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Getinge AB (GNGBY)
OTHER OTC:GNGBY
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Getinge AB
(OTC:GNGBY)
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Rating:59Neutral
Price Target:
$23.00
▲(0.13% Upside)
Action:ReiteratedDate:01/30/26
The score is driven primarily by stable-but-moderating financial performance (solid balance sheet, but weaker growth/margins and volatile/downshifting free cash flow). Technical indicators are notably weak and weigh on the result. Valuation is average (P/E ~26 with a modest yield). Earnings call signals are constructive on guidance and underlying margin trajectory, but ongoing tariff/FX pressure and execution risks (delays and quality costs) keep the overall score in the high-50s.
Positive Factors
Strong balance sheet & low leverage
Manageable net leverage and a cash buffer provide durable financial flexibility to fund product launches, service growth and working capital needs. This lowers refinancing risk, supports the proposed dividend and gives management room to execute productivity actions toward the 16–19% EBITA target.
Higher recurring revenue mix
A two‑thirds recurring revenue share increases revenue predictability, supports steadier margins and improves cash flow visibility. Structurally, a larger service/consumables base reduces cyclicality from project sales and helps sustain operating leverage as new products scale.
Regulatory progress & product launches
Regulatory clearances and new product rollouts expand addressable markets and recurring consumable attachment rates. CE/510(k) progress is a structural enabler of durable revenue growth and margin improvement as clinical adoption and aftermarket sales accumulate over multiple years.
Negative Factors
Persistent tariff & FX headwinds
Ongoing tariff and currency burdens materially compress reported margins and introduce recurring volatility to profitability. This structural external exposure forces sustained price increases or productivity gains and limits the pace of margin recovery even if core operations improve.
Volatile, downshifted free cash flow
A meaningful downshift and volatility in FCF weakens the company's ability to fund capex, pay down debt or absorb shocks without dilutive or costly actions. Lower cash-to-debt coverage increases sensitivity to macro or operational setbacks and slows structural deleveraging.
Elevated quality costs and execution delays
Sustained high remediation and quality costs, plus prior supply delays, create ongoing execution risk that erodes margins and postpones revenue recognition. These structural operational shortcomings can depress returns and delay the timeline for reaching mid‑term EBITA targets.
Getinge AB (GNGBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.76B
Dividend Yield2.05%
Average Volume (3M)149.00
Price to Earnings (P/E)26.3
Beta (1Y)0.58
Revenue Growth10.70%
EPS Growth27.42%
CountryUS
Employees11,827
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.34
Shares Outstanding254,152,370
10 Day Avg. Volume133
30 Day Avg. Volume149
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)2.02
Price to Sales (P/S)1.70
P/FCF Ratio23.97
Enterprise Value/Market Cap10.52
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit3.80
Enterprise Value/Ebitda9.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Getinge AB Business Overview & Revenue Model
Company DescriptionGetinge AB is a global medical technology company based in Sweden, specializing in advanced solutions for healthcare professionals in the hospital and life sciences sectors. The company operates primarily in three areas: Surgical Workflows, Critical Care, and Life Science. Getinge's core products include surgical instruments, sterilization systems, intensive care unit equipment, and biopharmaceutical manufacturing solutions, aimed at improving patient outcomes and enhancing operational efficiency in healthcare facilities.
How the Company Makes MoneyGetinge AB generates revenue through the sale of medical devices, equipment, and services across its primary operational segments. The company has a diversified revenue model that includes direct sales of products, recurring revenues from service contracts, and maintenance agreements. Key revenue streams include the sale of surgical products and systems, critical care equipment, and solutions for life sciences. Additionally, Getinge forms strategic partnerships with hospitals and healthcare providers, which can enhance their market reach and improve sales. The company also benefits from a strong focus on innovation and R&D, allowing them to introduce new products that meet evolving healthcare needs, thus driving further revenue growth.
Getinge AB Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: underlying operational performance, recurring revenue mix, product launches, regulatory progress and a strong balance sheet are clear positives. However, significant external headwinds — notably tariffs and currency moves — materially suppressed reported margins and profitability in 2025 and are expected to persist into 2026. Additionally, softness in parts of Life Science, supply delays for CardioSave and elevated quality‑related costs temper near‑term visibility. Management is confident in mitigation actions and progression toward the mid‑term margin target, but the combination of solid fundamentals and notable external pressures results in a balanced outlook.Q4-2025 Updates
Positive Updates
Record quarter with organic revenue growth
Q4 organic net sales grew by 1.2% versus prior year, beating last year's record quarter; order intake increased organically by 2.3%.
Strong underlying margins absent currency/tariff impact
Adjusted EBITA margin excluding currency and tariff effects would have been 20.3% in Q4 and 16.0% for the full year, demonstrating underlying margin improvement toward the 16–19% 2028 target.
Solid profitability and cash generation
Adjusted gross profit in the quarter was SEK 5.037 billion; adjusted EBITDA was SEK 1.809 billion (17.8% margin); free cash flow was SEK 1.2 billion in Q4.
Strong balance sheet and capital allocation actions
Net debt was SEK 9.8 billion (SEK 7.5 billion adjusted for pensions), leverage 1.5x adjusted EBITDA (1.1x adjusted), cash ≈ SEK 3.4 billion; Board proposed dividend SEK 4.75 per share.
Recurring and high‑margin revenue mix improving
Recurring revenue now represents about two‑thirds of sales and the share of high‑margin products (Paragonix, ECLS portfolio, infection‑control consumables, Cell Transfer data bags) has increased.
Product launches and regulatory progress
Several launches in Q4 (Siemens UI in washers/sterilizers, Aquadis 44, Automatiq). Regulatory milestones: CE for PLS set (EUR MDR), iCast covered stent PMA for large diameters, PiCCO included in European guideline; Cardiohelp II CE submission completed and first European shipments expected early in the year.
Commercial momentum in key end markets
Good performance in Acute Care Therapies (ventilators, Transplant Care, ECLS consumables) and Surgical Workflows (operating tables, infection control consumables), and continued strength in sterile transfer within Life Science.
Negative Updates
Significant FX and tariff headwinds
Tariffs and currency were a material drag — more than SEK 1 billion negative impact on adjusted EBITDA for 2025, with tariffs ≈ SEK 370 million for the full year and ≈ SEK 150 million in Q4; combined tariff/currency headwind in Q4 was nearly SEK 500 million.
Reported margins pressured in quarter
Adjusted gross margin declined by 1.1 percentage points in Q4; FX reduced EBITA margin by c.1.2 percentage points in the quarter; adjusted EBITDA margin was 17.8% (down vs. prior quarter/period due mainly to FX/tariffs).
Weakness in parts of Life Science
Life Science order intake and organic net sales declined in Q4 due to softer performance in WIS (washers, isolators, sterilizers) and Bio‑Processing; bioprocessing exposure to slower markets (including China) weighed on results.
Delays and supply constraints for key products
CardioSave shipments were delayed (CE reinstated with conditions; deliveries pushed into Q2 2026) and the 510(k) submission was moved to Q2 2026 due to critical component delays; IABP supply restrictions limited U.S. sales to replacement pumps.
Surgical Perfusion phase‑out reduces 2026 sales in category
Surgical Perfusion net sales are expected to decline from about SEK 250 million to SEK 50 million in 2026, creating a headwind that is adjusted for in 2026 guidance.
Quality remediation and extraordinary costs remain above prior levels
Quality uplift and related extraordinary costs remain elevated in 2025 (confirmed to be below SEK 800 million but still high); company expects these costs to decline from H2 2026 and materially in 2027–2028.
Ongoing geopolitical and macro uncertainty
Management expects tariff and FX uncertainty to continue in 2026 (tariff headwind potentially ~SEK 0.5 billion), and cites delayed customer project decisions and competitive dynamics in China as ongoing challenges.
Company Guidance
Getinge guided to organic net sales growth of 3–5% for 2026 (adjusted for the phaseout of Surgical Perfusion, which is expected to fall from ~SEK 250m to ~SEK 50m), while reiterating its mid‑term adjusted EBITA target of 16–19% by end‑2028; management said tariffs and FX will remain a headwind (tariffs cost ~SEK 370m in 2025 and ~SEK 150m in Q4, with at least ~SEK 0.5bn expected in 2026, and FX hit Q4 by ~1.2 percentage points), but underlying performance is strong—Q4 adjusted gross profit was SEK 5.037bn, adjusted EBITDA SEK 1.809bn (17.8% margin), free cash flow SEK 1.2bn, net debt SEK 9.8bn (SEK 7.5bn excl. pensions) with leverage 1.5x (1.1x excl. pensions) and cash ~SEK 3.4bn—and management expects to mitigate headwinds via ~2% price increases, productivity actions and regulatory/product launches (CardioSave 510(k) now expected in Q2 2026; Cardiohelp II CE submission made Q4 2025 with EU shipments early‑2026 and US 510(k) H2 2026), while extraordinary quality costs should decline from H2 2026 and be much lower in 2027–28; the Board proposed a dividend of SEK 4.75 per share.Getinge AB Financial Statement Overview
Summary
Overall fundamentals are stable but mixed: profitability has softened with flat-to-down revenue and multi-year margin compression (income statement 64), leverage remains manageable with no stress signals (balance sheet 74), and free cash flow is consistently positive but volatile and down sharply in 2025 with weaker cash-to-debt coverage (cash flow 57).Income Statement
Profitability remains solid but has clearly softened versus earlier years. Revenue was essentially flat in 2024 and declined in 2025, while margins show a multi-year compression from 2020–2022 highs (net margin down to ~6.5% in 2025). A positive is the 2025 rebound in earnings versus 2024 and stable gross margin around the mid‑40% range, but the top-line slowdown and lower operating leverage keep the score in the mid range.64
Positive
Balance Sheet
Leverage looks manageable for the business, with debt-to-equity staying moderate (~0.27–0.37 recently) and no sign of balance-sheet stress in the provided data. Returns on equity are positive but not exceptional and have generally trended lower versus 2020–2022 levels, suggesting reduced efficiency/profitability on the capital base. Overall, the balance sheet appears sound, with the main watch item being the slight upward drift in leverage since 2022.74
Positive
Cash Flow
Cash generation is positive, with free cash flow consistently positive and generally covering a meaningful portion of earnings (about ~54%–86% historically; ~67% in 2025). However, free cash flow has been volatile and declined sharply in 2025 (down ~20%), and operating cash flow relative to debt is low in the most recent periods, implying a slower paydown capacity if conditions weaken. Strength in ongoing cash generation is offset by the recent downshift and variability.57
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 34.97B | 34.76B | 31.83B | 28.29B | 27.05B |
| Gross Profit | 16.65B | 16.15B | 14.49B | 13.41B | 13.58B |
| EBITDA | 6.44B | 5.31B | 5.91B | 5.70B | 6.15B |
| Net Income | 2.26B | 1.64B | 2.41B | 2.49B | 2.97B |
Balance Sheet | |||||
| Total Assets | 56.51B | 63.92B | 53.59B | 52.03B | 44.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.40B | 2.96B | 2.73B | 5.68B | 4.08B |
| Total Debt | 10.88B | 10.73B | 8.08B | 5.82B | 4.31B |
| Total Liabilities | 27.01B | 30.71B | 23.18B | 21.58B | 19.38B |
| Stockholders Equity | 29.43B | 33.01B | 30.17B | 30.04B | 24.75B |
Cash Flow | |||||
| Free Cash Flow | 2.48B | 3.27B | 1.60B | 2.23B | 5.63B |
| Operating Cash Flow | 3.71B | 4.58B | 2.96B | 3.37B | 6.56B |
| Investing Cash Flow | -2.78B | -4.55B | -6.54B | -1.47B | -1.33B |
| Financing Cash Flow | -719.09M | 504.00M | 511.00M | -500.00M | -7.24B |
Getinge AB Technical Analysis
Negative
22.97
Price Trends
22.84
Negative
22.83
Negative
21.81
Negative
Market Momentum
-0.42
Positive
38.03
Neutral
14.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNGBY, the sentiment is Negative. The current price of 22.97 is above the 20-day moving average (MA) of 22.05, above the 50-day MA of 22.84, and above the 200-day MA of 21.81, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 38.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNGBY.
Getinge AB Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $14.27B | 22.70 | 9.20% | 2.28% | 5.78% | 61.52% | |
69 Neutral | $22.33B | 32.31 | 10.21% | 0.94% | 5.15% | 60.30% | |
68 Neutral | $16.92B | 80.92 | 17.36% | ― | 27.12% | -41.72% | |
65 Neutral | $18.25B | 25.25 | 5.60% | 1.05% | 5.47% | -23.03% | |
64 Neutral | $27.43B | 24.78 | 8.21% | 3.30% | -0.76% | -55.03% | |
59 Neutral | $5.76B | 26.30 | 4.80% | 2.05% | 10.70% | 27.42% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GNGBY
Getinge AB
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1.97%
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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.