Gestamp Automocion (GEST) AI Stock Analysis

• Market Cap: €1.81B
• Dividend Yield: 3.35%
• Average Volume (3M): 318.09K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.66
• 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

Gross profit margin

A sustained gross margin of 33.8% indicates structural cost competitiveness in metal forming and component manufacturing. That margin buffer supports investment in tooling, R&D and product quality, helping preserve competitiveness across vehicle programs and multi-quarter cycles.

Long-term OEM contracts

Long-term contracts with major OEMs create recurring, predictable revenue streams and program continuity. This business model reduces short-term volatility, enables forward planning for capacity and capex, and supports durable cash flows and customer lock-in over multiple vehicle cycles.

Global market position and customer diversity

Scale and diversified OEM relationships across regions reduce exposure to any single customer or market. Global footprint and engineering capabilities help win multi-market programs, exploit scale economies, and sustain revenue even if regional demand softens over several quarters.

Negative Factors

High leverage

A debt/equity ratio of 1.63 signals material leverage that constrains financial flexibility. Higher interest and refinancing risk can limit investment, increase vulnerability to cyclical auto demand shocks, and make deleveraging or opportunistic M&A harder over the next several quarters.

Weak cash generation

Declining free cash flow and a low cash conversion ratio imply limited internally generated funds to support capex, pay down debt, or sustain dividends. Persistent weak cash generation increases reliance on external financing and raises execution risk for strategic investments.

Revenue decline and thin net margins

A trend of shrinking revenue and very low net margin points to pricing pressure, mix shifts, or cost items eroding profitability. Limited bottom-line conversion reduces capacity to absorb rising costs and undermines sustained reinvestment or margin expansion over multiple quarters.

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 shows operational efficiency with stable EBIT and EBITDA margins. However, it faces challenges with declining revenue and profitability, and high leverage poses a financial risk. Recent improvements in cash flow generation are positive, but the company needs to address revenue growth and leverage for enhanced financial stability.

Income Statement

Gestamp Automocion's income statement shows moderate performance with a declining revenue trend in the TTM period, indicating potential market challenges. The gross profit margin has decreased from previous years, reflecting cost pressures. Net profit margin remains low, suggesting limited profitability. However, the company maintains stable EBIT and EBITDA margins, indicating operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risk. Return on equity has decreased, reflecting reduced profitability for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the high debt level remains a concern.

Cash Flow

Cash flow analysis shows strong free cash flow growth in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, suggesting efficient cash management. However, the free cash flow to net income ratio indicates room for improvement in converting profits into cash.

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: Negative
• 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 3.01, above the 50-day MA of 2.95, and above the 200-day MA of 3.02, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 66.79 is Neutral, neither overbought nor oversold. The STOCH value of 67.92 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	€3.60B	11.00	23.31%	3.23%	-2.79%	0.61%
TUB	65 Neutral	€405.79M	13.29	11.13%	6.29%	-10.37%	38.82%
GEST	58 Neutral	€1.81B	10.77	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	€1.39B	12.76	14.39%	4.98%	10.40%	62.70%
TLGO	48 Neutral	€397.61M	-2.02	-92.71%	―	-16.41%	-952.46%