GFT Technologies (GFT) AI Stock Analysis

• Market Cap: €503.88M
• Dividend Yield: 2.65%
• Average Volume (3M): 56.67K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.17
• Revenue Growth: 3.28%
• EPS Growth: -26.16%
• Country: DE
• Employees: 11,506
• Sector: General
• Sector Strength: N/A
• 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: 47.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €22.50 ▲(18.80% Upside)

The score is driven primarily by solid but weakening financial performance, with TTM revenue decline and margin compression offsetting otherwise moderate leverage and positive cash generation. Technicals add support due to an uptrend and positive momentum, while valuation is reasonable with a mid P/E and a ~2.4% dividend yield.

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 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 generates revenue primarily through its IT service offerings, which include consulting, software development, and managed services. The company's revenue model is based on project-based contracts, time-and-materials billing, and retainer agreements with its clients. Key revenue streams include bespoke software solutions for financial institutions, regulatory reporting services, and cloud migration projects. Additionally, GFT has established significant partnerships with major technology providers, which enhance its service portfolio and allow it to tap into new markets, thereby contributing to its overall earnings.

GFT Technologies Financial Statement Overview

Summary

Overall fundamentals are healthy (moderate leverage, positive profitability, and solid free-cash-flow generation), but the TTM profile has weakened materially with a sharp revenue decline (-24.5%), margin compression, and lower net income versus 2023–2024.

Income Statement

Revenue expanded strongly from 2020–2024, but TTM (Trailing-Twelve-Months) shows a sharp revenue decline (-24.5%), signaling a near-term slowdown. Profitability is still positive in TTM (net margin ~4.0%), but margins have compressed versus prior years (TTM gross margin ~13.4% vs ~17.6% in 2023; TTM operating margin ~6.3% vs ~8–9% in 2022–2024). Net income is also lower in TTM than 2023–2024, suggesting weaker operating leverage recently despite a still-profitable model.

Balance Sheet

Leverage looks manageable: TTM debt-to-equity is ~0.55, improved from 2021 (~0.64) and broadly in a moderate range over time. Equity remains solid at ~€252m (TTM) against ~€139m of total debt, providing balance-sheet flexibility. Returns on equity are healthy but trending down (TTM ~13.3% vs ~17.1% in 2024 and ~20.1% in 2023), indicating profitability has softened even though the capital structure remains reasonable.

Cash Flow

Cash generation is positive, with TTM operating cash flow (~€52m) and free cash flow (~€53m) both solid and free cash flow closely tracking earnings (TTM free cash flow is ~90% of net income). However, the trajectory has weakened: TTM free cash flow growth is sharply negative (-23.9%) versus positive growth in 2024, and operating cash flow is also down versus 2024. Overall cash conversion remains decent, but recent volatility and slowing momentum temper the score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	880.64M	870.92M	801.74M	730.14M	566.19M	444.85M
Gross Profit	117.86M	97.04M	141.00M	133.72M	94.97M	69.94M
EBITDA	75.98M	95.84M	92.86M	87.90M	61.35M	39.97M
Net Income	34.97M	46.48M	48.37M	46.25M	29.89M	9.94M
Balance Sheet
Total Assets	626.28M	652.65M	562.52M	497.77M	451.77M	414.87M
Cash, Cash Equivalents and Short-Term Investments	51.23M	83.66M	70.40M	78.26M	70.77M	70.87M
Total Debt	139.26M	159.71M	103.97M	82.73M	102.83M	46.63M
Total Liabilities	374.13M	381.47M	321.45M	296.69M	291.11M	286.73M
Stockholders Equity	252.14M	271.18M	241.06M	201.08M	160.66M	128.14M
Cash Flow
Free Cash Flow	46.95M	67.54M	36.24M	49.64M	45.99M	55.72M
Operating Cash Flow	52.03M	72.42M	40.44M	57.49M	52.99M	60.25M
Investing Cash Flow	-11.78M	-84.24M	-50.31M	-7.68M	-7.57M	-10.98M
Financing Cash Flow	-44.19M	26.81M	15.11K	-44.94M	-47.86M	-29.05M

GFT Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 18.94 is below the 20-day moving average (MA) of 20.54, below the 50-day MA of 19.42, and below the 200-day MA of 19.80, indicating a bearish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 13.48 is Positive, 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	69 Neutral	€503.88M	14.90	13.78%	2.65%	3.28%	-26.16%
NA9	68 Neutral	€853.52M	17.70	24.22%	1.29%	5.63%	-7.19%
COK	65 Neutral	€836.73M	49.78	3.09%	3.78%	-0.61%	-52.28%
SHF	65 Neutral	€596.39M	22.73	19.08%	―	20.52%	84.19%
D6H	62 Neutral	€591.50M	26.95	13.54%	1.43%	7.30%	-15.88%
ADN1	56 Neutral	€476.56M	36.55	6.82%	0.85%	12.37%	196.11%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%