Gestamp Automocion (GEST) AI Stock Analysis

• Market Cap: €1.71B
• Dividend Yield: 3.35%
• Average Volume (3M): 318.09K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.66
• Revenue Growth: -4.69%
• EPS Growth: -8.38%
• Country: ES
• Employees: 40,032
• Sector: Industrials
• Sector Strength: 72
• 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: -5.72% 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 ▲(1.01% Upside)

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

Business Model Strength

Gestamp's business model based on long-term contracts with OEMs ensures stable cash flows and strengthens its market position.

Gross Profit Margin

A solid gross profit margin reflects operational efficiency and the ability to maintain cost competitiveness in the market.

Strategic Partnerships

Partnerships with major automotive brands and focus on emerging markets enhance revenue potential and market expansion.

Negative Factors

High Leverage

High leverage increases financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

Declining Cash Flow

Declining cash flow limits financial flexibility, affecting the company's ability to fund operations and invest in future growth.

Revenue Decline

A decline in revenue indicates market challenges or operational inefficiencies, which could hinder long-term growth prospects.

Gestamp Automocion Business Overview & Revenue Model

Company Description

Gestamp Automocion (GEST) is a global leader in the design, development, and manufacturing of automotive components and systems. Specializing in metal forming, Gestamp operates primarily in the automotive sector, providing innovative solutions for vehicle manufacturers. The company's core products include body-in-white components, chassis, and other critical structural elements that enhance vehicle safety and performance. With a commitment to sustainability and technological advancement, Gestamp serves a diverse range of customers, including major automotive brands worldwide.

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: Neutral
• Last Price: 2.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:GEST, the sentiment is Neutral. The current price of 2.97 is above the 20-day moving average (MA) of 2.94, below the 50-day MA of 3.04, and below the 200-day MA of 3.03, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 90.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€3.47B	10.60	23.31%	3.23%	-2.79%	0.61%
PSG	69 Neutral	€1.38B	12.71	14.39%	4.98%	10.40%	62.70%
TUB	65 Neutral	€378.34M	12.39	11.13%	6.29%	-10.37%	38.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GEST	58 Neutral	€1.71B	10.18	7.70%	3.35%	-4.69%	-8.38%
TLGO	48 Neutral	€343.76M	-1.90	-92.71%	―	-16.41%	-952.46%