GFT Technologies (GFT) AI Stock Analysis

• Market Cap: €602.86M
• Dividend Yield: 2.18%
• Average Volume (3M): 63.44K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.06
• Revenue Growth: 8.63%
• EPS Growth: -3.90%
• Country: DE
• Employees: 11,506
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): 0.27
• Shares Outstanding: 26,325,947
• 10 Day Avg. Volume: 41,222
• 30 Day Avg. Volume: 63,439
• PEG Ratio: -1.92
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.04
• 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: €31.00
• Price Target Upside: 35.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: ―

GFT Technologies demonstrates strong financial performance with solid revenue growth, profitability, and impressive cash flow metrics. Its technical indicators show positive market momentum, although caution is advised due to potential overbought conditions. The stock is fairly valued with a reasonable P/E ratio and a decent dividend yield, making it an attractive option for investors seeking stable growth and income.

GFT Technologies Business Overview & Revenue Model

Company Description

GFT Technologies SE, together with its subsidiaries, provides digital transformation services. The company operates in two segments, Americas, UK & APAC; and Continental Europe. It offers consulting on the development and realization of IT strategies, development of bespoke IT solutions, implementation of sector-specific software, and maintenance and development of business-critical IT solutions. The company serves banking, insurance, and industrial sectors. It operates in Brazil, Germany, France, the United Kingdom, Hong Kong, Italy, Canada, Mexico, Poland, Switzerland, Singapore, Spain, the United States, and internationally. The company was founded in 1987 and is headquartered in Stuttgart, Germany.

How the Company Makes Money

GFT Technologies makes money primarily through its IT consulting and services offerings. The company generates revenue by providing technology solutions and consulting services to clients, particularly in the financial services, insurance, and manufacturing industries. Key revenue streams include digital transformation projects, cloud engineering services, application management, and data analytics. GFT also benefits from strategic partnerships with major technology providers, which enhance its service offerings and expand its market reach. The company’s earnings are further supported by long-term contracts and recurring service agreements with its clients.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	870.92M	801.74M	730.14M	566.19M	444.85M
Gross Profit	126.14M	141.00M	133.72M	94.97M	69.94M
EBITDA	95.84M	92.86M	87.90M	61.35M	39.97M
Net Income	46.48M	48.37M	46.25M	29.89M	9.94M
Balance Sheet
Total Assets	652.65M	562.52M	497.77M	451.77M	414.87M
Cash, Cash Equivalents and Short-Term Investments	83.66M	70.40M	78.26M	70.77M	70.87M
Total Debt	159.71M	103.97M	82.73M	102.83M	46.63M
Total Liabilities	381.47M	321.45M	296.69M	291.11M	286.73M
Stockholders Equity	271.18M	241.06M	201.08M	160.66M	128.14M
Cash Flow
Free Cash Flow	67.54M	36.24M	49.64M	45.99M	55.72M
Operating Cash Flow	72.42M	40.44M	57.49M	52.99M	60.25M
Investing Cash Flow	―	-50.31M	―	―	―
Financing Cash Flow	26.81M	15.11K	―	―	―

GFT Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.90
• 50DMA: Negative
• 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:GFT, the sentiment is Neutral. The current price of 22.9 is below the 20-day moving average (MA) of 23.21, below the 50-day MA of 23.18, and above the 200-day MA of 21.91, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 20.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:GFT.

GFT Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFT	79 Outperform	€602.86M	14.04	16.30%	2.18%	8.63%	-3.90%
Sector *	51 Neutral	AU$1.60B	2.35	-31.50%	3.04%	16.21%	-7.40%
0N5I	―	€593.53M	76.22	4.09%	0.83%	―	―
0O0F	―	€838.31M	33.32	4.13%	3.70%	―	―
0NJB	―	€522.21M	22.88	17.51%	―	―	―
0W19	―	€508.19M	20.24	16.57%	1.66%	―	―
NGRRF	―	$958.28M	19.70	21.45%	1.49%	―	―