Gerresheimer (GXI) AI Stock Analysis

• Market Cap: €1.75B
• Dividend Yield: 0.08%
• Average Volume (3M): 247.59K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.07
• Revenue Growth: 9.32%
• EPS Growth: -45.05%
• Country: DE
• Employees: 13,632
• Sector: Industrials
• Sector Strength: 90
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.90
• Shares Outstanding: 34,540,000
• 10 Day Avg. Volume: 288,734
• 30 Day Avg. Volume: 247,590
• PEG Ratio: -0.78
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.15
• 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: €66.07
• Price Target Upside: 39.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: €55.00 ▲(16.53%Upside)

Gerresheimer's overall stock score reflects strong financial health with robust revenue growth and a solid balance sheet. However, technical analysis indicates bearish signals, and the valuation suggests limited upside due to a moderate P/E ratio and low dividend yield. The primary strengths are the company's financial performance, while technical and valuation concerns weigh on the overall score.

Positive Factors

EBITDA margin

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

Order books

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

Primary Packaging Glass

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

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

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 AG makes money primarily by manufacturing and selling high-quality packaging products for the pharmaceutical and healthcare sectors. The company's revenue model is based on selling its specialty glass and plastic containers to pharmaceutical companies, biotech firms, and healthcare providers worldwide. Key revenue streams include the sale of primary packaging products, such as syringes, vials, and ampoules, which are essential for the safe and secure delivery of medicines and vaccines. Additionally, Gerresheimer partners with pharmaceutical companies to develop customized packaging solutions, further enhancing its earnings. The company's strategic focus on innovation and quality ensures a competitive edge, allowing it to maintain long-term relationships with major clients in the healthcare industry.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.04B	1.99B	1.82B	1.50B	1.42B
Gross Profit	607.76M	597.31M	546.81M	442.23M	437.61M
EBITDA	405.97M	403.89M	340.20M	293.09M	301.41M
Net Income	109.72M	116.13M	96.12M	83.79M	88.56M
Balance Sheet
Total Assets	3.81B	3.43B	3.35B	2.88B	2.62B
Cash, Cash Equivalents and Short-Term Investments	213.06M	122.34M	124.83M	133.78M	100.72M
Total Debt	1.28B	1.04B	1.22B	1.13B	1.05B
Total Liabilities	2.27B	1.96B	2.08B	1.88B	1.72B
Stockholders Equity	1.51B	1.45B	1.24B	981.32M	883.83M
Cash Flow
Free Cash Flow	-129.51M	-33.70M	-16.13M	8.45M	49.12M
Operating Cash Flow	240.33M	294.34M	221.94M	212.08M	222.19M
Investing Cash Flow	-345.59M	-307.43M	-256.18M	-197.04M	-157.03M
Financing Cash Flow	168.27M	40.35M	44.24M	8.03M	-52.15M

Gerresheimer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.20
• 50DMA: Negative
• 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:GXI, the sentiment is Negative. The current price of 47.2 is below the 20-day moving average (MA) of 48.36, below the 50-day MA of 52.11, and below the 200-day MA of 67.25, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.72 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
GXI	66 Neutral	€1.75B	25.77	4.33%	0.08%	9.32%	-45.05%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
0DHC	―	€4.51B	28.77	7.48%	1.19%	―	―
0ZPV	―	€1.13B	13.60	9.13%	1.93%	―	―
0FQR	―	€1.52B	40.46		4.74%	―	―
0NIQ	―	€13.14B	124.63	3.55%	0.43%	―	―
0NIR	―	€13.14B	152.24	3.55%	0.35%	―	―