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GESCO AG (DE:GSC1)
XETRA:GSC1
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GESCO AG (GSC1) AI Stock Analysis

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DE:GSC1

GESCO AG

(XETRA:GSC1)

Rating:58Neutral
Price Target:
€18.00
▲(4.35% Upside)
GESCO AG's overall stock score is primarily influenced by its stable financial position and strong balance sheet. However, the lack of revenue growth and profitability challenges, combined with mixed technical indicators and a high P/E ratio, suggest caution. The absence of earnings call data and corporate events limits additional insights.

GESCO AG (GSC1) vs. iShares MSCI Germany ETF (EWG)

GESCO AG Business Overview & Revenue Model

Company DescriptionGesco 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 MoneyGESCO 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 has a stable financial position with a strong balance sheet, characterized by low leverage and a solid equity base. However, challenges in revenue growth and profitability are evident, with declining revenue and low net profit margins. Cash flow management requires attention due to declining free cash flow.
Income Statement
65
Positive
GESCO AG's income statement shows a mixed performance. The company has a stable gross profit margin of approximately 43.6% in TTM, indicating efficient production processes. However, the net profit margin is relatively low at 1.4% in TTM, reflecting challenges in translating revenue into profit. Revenue has declined by 2.5% in TTM, suggesting potential market challenges or competitive pressures. The EBIT and EBITDA margins are modest, at 3.4% and 7.5% respectively, indicating room for operational efficiency improvements.
Balance Sheet
75
Positive
The balance sheet of GESCO AG is strong with a low debt-to-equity ratio of 0.06 in TTM, indicating low financial leverage and a conservative capital structure. The return on equity is modest at 2.6%, suggesting moderate profitability relative to shareholder equity. The equity ratio stands at 59.2%, highlighting a solid equity base relative to total assets, which enhances financial stability.
Cash Flow
60
Neutral
GESCO AG's cash flow statement reveals some challenges. The free cash flow has decreased by 21.3% in TTM, indicating potential issues in cash generation or increased capital expenditures. The operating cash flow to net income ratio is 0.35, suggesting that operating cash flow is not significantly higher than net income, which could limit flexibility. The free cash flow to net income ratio is 0.80, showing that a substantial portion of net income is converted into free cash flow, albeit with room for improvement.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue498.21M513.81M560.72M582.27M488.05M397.23M
Gross Profit217.31M222.02M240.81M247.87M224.80M177.49M
EBITDA37.39M36.79M60.13M70.15M62.34M40.34M
Net Income6.96M4.44M20.89M33.82M26.86M6.88M
Balance Sheet
Total Assets444.69M433.32M468.96M473.91M449.54M390.82M
Cash, Cash Equivalents and Short-Term Investments52.30M39.45M34.46M36.25M57.71M48.00M
Total Debt15.88M74.88M105.08M94.99M95.61M97.93M
Total Liabilities175.83M163.23M191.31M199.21M193.80M163.05M
Stockholders Equity263.18M264.35M271.72M264.60M243.27M215.64M
Cash Flow
Free Cash Flow34.73M42.93M14.69M-1.81M43.80M48.73M
Operating Cash Flow43.35M51.21M32.18M10.69M51.70M59.65M
Investing Cash Flow-9.19M-6.33M-21.75M-10.41M-31.99M-4.24M
Financing Cash Flow-28.39M-47.47M-12.21M-21.88M-11.42M-34.43M

GESCO AG Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price17.25
Price Trends
50DMA
17.38
Negative
100DMA
17.22
Positive
200DMA
15.56
Positive
Market Momentum
MACD
-0.05
Positive
RSI
47.94
Neutral
STOCH
45.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:GSC1, the sentiment is Neutral. The current price of 17.25 is below the 20-day moving average (MA) of 17.43, below the 50-day MA of 17.38, and above the 200-day MA of 15.56, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 45.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:GSC1.

GESCO AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.66B14.6712.46%3.53%2.94%43.39%
58
Neutral
€186.98M26.112.65%0.58%-4.45%-16.88%
€158.08M8.359.98%
€224.08M-15.05%
€194.26M-0.56%
€239.21M4.272.17%
€180.98M17.7110.52%2.04%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:GSC1
GESCO AG
17.25
3.58
26.18%
GB:0RO8
Aumann AG
11.14
-0.77
-6.47%
GB:0G15
Koenig & Bauer
13.74
4.42
47.42%
GB:0ND2
LPKF Laser & Electronics
7.99
-0.19
-2.32%
GB:0RK5
MAX Automation
5.68
-0.22
-3.73%
GB:0JMU
Technotrans
26.00
9.20
54.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 05, 2025