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Getinge AB (GNGBY)
OTHER OTC:GNGBY
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Getinge AB (GNGBY) AI Stock Analysis

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Getinge AB

(OTC:GNGBY)

Rating:74Outperform
Price Target:
$23.00
▲(16.40%Upside)
Getinge AB's strong financial performance, highlighted by solid profitability and a robust balance sheet, is the primary driver of the stock score. The positive momentum in technical analysis further supports the score, although the high P/E ratio indicates potential overvaluation concerns. The earnings call provides a positive outlook but notes challenges such as currency headwinds and geopolitical uncertainties.

Getinge AB (GNGBY) vs. SPDR S&P 500 ETF (SPY)

Getinge AB Business Overview & Revenue Model

Company DescriptionGetinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers sterile transfer systems, closure processing systems, washers, isolators, sterilizers, logistic automation solutions, bioreactors, bioprocess control systems, bioprocess software, biobundles, bioprocess analytics, and perfusion systems; practice-oriented monitoring systems and disposables, anesthesia machines, beating heart stabilizers and positioners, axius blower mister and coronary shunts, proximal seal systems, ceiling supply units, connected solutions, cleaning and disinfection products, packaging and sealing solutions, monitors and indicators, and SteriTec products. The company also provides thoracic catheters, dry seal chest drain, mobile dry seal drain, dry and wet suction water seal chest drain, and chest drain valves; transitional accessories; endoscope reprocessing; endoscopic vessel harvesting systems; endovascular products; extracorporeal life support or extracorporeal membrane oxygenation products; inspection and packing products; intra-aortic balloon counter pulsation therapies; mechanical ventilation products; medical furniture; modular room systems; operating lights and tables; OR integration and management; patient flow management; patient transport; sterile supply management; sterilization; surgical assist systems; surgical perfusion; transport & storage; trays & baskets; and vascular and cardiothoracic surgery solutions. It offers its products through a network of proprietary sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.
How the Company Makes MoneyGetinge AB generates revenue through the sale of its medical technology products and related services across various healthcare and life science sectors. The company's key revenue streams include the sales of equipment for operating rooms and intensive care units, such as ventilators, anesthesia systems, and surgical tables. Additionally, Getinge offers infection control solutions, including sterilization equipment and washer-disinfectors, which are integral to hospital operations. The company also provides service contracts, spare parts, and consumables associated with its products, which contribute to a recurring revenue model. Significant partnerships with healthcare institutions and research organizations globally further bolster its market presence and revenue generation.

Getinge AB Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: 1.86%|
Next Earnings Date:Oct 21, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong organic growth and margin improvements, successful product launches, and a solid financial position. However, significant challenges from tariffs, currency fluctuations, and geopolitical uncertainties are noted. Despite these headwinds, the company remains optimistic about its growth outlook.
Q2-2025 Updates
Positive Updates
Organic Sales and Order Growth
Net sales grew by 4.1% organically with positive development in all business areas and regions. Order intake increased by 4.4% organically.
Margin Improvement
Adjusted gross and EBITA margins improved due to acquisitions, healthy price increases, and positive mix, with EBITA margin rising to 12%.
Successful Product Launches
Paragonix celebrated its 100th kidney transplant case with KidneyVault. Several new products were introduced, including the XEN disinfection chemistry portfolio in the U.S.
Solid Financial Position
Financial leverage remains below 2.5x EBITDA despite increased net debt. Free cash flow amounted to SEK 0.5 billion.
Negative Updates
Tariffs and Currency Impact
Tariffs and currency fluctuations had a significant negative impact on EBITA margin, with tariffs costing approximately minus SEK 110 million in the quarter.
Challenges in Life Science Segment
Softer performance in Life Science based on high comps from the previous year.
Impact of Geopolitical Uncertainty
Uncertainty in trade regulations between EU and China with potential future impacts on tariffs and production costs.
Company Guidance
In the recent conference call, the company provided guidance for 2025, emphasizing their strategic goals and financial expectations. They reiterated their target of achieving at least 12% adjusted EPS growth on average from 2024 to 2028. The strategy involves enhancing sales from recurring revenue, focusing on higher-margin products, and maintaining quality processes. The company reported a positive trend with 65% of sales now coming from recurring revenue and high-margin products constituting approximately two-thirds of sales. The second quarter saw a 4.1% organic net sales growth and a 4.4% increase in order intake, with improvements in adjusted gross and EBITA margins driven by acquisitions and pricing strategies, despite challenges from tariffs and currency fluctuations. The financial outlook for 2025 anticipates an organic net sales growth between 2% to 5%, supported by ongoing productivity improvements and strategic investments.

Getinge AB Financial Statement Overview

Summary
Getinge AB demonstrates a stable financial position with strong profitability and a robust balance sheet. However, challenges in revenue growth and free cash flow decline slightly impact its overall financial health. Despite these challenges, the company maintains strong operational efficiency and low leverage, supporting its resilience in the medical devices industry.
Income Statement
75
Positive
Getinge AB has demonstrated solid performance in its income statement metrics. The gross profit margin for TTM (Trailing-Twelve-Months) stands at 46% and the net profit margin at 4.16%, indicating healthy profitability levels. However, the revenue growth rate for TTM is 2.32%, which shows moderate growth compared to previous periods. The EBIT margin is 7.79%, and the EBITDA margin is 17.28%, reflecting stable operational efficiency. Overall, the company maintains strong margins but exhibits limited revenue growth, which slightly dampens the score.
Balance Sheet
80
Positive
Getinge AB's balance sheet is robust with a debt-to-equity ratio of 0.38, indicating a conservative approach to leverage. The return on equity (ROE) for TTM is 4.84%, which is moderate, considering industry standards. The equity ratio is 50.68%, which demonstrates a strong equity base supporting its assets. The company maintains a solid financial structure with low leverage and a strong equity position, contributing to a high score in this vertical.
Cash Flow
70
Positive
The cash flow analysis for Getinge AB reveals mixed results. The free cash flow for TTM has decreased, leading to a negative growth rate of -24.02% compared to the previous year. However, the operating cash flow to net income ratio is 2.57, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.68, showing efficient conversion of profit to cash. While operational cash generation remains strong, the decline in free cash flow growth impacts the overall score.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue34.76B31.83B28.29B27.05B29.82B
Gross Profit16.15B14.49B13.41B13.58B14.72B
EBITDA5.31B5.91B5.70B6.15B7.20B
Net Income1.64B2.41B2.49B2.97B3.24B
Balance Sheet
Total Assets63.92B53.59B52.03B44.55B45.01B
Cash, Cash Equivalents and Short-Term Investments2.96B2.73B5.68B4.08B6.06B
Total Debt10.73B8.08B5.82B4.31B10.21B
Total Liabilities30.71B23.18B21.58B19.38B23.53B
Stockholders Equity33.01B30.17B30.04B24.75B21.02B
Cash Flow
Free Cash Flow3.27B1.60B2.23B5.63B6.15B
Operating Cash Flow4.58B2.96B3.37B6.56B7.20B
Investing Cash Flow-4.55B-6.54B-1.47B-1.33B-1.99B
Financing Cash Flow504.00M511.00M-500.00M-7.24B-297.00M

Getinge AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.76
Price Trends
50DMA
19.65
Positive
100DMA
19.95
Positive
200DMA
18.79
Positive
Market Momentum
MACD
0.07
Negative
RSI
62.71
Neutral
STOCH
41.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNGBY, the sentiment is Positive. The current price of 19.76 is above the 20-day moving average (MA) of 19.76, above the 50-day MA of 19.65, and above the 200-day MA of 18.79, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.71 is Neutral, neither overbought nor oversold. The STOCH value of 41.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNGBY.

Getinge AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$32.89B63.0823.72%9.11%-17.87%
ZBZBH
74
Outperform
$18.44B20.657.31%1.04%3.30%-2.39%
74
Outperform
$5.65B39.274.80%2.30%9.03%-40.47%
EWEW
71
Outperform
$44.87B51.1516.73%-9.84%-35.77%
STSTE
71
Outperform
$22.19B35.559.46%1.02%0.32%64.36%
60
Neutral
HK$17.01B5.40-7.44%3.26%11.55%-28.15%
PHPHG
51
Neutral
$23.70B-7.10%3.61%-0.76%-55.03%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GNGBY
Getinge AB
19.76
1.11
5.95%
DXCM
Dexcom
84.03
-28.10
-25.06%
EW
Edwards Lifesciences
76.56
-10.49
-12.05%
PHG
Koninklijke Philips
24.54
-0.61
-2.43%
STE
Steris
222.65
-6.76
-2.95%
ZBH
Zimmer Biomet Holdings
92.59
-16.40
-15.05%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025