Grand City Properties SA (GYC) AI Stock Analysis

• Market Cap: €1.86B
• Dividend Yield: N/A
• Average Volume (3M): 114.69K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.48
• Revenue Growth: -1.22%
• EPS Growth: N/A
• Country: DE
• Employees: 614
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): 0.35
• Shares Outstanding: 176,187,900
• 10 Day Avg. Volume: 90,511
• 30 Day Avg. Volume: 114,686
• PEG Ratio: 0.46
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.12
• 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: €13.98
• Price Target Upside: 26.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: €12.50 ▲(12.82%Upside)

Grand City Properties SA demonstrates solid financial performance with strong profitability and stable cash flow. The stock's valuation appears attractive due to a low P/E ratio, though technical indicators suggest a neutral market position. The lack of a dividend yield and absence of earnings call data slightly temper the overall score.

Positive Factors

Financial Performance

FFO I for FY-24 was up 1.9% year-over-year to €187.5 million, within the guidance range and slightly above estimates.

Market Fundamentals

The underlying market fundamentals for residential landlords in Germany remain supportive for Grand City Properties.

Operational Efficiency

Grand City Properties' high operational efficiency, with an adjusted EBITDA margin of 78-79%, should help mitigate the impact from higher financing costs.

Negative Factors

Credit Rating

The latest review from Standard & Poor’s, which currently has a GCP rating of BBB+ with a negative outlook, is still pending.

Dividend Uncertainty

The dividend payment remains unclear and is subject to market conditions and AGM approval.

Sector Performance

The performance of Grand City Properties’ share price has recently been weaker relative to its sector peers.

Grand City Properties SA Business Overview & Revenue Model

Company Description

Grand City Properties S.A. engages in the residential real estate business in Germany, the United Kingdom, and internationally. The company invests in, manages, and rents real estate properties in North Rhine-Westphalia and Berlin; metropolitan regions of Dresden, Leipzig, and Halle; and the cities in the north of Germany, Bremen, Hamburg, and Hannover, as well as other urban centers, such as Nuremberg, Munch, Mannheim, Frankfurt, and London. Grand City Properties S.A. was founded in 2004 and is based in Luxembourg.

How the Company Makes Money

Grand City Properties SA generates revenue primarily through rental income from its extensive portfolio of residential properties. The company invests in underperforming properties, renovates them to increase their value, and subsequently leases them out to tenants, thus ensuring a steady income stream. Additionally, GYC may engage in strategic property sales, capitalizing on market conditions to optimize returns. The company's success is underpinned by its efficient property management practices, cost control measures, and its ability to identify and capitalize on real estate market opportunities.

Grand City Properties SA Financial Statement Overview

Summary

Grand City Properties SA shows solid financial health with strong profitability and liquidity. Positive revenue growth and stable cash flow generation are key strengths, with a high net profit margin of 52.96%. However, variability in EBIT margins and a lower return on equity suggest some areas for improvement.

Income Statement

Grand City Properties SA demonstrates strong profitability with a high net profit margin of 52.96% for TTM (Trailing-Twelve-Months), driven by efficient cost management. Revenue growth is positive with a 20.64% increase from the previous period, indicating a healthy expansion. However, variability in EBIT margins over the years suggests potential volatility in operating performance.

Balance Sheet

The company maintains a stable financial position with an equity ratio of 43.86%, reflecting a balanced approach to leveraging assets. The debt-to-equity ratio stands at 0.85, showing moderate leverage which is typical for the real estate industry. However, the lower return on equity of 5.43% in TTM indicates potential areas for improvement in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals a robust operating cash flow to net income ratio of 1.02, indicating efficient cash conversion from operations. Free cash flow is stable, supporting necessary capital expenditures without reliance on external financing. Consistent free cash flow generation reflects strong liquidity management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.69M	607.74M	396.04M	374.55M	372.46M
Gross Profit	168.99M	328.69M	129.75M	156.49M	145.98M
EBITDA	365.46M	317.79M	305.53M	299.38M	301.79M
Net Income	238.99M	-513.81M	153.96M	548.56M	395.07M
Balance Sheet
Total Assets	11.22B	10.92B	11.13B	11.56B	10.87B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.23B	427.36M	1.11B	1.69B
Total Debt	4.29B	4.25B	3.99B	4.51B	4.27B
Total Liabilities	5.80B	5.69B	5.22B	5.76B	5.31B
Stockholders Equity	4.91B	3.48B	5.25B	5.19B	5.02B
Cash Flow
Free Cash Flow	281.83M	246.86M	211.58M	208.69M	234.77M
Operating Cash Flow	284.46M	249.41M	216.12M	217.06M	242.15M
Investing Cash Flow	52.02M	147.80M	-167.69M	-198.46M	-391.67M
Financing Cash Flow	-93.37M	405.30M	-567.42M	-537.19M	650.62M

Grand City Properties SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.08
• 50DMA: Positive
• 100DMA: Positive
• 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:GYC, the sentiment is Positive. The current price of 11.08 is above the 20-day moving average (MA) of 11.03, above the 50-day MA of 11.03, and below the 200-day MA of 11.12, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 52.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:GYC.

Grand City Properties SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GYC	74 Outperform	€1.86B	8.42	6.27%	―	-1.22%	―
Sector *	65 Neutral	£953.03M	13.94	2.04%	5.96%	11.04%	38.13%
0I3Z	―	€1.43B	11.61	6.26%	19.26%	―	―
0QC9	―	€5.42B	21.17	3.32%	3.78%	―	―
0FJC	―	€678.17M	50.97	1.19%	4.43%	―	―
0JK4	―	€2.57B	23.75	3.56%	2.75%	―	―
AT1	70 Outperform	€3.40B	15.04	2.91%	―	-3.28%	―