Gestamp Automocion (GEST) AI Stock Analysis

• Market Cap: €1.80B
• Dividend Yield: 3.35%
• Average Volume (3M): 318.09K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.62
• Revenue Growth: -4.69%
• EPS Growth: -8.38%
• Country: ES
• Employees: 40,032
• Sector: General
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): 0.05
• Shares Outstanding: 575,514,340
• 10 Day Avg. Volume: 366,310
• 30 Day Avg. Volume: 318,093
• PEG Ratio: -0.23
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 12.19
• 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: €2.80
• Price Target Upside: -9.97% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €3.00 ▼(-3.54% Downside)

Gestamp Automocion's overall stock score reflects a mix of financial challenges and technical weaknesses, partially offset by attractive valuation metrics. The company's high leverage and declining cash flow are significant concerns, while the stock's undervaluation and dividend yield offer some potential upside.

Positive Factors

Long-term OEM contracts & partnerships

Gestamp's revenue model anchored in long-term OEM contracts provides multi-year revenue visibility and stable production volumes. This structural customer lock-in supports capacity planning, steady utilization of capital-intensive tooling and presses, and underpins predictable cash flows for reinvestment and R&D.

Solid gross profit margin

A 33.8% gross margin indicates durable cost control and value capture in metal forming and assembly. Sustained gross margins reflect manufacturing scale, process know-how and some pricing power, enabling the company to absorb commodity swings and fund engineering, product development and customer program launches.

Global market position and diversified customers

Gestamp's global footprint and broad OEM customer base reduce reliance on any single market or program. Scale across regions lets it bid for multi-market platform contracts, leverage cross-border engineering expertise, and mitigate localized demand shocks, strengthening long-term revenue stability.

Negative Factors

High leverage

A 1.63 debt-to-equity ratio signals material financial leverage for a cyclical auto supplier. High debt increases interest costs and reduces flexibility to invest or weather downturns, raising refinancing and covenant risk if automotive demand softens or margins compress over the medium term.

Weak cash generation

Declining free cash flow and a low operating cash flow to net income ratio indicate limited internal funding for capex, deleveraging or dividends. For a capital-intensive supplier, weak cash conversion heightens dependence on external financing and constrains strategic investments and margin-improvement programs.

Revenue decline and low net margin

Falling revenue alongside a thin 1.34% net margin suggests structural pressure on profitability despite solid gross margins. This points to fixed-cost absorption issues, pricing or mix pressure, and the need for operational improvements to convert top-line scale into sustainable bottom-line returns over the medium term.

Gestamp Automocion Business Overview & Revenue Model

Company Description

Gestamp Automoción, S.A. designs, develops, manufactures, and sells metal automotive components in Europe, North America, South America, and Asia. The company offers Body-in-White products, such as bonnets, roofs, doors, and mudguards, as well as other surface and assembly parts; and structural and crash-related elements that include floors, pillars, rails, and wheel arches. It also provides chassis parts, such as systems; frames and related parts comprising front and rear axles and couplings; control arms; and integrated couplings. In addition, the company offers mechanism parts, including hinges, door checks, electrical systems, and powered systems, as well as driver controls. It provides its products to manufacturers of light vehicles. The company was incorporated in 1997 and is headquartered in Madrid, Spain. Gestamp Automoción, S.A. is a subsidiary of Gestamp 2020, S.L.

How the Company Makes Money

Gestamp generates revenue primarily through the sale of its automotive components and systems to car manufacturers. The company's revenue model is based on long-term contracts and partnerships with major automotive OEMs (Original Equipment Manufacturers), enabling stable cash flows. Key revenue streams include the manufacturing and supply of metal components, assembly services, and engineering solutions tailored to client specifications. Additionally, Gestamp invests in research and development to innovate new products and improve existing ones, which helps maintain competitive pricing and enhance profitability. Strategic partnerships with automotive leaders and a focus on emerging markets further contribute to the company's earnings.

Gestamp Automocion Financial Statement Overview

Summary

Gestamp Automocion's financial statements indicate challenges in profitability and cash flow management, with high leverage posing potential risks. While gross profit margins are solid, declining revenue and cash flow growth highlight areas needing strategic focus.

Income Statement

Gestamp Automocion's income statement shows a mixed performance. The TTM gross profit margin is 33.8%, indicating a solid ability to cover costs, though it has declined from previous periods. The net profit margin is low at 1.34%, reflecting challenges in converting revenue into profit. Revenue has decreased by 1.24% in the TTM, suggesting potential market pressures or operational inefficiencies. EBIT and EBITDA margins are stable, but slightly below industry averages, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.63 in the TTM, which could pose financial risk if not managed carefully. Return on equity is modest at 7.06%, suggesting moderate profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the high leverage indicates a reliance on debt financing, which could impact financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow by 14.77% in the TTM, which may affect the company's ability to fund operations and growth. The operating cash flow to net income ratio is 0.26, indicating that operating cash flow is not significantly higher than net income, which could limit financial flexibility. The free cash flow to net income ratio is 0.22, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.56B	12.00B	12.27B	10.73B	8.09B	7.46B
Gross Profit	3.91B	4.60B	4.50B	3.95B	3.36B	3.00B
EBITDA	1.26B	1.30B	1.32B	1.20B	1.01B	613.26M
Net Income	166.16M	188.49M	280.67M	259.97M	215.46M	-143.86M
Balance Sheet
Total Assets	10.18B	10.49B	9.93B	10.04B	8.64B	9.36B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.38B	1.32B	1.72B	1.49B	2.31B
Total Debt	3.30B	3.48B	3.38B	3.94B	3.81B	4.82B
Total Liabilities	7.10B	7.48B	7.07B	7.28B	6.42B	7.40B
Stockholders Equity	2.16B	2.28B	2.20B	2.13B	1.75B	1.51B
Cash Flow
Free Cash Flow	230.40M	116.04M	211.30M	261.70M	213.95M	322.75M
Operating Cash Flow	1.20B	1.07B	1.16B	1.04B	827.39M	880.40M
Investing Cash Flow	-649.67M	-1.02B	-924.19M	-806.61M	-631.72M	-479.42M
Financing Cash Flow	-339.33M	-70.82M	-726.93M	-39.16M	-1.07B	1.29B

Gestamp Automocion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:GEST, the sentiment is Positive. The current price of 3.11 is above the 20-day moving average (MA) of 3.08, above the 50-day MA of 3.00, and above the 200-day MA of 3.07, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:GEST.

Gestamp Automocion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIE	74 Outperform	€3.48B	10.63	23.31%	3.23%	-2.79%	0.61%
TUB	65 Neutral	€398.20M	13.05	11.13%	6.29%	-10.37%	38.82%
GEST	58 Neutral	€1.80B	10.73	7.70%	3.35%	-4.69%	-8.38%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
PSG	52 Neutral	€1.51B	13.89	14.39%	4.98%	10.40%	62.70%
TLGO	48 Neutral	€380.67M	-1.91	-92.71%	―	-16.41%	-952.46%