Target Upside: 7.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €59.00 ▲(3.78% Upside)

The overall stock score of 61 reflects strong financial performance, which is the most significant factor, supported by robust revenue growth and profitability. However, bearish technical indicators and a relatively high P/E ratio suggest caution. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand and a strong market position, suggesting the company's products and services are well-received and competitive.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Profitability

Strong profitability margins indicate effective cost management and operational efficiency, supporting sustainable long-term growth and shareholder value.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth may signal potential cash management issues, which could impact the company's ability to fund operations and investments without external financing.

Debt Levels

Increasing debt levels, although currently low, could pose a risk if the trend continues, potentially affecting financial stability and increasing interest obligations.

Cash Flow Generation

While cash generation is currently adequate, the ratio indicates room for improvement to ensure robust cash flow that supports growth and financial commitments.

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 through several key streams, primarily by designing and manufacturing advanced machinery and equipment for its target industries. The company earns income from the direct sale of its products, including processing equipment and systems, which are essential for food, beverage, and pharmaceutical production. Additionally, GEA offers maintenance services, spare parts, and upgrades for existing installations, contributing to recurring revenue. The company's revenue is also bolstered by strategic partnerships with major players in various sectors, enabling GEA to expand its market reach and provide integrated solutions. Furthermore, GEA invests in research and development to innovate and adapt its offerings, which helps ensure a competitive edge and attract new customers.

GEA Group AG Financial Statement Overview

Summary

GEA Group AG demonstrates strong operational efficiency and a solid balance sheet with low leverage. However, the decline in revenue and free cash flow growth in TTM poses challenges. The company needs to focus on improving profitability and reversing the negative revenue trend to enhance its financial performance.

Income Statement

GEA Group AG's income statement shows a strong gross profit margin of 36.34% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 7.15%, suggesting room for improvement in profitability. The revenue growth rate has declined by 21.2% in TTM, which is a concern. Despite this, EBIT and EBITDA margins are healthy at 11.23% and 14.36%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet of GEA Group AG is robust with a low debt-to-equity ratio of 0.21, indicating conservative leverage. The return on equity is strong at 16.89%, showcasing effective use of equity to generate profits. The equity ratio stands at 39.69%, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 10.82% in TTM, which is a concern. However, the operating cash flow to net income ratio is 1.77, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.67, suggesting that a significant portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.44B	5.42B	5.37B	5.16B	4.70B	4.64B
Gross Profit	2.02B	1.94B	1.82B	1.72B	1.56B	1.42B
EBITDA	828.21M	713.78M	657.37M	599.32M	506.82M	404.19M
Net Income	405.86M	385.04M	392.76M	401.43M	305.17M	96.83M
Balance Sheet
Total Assets	5.71B	6.03B	5.95B	5.92B	5.87B	5.69B
Cash, Cash Equivalents and Short-Term Investments	341.14M	638.31M	627.93M	752.80M	972.58M	866.34M
Total Debt	406.84M	294.78M	256.69M	372.37M	428.53M	576.53M
Total Liabilities	3.37B	3.61B	3.56B	3.64B	3.80B	3.77B
Stockholders Equity	2.35B	2.42B	2.40B	2.28B	2.08B	1.92B
Cash Flow
Free Cash Flow	368.72M	473.01M	305.21M	265.53M	552.15M	617.63M
Operating Cash Flow	644.07M	710.12M	533.57M	469.33M	682.00M	715.22M
Investing Cash Flow	-242.48M	-205.63M	-200.64M	-175.78M	-112.47M	-91.20M
Financing Cash Flow	-446.50M	-483.94M	-397.80M	-497.55M	-479.52M	-138.64M

GEA Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.85
• 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 DE:G1A, the sentiment is Negative. The current price of 56.85 is below the 20-day moving average (MA) of 56.96, below the 50-day MA of 59.30, and below the 200-day MA of 59.34, indicating a bearish trend. The MACD of -0.78 indicates Negative momentum. The RSI at 44.97 is Neutral, neither overbought nor oversold. The STOCH value of 80.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:G1A.

GEA Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRN	75 Outperform	€4.21B	14.55	14.99%	1.95%	8.15%	16.17%
KSB3	74 Outperform	€1.67B	14.08	11.18%	2.83%	4.20%	-20.71%
JUN3	73 Outperform	€3.57B	12.53	11.92%	2.29%	-1.50%	2.01%
RAA	69 Neutral	€7.56B	29.64	31.18%	1.95%	5.82%	8.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
G1A	61 Neutral	€9.19B	22.91	17.71%	2.02%	2.26%	6.49%
DUE	54 Neutral	€1.45B	-45.34	-7.86%	3.35%	-18.21%	-137.62%