Gerresheimer (GXI) AI Stock Analysis

• Market Cap: €940.87M
• Dividend Yield: 0.14%
• Average Volume (3M): 538.00K
• Price to Earnings (P/E): 39.4
• Beta (1Y): 1.38
• Revenue Growth: 11.83%
• EPS Growth: -79.57%
• Country: DE
• Employees: 13,632
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.69
• Shares Outstanding: 34,540,000
• 10 Day Avg. Volume: 723,177
• 30 Day Avg. Volume: 537,996
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €32.96
• Price Target Upside: 18.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: €32.00 ▲(15.52% Upside)

Gerresheimer's overall stock score is primarily influenced by its strong financial performance, despite some cash flow and profitability pressures. The technical analysis indicates a bearish trend, which negatively impacts the score. The valuation is moderate, suggesting the stock is fairly valued. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Gerresheimer's consistent revenue growth indicates strong market demand and business expansion, enhancing its competitive position in the healthcare sector.

Balance Sheet Strength

A strong equity position with minimal debt risk provides financial stability and flexibility for future investments and growth opportunities.

Operational Efficiency

Stable gross profit margins suggest good operational efficiency, allowing Gerresheimer to maintain profitability despite market fluctuations.

Negative Factors

Profitability Pressures

Decreased net profit margins highlight potential cost pressures, which could impact long-term profitability if not managed effectively.

Cash Flow Constraints

High capital expenditures leading to negative free cash flow pose a challenge for liquidity, potentially limiting the ability to fund new projects.

Operational Cash Generation Challenges

Decreased operating cash flow indicates potential challenges in generating cash from operations, which could affect the company's ability to sustain growth.

Gerresheimer Business Overview & Revenue Model

Company Description

Gerresheimer AG (GXI) is a leading global partner for the pharmaceutical and healthcare industries, specializing in the development and production of high-quality glass and plastic products. The company operates primarily in two sectors: Pharmaceuticals and Life Sciences. Gerresheimer's core offerings include glass vials, ampoules, prefillable syringes, and various plastic containers, as well as drug delivery systems and packaging solutions. With a strong emphasis on innovation and sustainability, Gerresheimer serves a diverse clientele, including major pharmaceutical companies, biotech firms, and healthcare providers.

How the Company Makes Money

Gerresheimer generates revenue primarily through the sale of its specialized glass and plastic products to the pharmaceutical and healthcare sectors. The company's revenue model includes direct sales and long-term contracts with key clients, which provide consistent income streams. Significant revenue comes from the production of packaging solutions that comply with stringent regulatory standards, catering to the growing demand for safe and effective drug delivery systems. Additionally, Gerresheimer invests in research and development to create innovative products that meet evolving market needs, enhancing its competitive edge. Partnerships with major pharmaceutical companies and collaborations in product development further contribute to its earnings, as they foster long-term relationships and create additional revenue opportunities.

Gerresheimer Financial Statement Overview

Summary

Gerresheimer shows strong revenue growth and a solid balance sheet with minimal debt. However, there are pressures on profitability and cash flow 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	2.19B	2.04B	1.99B	1.82B	1.50B	1.42B
Gross Profit	614.10M	607.76M	597.31M	546.81M	442.23M	437.61M
EBITDA	421.89M	405.97M	403.89M	340.20M	293.09M	301.41M
Net Income	63.26M	109.72M	116.13M	96.12M	83.79M	88.56M
Balance Sheet
Total Assets	4.76B	3.81B	3.43B	3.35B	2.88B	2.62B
Cash, Cash Equivalents and Short-Term Investments	203.46M	213.06M	122.34M	124.83M	133.78M	100.72M
Total Debt	0.00	1.28B	1.04B	1.22B	1.13B	1.05B
Total Liabilities	3.29B	2.27B	1.96B	2.08B	1.88B	1.72B
Stockholders Equity	1.44B	1.51B	1.45B	1.24B	981.32M	883.83M
Cash Flow
Free Cash Flow	-115.27M	-129.51M	-33.70M	-16.13M	8.45M	49.12M
Operating Cash Flow	239.33M	240.33M	294.34M	221.94M	212.08M	222.19M
Investing Cash Flow	-682.28M	-345.59M	-307.43M	-256.18M	-197.04M	-157.03M
Financing Cash Flow	524.55M	168.27M	40.35M	44.24M	8.03M	-52.15M

Gerresheimer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 27.7 is below the 20-day moving average (MA) of 32.18, below the 50-day MA of 38.84, and below the 200-day MA of 55.08, indicating a bearish trend. The MACD of -3.66 indicates Positive momentum. The RSI at 26.38 is Positive, neither overbought nor oversold. The STOCH value of 23.97 is Neutral, 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
JEN	75 Outperform	€1.16B	14.30	7.86%	1.83%	-2.59%	-3.21%
SRT	69 Neutral	€14.28B	98.10	5.01%	0.38%	5.82%	59.90%
AFX	67 Neutral	€4.08B	25.78	7.48%	1.27%	5.21%	-39.36%
PFV	64 Neutral	€1.53B	48.71	5.47%	4.72%	―	―
SRT3	64 Neutral	€14.28B	121.12	5.01%	0.31%	5.82%	59.90%
GXI	58 Neutral	€940.87M	39.41	1.65%	0.14%	11.83%	-79.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%