Gerresheimer (GXI) AI Stock Analysis

• Market Cap: €880.08M
• Dividend Yield: 0.15%
• Average Volume (3M): 538.00K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 1.40
• 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: -2.73
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -19.92
• 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: €32.69
• Price Target Upside: 26.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €26.00 ▲(0.54% Upside)

Gerresheimer's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is offset by technical indicators pointing to bearish momentum and a high valuation. The lack of earnings call data and corporate events further limits the assessment. The company's ability to manage cash flow and profitability margins will be crucial for future performance.

Positive Factors

Revenue Growth

Gerresheimer's consistent revenue growth indicates strong market demand and business expansion, supporting long-term sustainability.

Balance Sheet Health

A strong equity position with minimal debt risk enhances financial stability, providing resilience against economic fluctuations.

Market Position

Gerresheimer's leadership in pharmaceuticals and healthcare, with specialized products, secures its competitive advantage and market position.

Negative Factors

Profitability Margins

Decreased net profit margin due to cost pressures may impact long-term profitability if not managed effectively.

Cash Flow Constraints

High capital expenditures leading to negative free cash flow pose liquidity challenges, potentially affecting future investments.

Operational Efficiency Concerns

Reducing operating cash flow efficiency suggests potential operational challenges that could hinder cash generation ability.

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 sale of its packaging products and solutions to pharmaceutical and healthcare companies. Key revenue streams include the production of primary packaging for injectable medications, which is a rapidly growing market driven by the increasing demand for biologics and biosimilars. Additionally, the company earns income from providing customized solutions and services, including design and development support for its clients. Significant partnerships with major pharmaceutical firms and a global manufacturing footprint enhance its market presence and contribute to consistent earnings. The company's commitment to quality and regulatory compliance also positions it favorably in securing long-term contracts and collaborations.

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	2.19B	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: Neutral
• Last Price: 25.86
• 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 Neutral. The current price of 25.86 is above the 20-day moving average (MA) of 24.94, below the 50-day MA of 27.98, and below the 200-day MA of 47.65, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 64.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:GXI.

Gerresheimer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JEN	72 Outperform	€1.09B	14.09	7.17%	1.96%	-5.27%	-13.70%
AFX	66 Neutral	€3.83B	24.17	7.48%	1.38%	5.21%	-39.36%
SRT	65 Neutral	€14.33B	94.60	5.01%	0.37%	5.82%	59.90%
SRT3	65 Neutral	€15.56B	130.95	5.01%	0.29%	5.82%	59.90%
PFV	64 Neutral	€1.54B	49.09	5.47%	4.69%	―	―
GXI	57 Neutral	€880.08M	37.69	1.65%	0.15%	11.83%	-79.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%