GFT Technologies (GFT) AI Stock Analysis

• Market Cap: €447.01M
• Dividend Yield: 2.67%
• Average Volume (3M): 56.67K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.14
• Revenue Growth: 3.28%
• EPS Growth: -26.16%
• Country: DE
• Employees: 11,506
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.34
• Shares Outstanding: 26,325,947
• 10 Day Avg. Volume: 44,674
• 30 Day Avg. Volume: 56,675
• PEG Ratio: -3.29
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 8.61
• 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: €28.00
• Price Target Upside: 59.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: €20.50 ▲(16.88% Upside)

GFT Technologies demonstrates strong financial performance with solid revenue growth, profitability, and cash flow generation. The technical analysis suggests mixed signals with short-term bullish momentum but longer-term bearish trends. The valuation is reasonable with a decent P/E ratio and attractive dividend yield. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for GFT's services and effective market penetration, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing GFT to invest in growth opportunities and withstand economic fluctuations.

Financial Position

A balanced leverage approach and strong equity base provide GFT with financial stability, supporting sustainable growth and risk management.

Negative Factors

EPS Decline

A decline in EPS growth may indicate challenges in maintaining profitability, potentially impacting investor confidence and future earnings potential.

Profit Margins

Moderate profit margins suggest limited pricing power or cost pressures, which could affect long-term profitability and competitive positioning.

Industry Competition

Operating in a highly competitive industry may pressure GFT to continuously innovate and invest in differentiation to maintain market share.

GFT Technologies Business Overview & Revenue Model

Company Description

GFT Technologies (GFT) is a global technology consulting firm specializing in the financial services sector, with a focus on digital transformation, cloud solutions, and regulatory compliance. The company operates primarily in Europe and North America, providing services that encompass IT consulting, software development, and managed services. GFT's core products include innovative technology solutions tailored for banking, insurance, and capital markets, enabling clients to improve their operational efficiency and enhance customer experience.

How the Company Makes Money

GFT generates revenue through multiple streams, primarily from project-based consulting services, software licensing, and ongoing managed services. The company typically engages in long-term contracts with financial institutions, which provide a steady income base. Key revenue streams include customized IT solutions, application management, and cloud services that cater to the specific needs of its clients. Significant partnerships with major technology providers, such as Microsoft and IBM, enhance GFT's service offerings and drive additional revenue through joint ventures and collaborative projects. Furthermore, GFT capitalizes on the growing demand for regulatory compliance solutions, positioning itself as a trusted advisor in navigating complex financial regulations, which contributes to its earnings.

GFT Technologies Financial Statement Overview

Summary

GFT Technologies is performing well across all financial statements. The income statement shows solid revenue growth and profitability. The balance sheet reflects a healthy financial position with balanced leverage and a strong equity base. Cash flow metrics are impressive, showcasing strong cash generation capabilities. The company appears to be on a stable growth trajectory with efficient financial management.

Income Statement

GFT Technologies has shown strong revenue growth with a Revenue Growth Rate of 8.63% from 2023 to 2024. The Gross Profit Margin is moderate at 14.48%, while the Net Profit Margin stands at 5.34%. The EBIT and EBITDA margins are healthy at 8.15% and 11.00% respectively, reflecting efficient cost management and operational effectiveness.

Balance Sheet

The company has a manageable Debt-to-Equity Ratio of 0.59, indicating a balanced approach to leveraging. The Return on Equity (ROE) is decent at 17.14%, demonstrating effective use of equity to generate profits. The Equity Ratio is 41.54%, suggesting a strong equity base relative to total assets, providing financial stability.

Cash Flow

GFT Technologies exhibits strong cash flow performance with a Free Cash Flow Growth Rate of 86.38% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is robust at 1.56, indicating efficient cash conversion from profits. The Free Cash Flow to Net Income Ratio is 1.45, reflecting strong free cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	882.80M	870.92M	801.74M	730.14M	566.19M	444.85M
Gross Profit	123.69M	97.04M	141.00M	133.72M	94.97M	69.94M
EBITDA	81.87M	95.84M	92.86M	87.90M	61.35M	39.97M
Net Income	38.72M	46.48M	48.37M	46.25M	29.89M	9.94M
Balance Sheet
Total Assets	617.87M	652.65M	562.52M	497.77M	451.77M	414.87M
Cash, Cash Equivalents and Short-Term Investments	63.15M	83.66M	70.40M	78.26M	70.77M	70.87M
Total Debt	0.00	159.71M	103.97M	82.73M	102.83M	46.63M
Total Liabilities	366.70M	381.47M	321.45M	296.69M	291.11M	286.73M
Stockholders Equity	251.17M	271.18M	241.06M	201.08M	160.66M	128.14M
Cash Flow
Free Cash Flow	69.98M	67.54M	36.24M	49.64M	45.99M	55.72M
Operating Cash Flow	68.58M	72.42M	40.44M	57.49M	52.99M	60.25M
Investing Cash Flow	-4.72M	-84.24M	-50.31M	―	―	―
Financing Cash Flow	-58.30M	26.81M	15.11K	―	―	―

GFT Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:GFT, the sentiment is Negative. The current price of 17.54 is below the 20-day moving average (MA) of 17.73, below the 50-day MA of 17.84, and below the 200-day MA of 20.08, indicating a bearish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 52.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:GFT.

GFT Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFT	77 Outperform	€447.01M	11.54	13.78%	2.67%	3.28%	-26.16%
NA9	71 Outperform	€951.73M	19.46	24.22%	1.34%	5.63%	-7.19%
SHF	69 Neutral	€541.12M	25.73	19.08%	―	20.52%	84.19%
D6H	68 Neutral	€529.85M	21.63	15.66%	1.47%	11.88%	-3.36%
COK	64 Neutral	€746.91M	40.14	3.09%	3.70%	-0.61%	-52.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADN1	56 Neutral	€596.68M	48.66	6.82%	0.82%	12.37%	196.11%