GESCO AG (GSC1) AI Stock Analysis

• Market Cap: €160.42M
• Dividend Yield: 0.69%
• Average Volume (3M): 5.30K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.63
• Revenue Growth: -3.37%
• EPS Growth: 15.71%
• Country: DE
• Employees: 1,525
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.37
• Shares Outstanding: 10,839,499
• 10 Day Avg. Volume: 3,808
• 30 Day Avg. Volume: 5,301
• PEG Ratio: -0.40
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 3.23
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €16.50 ▲(9.27% Upside)

GESCO AG's overall stock score reflects a stable financial position with strong cash flow management, but challenges in revenue growth and return on equity. Technical analysis indicates mixed signals with short-term bullish momentum but longer-term bearish trends. Valuation metrics suggest potential overvaluation, which could limit upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Cash Flow Management

Efficient cash generation supports future investments and debt servicing, ensuring long-term financial stability and operational flexibility.

Balance Sheet Health

A solid balance sheet with moderate leverage provides financial stability, allowing the company to withstand economic fluctuations and pursue growth opportunities.

Profitability Margins

Consistent profitability margins indicate effective cost management and pricing strategies, supporting sustainable earnings over the long term.

Negative Factors

Revenue Growth Challenges

A negative revenue growth trend can hinder the company's ability to expand and compete, impacting long-term market position and profitability.

Low Return on Equity

Low ROE suggests inefficient use of shareholders' equity, potentially limiting the company's ability to generate returns and attract investment.

Operational Efficiency

Low operational efficiency may restrict profitability improvements, necessitating strategic initiatives to enhance productivity and cost management.

GESCO AG Business Overview & Revenue Model

Company Description

GESCO AG (GSC1) is a diversified industrial holding company based in Germany, primarily engaged in the acquisition and management of medium-sized companies across various sectors including manufacturing, technology, and services. The company focuses on enhancing the operational performance of its subsidiaries, which are involved in industries such as metal processing, mechanical engineering, and construction. GESCO AG aims to create sustainable value through strategic investments and operational improvements in its portfolio companies.

How the Company Makes Money

GESCO AG generates revenue primarily through its portfolio of subsidiaries, which operate in various industrial sectors. The company earns income through the consolidation of these subsidiaries' financial results, capitalizing on their operational profitability. Key revenue streams include sales of manufactured goods, provision of engineering and technical services, and consulting projects. GESCO AG also benefits from strategic partnerships and collaborations that enhance its market reach and operational capabilities. Additionally, the company may engage in mergers and acquisitions to expand its portfolio, further contributing to its revenue through the growth of its subsidiaries.

GESCO AG Financial Statement Overview

Summary

GESCO AG shows a stable financial position with a strong balance sheet, characterized by low leverage and a solid equity base. However, challenges exist in revenue growth and profitability, as indicated by declining revenue and low net profit margins. Cash flow management also requires attention due to declining free cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	495.63M	513.81M	560.72M	582.27M	488.05M	397.23M
Gross Profit	182.76M	222.02M	240.81M	247.87M	224.80M	177.49M
EBITDA	37.98M	36.79M	60.13M	70.15M	62.34M	40.34M
Net Income	7.40M	4.44M	20.89M	33.82M	26.86M	6.88M
Balance Sheet
Total Assets	450.14M	433.32M	468.96M	473.91M	449.54M	390.82M
Cash, Cash Equivalents and Short-Term Investments	43.62M	39.45M	34.46M	36.25M	57.71M	48.00M
Total Debt	79.16M	74.88M	105.08M	94.99M	95.61M	97.93M
Total Liabilities	178.24M	163.23M	191.31M	199.21M	193.80M	163.05M
Stockholders Equity	266.55M	264.35M	271.72M	264.60M	243.27M	215.64M
Cash Flow
Free Cash Flow	34.95M	42.93M	14.69M	-1.81M	43.80M	48.73M
Operating Cash Flow	45.22M	51.21M	32.18M	10.69M	51.70M	59.65M
Investing Cash Flow	-21.63M	-6.33M	-21.75M	-10.41M	-31.99M	-4.24M
Financing Cash Flow	-22.42M	-47.47M	-12.21M	-21.88M	-11.42M	-34.43M

GESCO AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 15.1 is above the 20-day moving average (MA) of 14.77, above the 50-day MA of 14.73, and below the 200-day MA of 16.25, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAG	75 Outperform	€142.16M	10.27	8.44%	1.82%	-26.69%	-1.95%
GSC1	67 Neutral	€160.42M	20.65	2.79%	0.69%	-3.37%	15.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TTR1	61 Neutral	€244.53M	22.81	10.85%	1.56%	―	―
SKB	52 Neutral	€176.82M	-11.48	-4.67%	―	4.81%	75.36%
LPK	48 Neutral	€151.14M	-149.76	-1.16%	―	-1.24%	41.31%
MXHN	48 Neutral	€174.87M	800.00	0.40%	―	-1.42%	-99.55%