Gestamp Automocion (GEST) AI Stock Analysis

• Market Cap: €1.84B
• Dividend Yield: 3.35%
• Average Volume (3M): 318.09K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.61
• Revenue Growth: -4.69%
• EPS Growth: -8.38%
• Country: ES
• Employees: 40,032
• Sector: General
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): 0.08
• Shares Outstanding: 575,514,340
• 10 Day Avg. Volume: 366,310
• 30 Day Avg. Volume: 318,093
• PEG Ratio: -0.63
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 5.37
• 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: €2.90
• Price Target Upside: -6.75% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.4
• Revenue Forecast (FY): €11.67B

• Rating: 63 Neutral
• Price Target: €3.50 ▲(12.54% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven mainly by steady operating performance and consistently positive cash flow, tempered by thin net margins, recent revenue softness, and meaningful leverage. Technicals are modestly positive (price above key moving averages with neutral RSI), and valuation is supportive with a mid-teens-to-low-teens P/E and a moderate dividend yield.

Positive Factors

Resilient operating profitability

Sustained mid-single-digit EBIT and double-digit EBITDA margins reflect durable manufacturing efficiency and program-level pricing power. This operating resilience supports cash generation and competitive position across vehicle cycles, helping absorb volume swings and maintain supplier credibility.

Consistent cash generation and FCF rebound

Steady operating cash flow and a clear FCF rebound indicate reliable internal funding for capex, tooling and potential deleveraging. Persistent cash conversion provides a durable buffer versus cyclical OEM demand and supports reinvestment in high-value manufacturing capabilities.

Global OEM footprint and higher-value product mix

A diversified geographic footprint and capability in hot-stamped, structural parts increases stickiness with OEMs and allows Gestamp to follow platform production globally. Higher-content, specialized parts raise barriers to entry and support longer program lifecycles and sustained content per vehicle.

Negative Factors

Very thin net profit margins

Net margins near 1–2% leave minimal room for error: modest cost inflation, warranty issues, or pricing pressure can erase profits. This weak bottom-line conversion limits retained earnings, constrains ROE improvement, and makes long-term earnings more sensitive to cyclical shocks.

Recent revenue softness and declines

Flat-to-declining top line suggests limited content growth or exposure to weaker OEM volumes; without revenue expansion, fixed-cost absorption suffers and margin improvement is harder. Over a multi-month horizon this pressure can restrict reinvestment and slow returns recovery.

Meaningful balance-sheet leverage

Above-average leverage reduces financial flexibility, increases interest and refinancing risk, and limits the company's ability to pursue incremental capex or M&A. In a downturn higher debt levels amplify earnings volatility and constrain strategic optionality 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

Financials are steady but not strong: operating profitability is resilient (EBIT ~5%, EBITDA ~11–12%) and cash generation is consistently positive with a sharp FCF rebound in 2025, but revenue has been flat to down recently and net margins are very thin (about 1–2%) with net income trending lower. Balance-sheet leverage remains meaningful (debt ~1.5–1.9x equity), limiting flexibility.

Income Statement

Revenue has been broadly flat to down recently (2025 -1.8% after a small decline in 2024), following strong growth in 2022–2023. Profitability is steady at the operating line with EBIT margins holding near ~5% and EBITDA margins around ~11–12%, but bottom-line profitability is thin (about 1–2% net margin) and net income has trended lower from 2023 to 2025. Overall, the business shows resilient operating performance but limited earnings conversion and modest recent top-line momentum.

Balance Sheet

Leverage is meaningful, with debt running around 1.5–1.9x equity in recent years (improved versus 2020–2021 levels). Equity has been relatively stable while returns on equity have moderated to ~6.9% in 2025 from higher levels in 2022–2023, reflecting weaker profitability. The balance sheet looks improved from the pandemic period, but still carries above-average leverage that can constrain flexibility if industry conditions soften.

Cash Flow

Operating cash flow is consistently strong (roughly €0.8–1.2B annually) and improved again in 2025, supporting positive free cash flow each year shown. Free cash flow rebounded sharply in 2025 versus 2024, indicating better cash generation year-over-year, though free cash flow has been somewhat volatile across the period. Cash conversion versus accounting earnings appears solid overall given recurring positive free cash flow, but variability suggests sensitivity to working capital and investment cycles.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.35B	12.00B	12.27B	10.73B	8.09B
Gross Profit	1.70B	4.60B	4.50B	3.95B	3.36B
EBITDA	1.31B	1.30B	1.32B	1.20B	1.01B
Net Income	152.21M	188.49M	280.67M	259.97M	215.46M
Balance Sheet
Total Assets	10.04B	10.49B	9.93B	10.04B	8.64B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.38B	1.32B	1.72B	1.49B
Total Debt	3.49B	3.48B	3.38B	3.94B	3.81B
Total Liabilities	6.92B	7.48B	7.07B	7.28B	6.42B
Stockholders Equity	2.21B	2.28B	2.20B	2.13B	1.75B
Cash Flow
Free Cash Flow	322.14M	116.04M	211.30M	261.70M	213.95M
Operating Cash Flow	1.20B	1.07B	1.16B	1.04B	827.39M
Investing Cash Flow	-716.92M	-1.02B	-924.19M	-806.61M	-631.72M
Financing Cash Flow	-478.02M	-70.82M	-726.93M	-39.16M	-1.07B

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 below the 20-day moving average (MA) of 3.18, above the 50-day MA of 3.09, and below the 200-day MA of 3.12, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 60.81 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	€3.81B	11.29	23.31%	3.23%	-2.79%	0.61%
TUB	65 Neutral	€392.36M	12.85	11.13%	6.29%	-10.37%	38.82%
GEST	63 Neutral	€1.84B	11.95	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	€1.55B	14.21	14.39%	4.98%	10.40%	62.70%
TLGO	48 Neutral	€381.32M	-3.60	-92.71%	―	-16.41%	-952.46%