Gerresheimer (GXI) AI Stock Analysis

• Market Cap: €1.67B
• Dividend Yield: 2.6%
• Average Volume (3M): 268.23K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.95
• Revenue Growth: 4.55%
• EPS Growth: -33.80%
• Country: DE
• Employees: 13,632
• Sector: Industrials
• Sector Strength: 88
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.46
• Shares Outstanding: 34,540,000
• 10 Day Avg. Volume: 542,190
• 30 Day Avg. Volume: 268,229
• PEG Ratio: -0.95
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.83
• 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: €69.13
• Price Target Upside: 44.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 63 Neutral
• Price Target: €52.00 ▲(8.60%Upside)

The overall score reflects strong financial health and robust revenue growth, but is tempered by bearish technical indicators and cash flow constraints. The stock's valuation is moderate but current price trends suggest caution. The lack of notable earnings call insights or corporate events means the score is primarily driven by financial performance and technical analysis.

Positive Factors

EBITDA Growth

The EBITDA margin for PPG showed some growth, driven by increased demand for RTF vials and expansion in moulded glass margins.

Order Book Strength

Order books for tubular glass are robust, suggesting potential incremental revenue growth.

Primary Packaging Glass Performance

Primary Packaging Glass showed 15% sequential quarter-on-quarter growth, leading to a beat at EBITDA driven by a stronger 4Q margin.

Negative Factors

Free Cash Flow Concerns

Free cash flow showed a significant negative change, driven by changes in net working capital, raising concerns among investors.

Guidance Skepticism

The guidance for the rest of the year is viewed with skepticism by investors due to the meaningful acceleration required, especially in free cash flow.

Organic Growth Decline

Organic growth in the first quarter was lower than expected, showing a decline compared to consensus estimates.

Gerresheimer Business Overview & Revenue Model

Company Description

Gerresheimer AG, together with its subsidiaries, manufactures and sells packaging products, and drug delivery-devices and solutions worldwide. It operates through Plastics & Devices, Primary Packaging Glass, and Advanced Technologies divisions. The Plastics & Devices division offers drug delivery systems, including inhalers, insulin pen systems, prefillable syringes, and diagnostic systems for the pharma, biotech, diagnostics, and medical technology industries; containers and closures, PET bottles, eye droppers, nasal sprays, nebulizers, applicators, and accessories for solid, liquid, and ophthalmic applications; and bottles and containers for nutritional supplements. The Primary Packaging Glass division offers glass primary packaging for pharma and cosmetics industries, such as infusion, dropper, and syrup bottles; injection vials, ampoules, and cartridges; miniature bottles and glass containers for liquid food, spices, and spirits; and packaging solutions for fragrances, deodorants, skin care, and wellness products, as well as beauty and pharmaceutical products. The Advanced Technologies division develops smart drug delivery systems, such as micro pumps, which are used to self-administer medication for Parkinson's disease or heart failure to pharmaceutical and biotech customers. The company was founded in 1864 and is headquartered in Düsseldorf, Germany.

How the Company Makes Money

Gerresheimer generates revenue primarily through the manufacture and sale of its glass and plastic packaging products and drug delivery systems. The company's key revenue streams include the Pharmaceutical Packaging and Systems division, which produces containers and systems for safe drug storage and administration, and the Plastic & Devices division, which focuses on complex drug delivery systems and medical devices. Gerresheimer's earnings are bolstered by strategic partnerships with major pharmaceutical and biotechnology companies, enabling it to develop customized solutions and maintain long-term contracts. Additionally, the company invests in research and development to innovate and expand its product portfolio, ensuring a steady stream of revenue from new and existing clients.

Gerresheimer Financial Statement Overview

Summary

Gerresheimer demonstrates strong revenue growth and a solid balance sheet with minimal debt. However, the income and cash flow statements indicate some profitability and cash flow pressures, primarily due to increased operating costs and capital expenditures. The company's financial health is robust, but managing cash flow and maintaining profitability margins will be crucial for sustaining long-term growth.

Income Statement

The income statement shows a consistent revenue growth from 2020 to TTM (Trailing-Twelve-Months) 2025, indicating strong market demand and business expansion. Gross profit margin remains stable at around 28-30%, suggesting good operational efficiency. However, net profit margin has slightly decreased in TTM due to reduced net income, highlighting potential cost pressures. EBIT and EBITDA margins are healthy, but EBIT has declined in TTM, which could reflect increased operating expenses or other operational challenges. Overall, the company demonstrates strong revenue growth with stable, yet slightly pressured, profitability margins.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of approximately 0 in TTM, indicating no financial leverage risk. The equity ratio stands at about 31%, reflecting a solid capital structure. Return on equity is slightly reduced in TTM due to lower net income, but it remains reasonable. The decrease in total liabilities over time strengthens the company's financial stability. Overall, the balance sheet demonstrates a robust financial position with strong equity backing and minimal debt risk.

Cash Flow

The cash flow statement shows variability in free cash flow, with a negative free cash flow in TTM due to high capital expenditures. Operating cash flow remains positive but has decreased in TTM, indicating potential operational cash generation challenges. The operating cash flow to net income ratio is positive but reducing, suggesting efficiency concerns. The free cash flow to net income ratio is negative in TTM, highlighting cash flow constraints. Overall, while operating cash flow is stable, the high capital expenditures impact free cash flow, posing a challenge for future liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.09B	2.04B	1.99B	1.82B	1.50B	1.42B
	Gross Profit
604.92M	607.76M	597.31M	546.81M	442.23M	437.61M
	EBIT
184.40M	197.47M	213.39M	169.31M	147.44M	156.46M
	EBITDA
399.81M	405.97M	403.89M	340.20M	293.09M	309.26M
	Net Income Common Stockholders
78.70M	109.72M	116.13M	96.12M	83.79M	88.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.85M	213.06M	122.34M	124.83M	133.78M	100.72M
	Total Assets
4.84B	3.81B	3.43B	3.35B	2.88B	2.62B
	Total Debt
0.00	1.28B	1.04B	1.22B	1.13B	1.05B
	Net Debt
-150.79M	1.10B	918.97M	1.11B	1.02B	957.33M
	Total Liabilities
3.30B	2.27B	1.96B	2.08B	1.88B	1.72B
	Stockholders Equity
1.51B	1.51B	1.45B	1.24B	981.32M	883.83M
Cash Flow		Free Cash Flow
-549.46M	-129.51M	-33.70M	-16.13M	8.45M	49.12M
	Operating Cash Flow
185.29M	240.33M	294.34M	221.94M	212.08M	222.19M
	Investing Cash Flow
-713.90M	-345.59M	-307.43M	-256.18M	-197.04M	-157.03M
	Financing Cash Flow
570.98M	168.27M	40.35M	44.24M	8.03M	-52.15M

Gerresheimer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.88
• 50DMA: Negative
• 100DMA: Negative
• 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:GXI, the sentiment is Negative. The current price of 47.88 is below the 20-day moving average (MA) of 55.81, below the 50-day MA of 57.11, and below the 200-day MA of 73.83, indicating a bearish trend. The MACD of -3.43 indicates Positive momentum. The RSI at 32.13 is Neutral, neither overbought nor oversold. The STOCH value of 10.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:GXI.

Gerresheimer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
GXI	63 Neutral	€1.67B	21.21	5.34%	2.60%	4.55%	-33.80%
0BFA		€38.82B	51.89	2.02%	5.24%	―	―
0LCR		€5.69B	21.61	15.87%	2.38%	―	―
0MPL		€462.77M	6.82	-16.90%	―	―	―
WKCMF		$3.69B	14.23	5.37%	3.72%	―	―
LIN	77 Outperform	$223.86B	34.51	17.20%	1.26%	0.78%	6.75%