Geratherm Medical (GME) AI Stock Analysis

• Market Cap: €20.80M
• Dividend Yield: 2.94%
• Average Volume (3M): 4.33K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.73
• Revenue Growth: -23.48%
• EPS Growth: N/A
• Country: DE
• Employees: 179
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.03
• Shares Outstanding: 5,444,998
• 10 Day Avg. Volume: 3,658
• 30 Day Avg. Volume: 4,334
• PEG Ratio: -0.70
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 15.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €3.50 ▲(2.94% Upside)

Geratherm Medical's overall stock score is driven by its mixed financial performance and bearish technical indicators. The company's strong balance sheet and improving cash flow are positive, but declining revenue growth and bearish market momentum are concerns. The attractive valuation with a low P/E ratio and good dividend yield provides some upside potential.

Positive Factors

Cash Flow Improvement

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and strengthening the balance sheet.

Strong Balance Sheet

Prudent leverage management provides stability and reduces financial risk, enabling the company to withstand economic fluctuations.

Positive Net Profit Margin

Maintaining profitability despite revenue challenges shows operational efficiency and the ability to generate returns for shareholders.

Negative Factors

Declining Revenue Growth

Significant revenue decline poses a risk to long-term growth prospects and may impact the company's ability to invest in future innovations.

Mixed Financial Performance

Inconsistent financial results could hinder strategic planning and investment, affecting long-term competitiveness and market position.

Gross Profit Margin Decrease

Decreasing gross margins may indicate rising costs or pricing pressures, potentially impacting profitability and operational efficiency.

Geratherm Medical Business Overview & Revenue Model

Company Description

Geratherm Medical AG operates as a medical technology company in Germany. It operates through Healthcare Diagnostic, Respiratory, Cardio/Stroke, and Medical Warming Systems segments. The Healthcare Diagnostic segment provides clinical thermometers; blood pressure monitors; and self-test diagnostic products for women, including pregnancy tests, chlamydia tests, urinary tract infections, diverse ovulation test solutions, and pH tests. The Respiratory segment develops and manufactures products primarily for pulmonary and cardiopulmonary function diagnostics. The Medical Warming Systems segment offers MRI-compatible incubators for premature and newborn infants under the LMT brand. The Cardio/Stroke segment offers stroke risk analysis products for the detection of atrial fibrillation. The company markets its products through pharmacies, hospitals, and clinics. It exports its products to approximately 60 countries. The company was founded in 1990 and is headquartered in Geschwenda, Germany.

How the Company Makes Money

Geratherm Medical generates revenue through the sale of its medical devices and related services. The primary revenue streams come from direct sales of its products to hospitals, clinics, and healthcare providers, as well as through distribution partnerships that extend its market reach. The company also engages in research and development collaborations, which can lead to additional funding and shared revenue opportunities. Additionally, Geratherm Medical benefits from ongoing service contracts and maintenance agreements for its devices, contributing to a steady income stream. Strategic partnerships with healthcare institutions and participation in tenders and government contracts further enhance its financial performance.

Geratherm Medical Financial Statement Overview

Summary

Geratherm Medical shows mixed financial performance. The income statement indicates profitability challenges with a significant decline in revenue growth, but maintains a positive net profit margin. The balance sheet is strong with low leverage, and cash flow is improving, though not all net income translates into free cash flow.

Income Statement

Geratherm Medical's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 109.5%, which is concerning. However, the company maintains a positive net profit margin of 12.27%, indicating profitability despite revenue challenges. The gross profit margin has decreased over time, reflecting potential cost management issues. Overall, the income statement reflects moderate profitability with significant revenue growth challenges.

Balance Sheet

The balance sheet of Geratherm Medical is relatively strong, with a low debt-to-equity ratio of 0.126 in the TTM, indicating prudent leverage management. The return on equity is modest at 8.38%, suggesting efficient use of equity to generate profits. The equity ratio remains stable, showing a solid equity base. Overall, the balance sheet reflects financial stability with low leverage and moderate returns on equity.

Cash Flow

Geratherm Medical's cash flow statement shows a positive trajectory in free cash flow growth at 23.03% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 3.18, suggesting robust cash flow relative to net income. However, the free cash flow to net income ratio is slightly below 1, indicating that not all net income translates into free cash flow. Overall, the cash flow statement reflects improving cash generation with some areas for further enhancement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.29M	20.43M	20.96M	25.85M	24.64M	27.47M
Gross Profit	5.96M	12.78M	6.27M	6.38M	16.32M	17.60M
EBITDA	-1.94M	2.95M	4.18M	3.37M	2.20M	4.35M
Net Income	1.75M	705.17K	1.11M	1.02M	122.23K	2.05M
Balance Sheet
Total Assets	27.53M	28.54M	35.72M	38.38M	34.56M	35.99M
Cash, Cash Equivalents and Short-Term Investments	9.61M	9.64M	7.74M	10.89M	6.47M	10.26M
Total Debt	2.62M	3.28M	7.23M	9.29M	9.32M	10.40M
Total Liabilities	6.95M	7.71M	13.11M	16.15M	15.93M	16.07M
Stockholders Equity	20.83M	21.02M	22.33M	22.34M	18.52M	20.30M
Cash Flow
Free Cash Flow	2.68M	1.23M	-212.00K	-133.00K	-353.00K	1.14M
Operating Cash Flow	2.79M	1.87M	1.43M	2.61M	917.00K	3.92M
Investing Cash Flow	3.89M	3.82M	-2.09M	-767.00K	3.00K	-3.79M
Financing Cash Flow	-2.43M	-2.69M	-3.09M	4.35M	-3.52M	684.00K

Geratherm Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:GME, the sentiment is Negative. The current price of 3.4 is below the 20-day moving average (MA) of 3.44, below the 50-day MA of 3.94, and above the 200-day MA of 3.34, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 48.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:GME.

Geratherm Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GME	60 Neutral	€20.80M	11.72	8.35%	2.94%	-23.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AAQ1	40 Underperform	€18.92M	-4.07	-34.28%	―	-0.59%	24.03%