Gefran SPA (GE) AI Stock Analysis

• Market Cap: €173.19M
• Dividend Yield: 3.86%
• Average Volume (3M): 32.00K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.38
• Revenue Growth: 3.69%
• EPS Growth: -19.49%
• Country: IT
• Employees: 699
• Sector: Industrials
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.18
• Shares Outstanding: 14,400,000
• 10 Day Avg. Volume: 35,066
• 30 Day Avg. Volume: 32,002
• PEG Ratio: -2.41
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 6.45
• 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: €13.00
• Price Target Upside: 16.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €12.00 ▲(7.62% Upside)

Gefran SPA's strong financial performance is the most significant factor, showcasing robust revenue growth and solid profitability metrics. However, technical analysis indicates bearish momentum, which could pose short-term risks. The valuation is fair, with a reasonable P/E ratio and an attractive dividend yield. Overall, the stock presents a balanced risk-reward profile, with financial strength offset by technical weaknesses.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand and market expansion, enhancing Gefran's competitive position and long-term business sustainability.

Cash Flow Management

Strong cash flow management ensures liquidity and operational flexibility, supporting the company's ability to fund operations and investments, which is crucial for long-term growth.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial leverage, providing stability and reducing financial risk, which is beneficial for long-term resilience.

Negative Factors

Earnings Volatility

Historical fluctuations in revenue growth can indicate potential instability in market demand, which may affect future earnings consistency and predictability.

Debt Levels

Increasing debt levels, even if slight, can lead to higher interest obligations and may impact financial flexibility, posing a risk to long-term financial health.

Cash Flow Variability

Variability in cash flow generation can affect the company's ability to consistently fund operations and investments, potentially impacting strategic initiatives and growth plans.

Gefran SPA Business Overview & Revenue Model

Company Description

Gefran SPA (GE) is an Italian company specializing in the design, manufacture, and distribution of automation and control solutions for industrial applications. Operating primarily in sectors such as automation, industrial sensors, and power transmission, Gefran offers a diverse range of products including sensors, drives, control systems, and software solutions. The company serves various industries including plastics, metals, food, and energy, focusing on enhancing process efficiency and safety through innovative technology.

How the Company Makes Money

Gefran generates revenue through multiple key streams including the sale of its automation and control products, ongoing service contracts, and software licensing. The company primarily earns from selling high-precision sensors, industrial automation systems, and control units to a diverse clientele across different sectors. Additionally, Gefran benefits from long-term partnerships with major industrial players, which not only provide steady demand for its products but also foster collaborative development of new technologies. The combination of direct sales and service agreements, along with the expansion into emerging markets and continued investment in R&D, contributes significantly to its financial performance.

Gefran SPA Financial Statement Overview

Summary

Gefran SPA displays a strong financial position with impressive revenue growth and profitability metrics. The balance sheet is solid with low leverage, and cash flow management is effective, ensuring liquidity and operational flexibility. While the company shows resilience and growth potential, attention should be paid to historical fluctuations in revenue and cash flow to mitigate potential risks.

Income Statement

Gefran SPA has demonstrated strong revenue growth with a TTM increase of 62.6%, indicating robust demand and market expansion. The gross profit margin is impressive at 76.4%, reflecting efficient cost management. Net profit margin is stable at 8.4%, showing consistent profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency. However, slight fluctuations in revenue growth rates in previous years suggest potential market volatility.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.23, indicating prudent financial leverage. Return on equity is strong at 11.6%, showcasing effective use of shareholder funds. The equity ratio is stable, reflecting a balanced asset structure. However, the slight increase in debt levels over the years warrants monitoring.

Cash Flow

Gefran SPA exhibits strong cash flow management with a significant free cash flow growth rate of 112.3% TTM. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is robust at 75.4%, supporting the company's ability to fund operations and investments. However, historical fluctuations in free cash flow growth suggest potential variability in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.25M	132.61M	132.78M	132.52M	116.22M	128.37M
Gross Profit	108.58M	95.43M	71.86M	70.58M	62.32M	63.35M
EBITDA	22.57M	23.06M	24.14M	24.99M	22.83M	16.25M
Net Income	10.60M	11.14M	11.65M	9.99M	13.69M	4.35M
Balance Sheet
Total Assets	160.85M	162.69M	165.18M	154.26M	178.68M	162.96M
Cash, Cash Equivalents and Short-Term Investments	50.23M	59.63M	57.61M	44.11M	35.50M	41.94M
Total Debt	22.65M	25.30M	34.79M	20.41M	34.30M	45.45M
Total Liabilities	62.95M	59.20M	71.24M	63.54M	93.14M	84.78M
Stockholders Equity	97.41M	99.34M	93.94M	90.72M	85.54M	78.18M
Cash Flow
Free Cash Flow	19.19M	20.29M	9.54M	13.59M	19.94M	10.95M
Operating Cash Flow	25.94M	26.66M	20.10M	19.90M	27.38M	16.95M
Investing Cash Flow	-11.46M	-6.33M	-8.11M	15.74M	-8.81M	-4.94M
Financing Cash Flow	-16.54M	-17.90M	636.00K	-25.88M	-25.14M	5.47M

Gefran SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.15
• 50DMA: Negative
• 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 IT:GE, the sentiment is Positive. The current price of 11.15 is below the 20-day moving average (MA) of 11.29, below the 50-day MA of 12.05, and above the 200-day MA of 10.45, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 78.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:GE.

Gefran SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EM	70 Outperform	€162.72M	14.15	4.70%	2.75%	5.40%	26.95%
GE	69 Neutral	€173.19M	16.15	9.97%	3.86%	3.69%	-19.49%
CRL	66 Neutral	€2.45B	39.86	15.31%	0.68%	3.99%	27.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BSS	56 Neutral	€152.91M	-21.19	-2.86%	0.57%	-10.59%	-132.80%

Gefran SPA Corporate Events

Gefran S.p.A. Reports Revenue Growth Amid Market Challenges

Gefran S.p.A. reported a 4.5% increase in revenues for the first nine months of 2025, reaching 105.1 million Euros, driven by strong performance in the sensor business and growth in Asian markets. Despite challenges such as exchange rate fluctuations and increased operational costs, the company maintained positive margins, with a net profit of 8.8 million Euros. The acquisition of CZ Elettronica S.r.l. contributed to revenue growth, although the automation components segment saw a slight decline on a like-for-like basis. The company’s strategic focus on resilience and effective management has allowed it to navigate uncertainties and continue generating sustainable value.

The most recent analyst rating on (IT:GE) stock is a Buy with a EUR14.50 price target. To see the full list of analyst forecasts on Gefran SPA stock, see the IT:GE Stock Forecast page.