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Gerresheimer AG (DE:GXI)
XETRA:GXI

Gerresheimer (GXI) AI Stock Analysis

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Gerresheimer

(XETRA:GXI)

Rating:63Neutral
Price Target:
€52.00
▲(5.82%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 (GXI) vs. iShares MSCI Germany ETF (EWG)

Gerresheimer Business Overview & Revenue Model

Company DescriptionGerresheimer 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 MoneyGerresheimer 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
75
Positive
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
80
Positive
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
65
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.09B2.04B1.99B1.82B1.50B1.42B
Gross Profit
604.92M607.76M597.31M546.81M442.23M437.61M
EBIT
184.40M197.47M213.39M169.31M147.44M156.46M
EBITDA
399.81M405.97M403.89M340.20M293.09M309.26M
Net Income Common Stockholders
78.70M109.72M116.13M96.12M83.79M88.56M
Balance SheetCash, Cash Equivalents and Short-Term Investments
183.85M213.06M122.34M124.83M133.78M100.72M
Total Assets
4.84B3.81B3.43B3.35B2.88B2.62B
Total Debt
0.001.28B1.04B1.22B1.13B1.05B
Net Debt
-150.79M1.10B918.97M1.11B1.02B957.33M
Total Liabilities
3.30B2.27B1.96B2.08B1.88B1.72B
Stockholders Equity
1.51B1.51B1.45B1.24B981.32M883.83M
Cash FlowFree Cash Flow
-549.46M-129.51M-33.70M-16.13M8.45M49.12M
Operating Cash Flow
185.29M240.33M294.34M221.94M212.08M222.19M
Investing Cash Flow
-713.90M-345.59M-307.43M-256.18M-197.04M-157.03M
Financing Cash Flow
570.98M168.27M40.35M44.24M8.03M-52.15M

Gerresheimer Technical Analysis

Technical Analysis Sentiment
Negative
Last Price49.14
Price Trends
50DMA
59.27
Negative
100DMA
67.09
Negative
200DMA
74.84
Negative
Market Momentum
MACD
-2.55
Positive
RSI
32.93
Neutral
STOCH
9.01
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 49.14 is below the 20-day moving average (MA) of 58.61, below the 50-day MA of 59.27, and below the 200-day MA of 74.84, indicating a bearish trend. The MACD of -2.55 indicates Positive momentum. The RSI at 32.93 is Neutral, neither overbought nor oversold. The STOCH value of 9.01 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.49B12.285.32%248.53%4.08%-12.00%
DEGXI
63
Neutral
€1.65B21.575.34%2.62%4.55%-33.80%
€37.47B50.332.02%5.40%
€5.38B20.3615.87%2.43%
€449.93M6.82-16.90%
$3.53B13.535.37%3.69%
LILIN
77
Outperform
$222.10B34.2417.20%1.20%0.78%6.75%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:GXI
Gerresheimer
49.14
-58.76
-54.46%
GB:0BFA
BASF SE
41.94
-2.37
-5.35%
GB:0LCR
Fuchs Petrolub
48.66
4.20
9.45%
GB:0MPL
SGL Carbon
3.80
-3.63
-48.86%
WKCMF
Wacker Chemie AG
70.50
-32.60
-31.62%
LIN
Linde
470.26
41.94
9.79%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.