GESCO AG (GSC1) AI Stock Analysis

• Market Cap: €196.19M
• Dividend Yield: 0.58%
• Average Volume (3M): 3.04K
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.46
• Revenue Growth: -4.93%
• EPS Growth: -70.09%
• Country: DE
• Employees: 1,525
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 0.44
• Shares Outstanding: 10,839,499
• 10 Day Avg. Volume: 4,602
• 30 Day Avg. Volume: 3,041
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €18.50
• Price Target Upside: 7.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: €18.50 ▲(7.56% Upside)

GESCO AG's overall stock score is driven primarily by its strong cash flow management and stable balance sheet, despite challenges in revenue and margin performance. Technical indicators suggest potential short-term weakness, while valuation metrics indicate the stock may be overvalued. The absence of earnings call data and corporate events limits additional insights.

GESCO AG Business Overview & Revenue Model

Company Description

Gesco AG operates in the process, resource, healthcare, and infrastructure technology sectors in Germany and internationally. It develops, produces, and markets plastic spools and injection-molded technical parts. The company also provides special steels, steel foundry, casting, and coating and hardening products. In addition, it turns parts made of brass, aluminum, red brass, and Cuphin in diameters of 6 to 140 mm; and offers galvanic surface finishing, assembly installation, thermal material treatment, soldering, welding, and compression services. Further, it manufactures machine cladding and frames, covers, housings, and containers from high-end stainless-steel sheets; milling machines for linear tooth profiles, and clamping systems; straightening machines and wheel presses for rolling stock; and processing equipment for pharmaceutical, food, water technology, and chemical industries, as well as processes strip steel. Additionally, it offers suspension systems and control box technology for use in medical and automation technology, mechanical engineering, and plant construction; paper sticks for confectionery and hygiene industries; and safety equipment for loading and unloading liquid and gaseous materials on and off ships and tankers. The company was founded in 1989 and is headquartered in Wuppertal, Germany.

How the Company Makes Money

GESCO AG generates revenue primarily through the operations of its subsidiaries, which produce and sell a range of industrial products and services. The company’s revenue model is based on the profitability of these subsidiaries, which contribute to GESCO's consolidated earnings. Key revenue streams include sales of machinery and equipment, maintenance services, and technological solutions tailored to clients’ specific needs. Additionally, GESCO benefits from strategic partnerships and acquisitions that enhance its market presence and operational capabilities, allowing it to leverage synergies and optimize costs. The company's ability to identify and integrate high-potential SMEs into its portfolio is a significant factor in sustaining and growing its revenue.

GESCO AG Financial Statement Overview

Summary

GESCO AG presents a mixed financial picture. While cash flows are generally strong, indicating good liquidity management, income statement challenges such as declining revenue and margins could signal operational inefficiencies or external pressures. The balance sheet displays a stable capital structure, but declining ROE may impact investor confidence. Strategic focus on improving profitability and maintaining growth would be beneficial.

Income Statement

GESCO AG experienced fluctuating revenue over the years, with a decline in the latest year from 2023 to 2024. The gross profit margin has been inconsistent, reflecting changes in cost structure or pricing strategies. Net profit margin showed volatility, indicating potential issues in cost management or revenue generation. The EBIT and EBITDA margins have decreased recently, suggesting challenges in maintaining operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating balanced leverage. However, fluctuations in stockholders' equity suggest varying profitability or asset revaluations. The equity ratio remains stable, indicating a solid capital structure. Return on Equity (ROE) is showing a downward trend, which could be a concern for investors looking for consistent returns.

Cash Flow

GESCO AG's operating cash flow is generally positive, supporting its operational needs. The free cash flow growth rate has been positive, showing improvement in cash generation capabilities. The company maintains a healthy operating cash flow to net income ratio, indicating strong cash conversion from profits. However, fluctuations in free cash flow to net income ratio suggest potential volatility in cash distributions.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	513.81M	560.72M	582.27M	488.05M	397.23M
Gross Profit	222.02M	240.81M	247.87M	224.80M	177.49M
EBITDA	36.79M	60.13M	70.15M	62.34M	40.34M
Net Income	4.44M	20.89M	33.82M	26.86M	6.88M
Balance Sheet
Total Assets	433.32M	468.96M	473.91M	449.54M	390.82M
Cash, Cash Equivalents and Short-Term Investments	39.45M	34.46M	36.25M	57.71M	48.00M
Total Debt	74.88M	105.08M	94.99M	95.61M	97.93M
Total Liabilities	163.23M	191.31M	199.21M	193.80M	163.05M
Stockholders Equity	264.35M	271.72M	264.60M	243.27M	215.64M
Cash Flow
Free Cash Flow	42.93M	14.69M	-1.81M	43.80M	48.73M
Operating Cash Flow	51.21M	32.18M	10.69M	51.70M	59.65M
Investing Cash Flow	-6.33M	-21.75M	-10.41M	-31.99M	-4.24M
Financing Cash Flow	-47.47M	-12.21M	-21.88M	-11.42M	-34.43M

GESCO AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.20
• 50DMA: Positive
• 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:GSC1, the sentiment is Positive. The current price of 17.2 is below the 20-day moving average (MA) of 17.49, below the 50-day MA of 17.41, and above the 200-day MA of 15.23, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 36.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:GSC1.

GESCO AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAG	73 Outperform	€171.86M	7.99	11.37%	1.84%	3.32%	83.26%
TTR1	73 Outperform	€165.09M	16.80	10.02%	2.24%	―	―
MXHN	72 Outperform	€240.86M	4.39	2.17%	―	-9.78%	―
Sector *	63 Neutral	$10.83B	16.63	7.96%	2.06%	2.20%	-16.67%
GSC1	63 Neutral	€196.19M	41.15	1.73%	0.58%	-4.93%	-70.09%
SKB	58 Neutral	€244.90M	―	-15.05%	―	2.41%	-42.66%
LPK	48 Neutral	€196.22M	―	-0.56%	―	-3.59%	-122.47%