Gefran SPA (GE) AI Stock Analysis

• Market Cap: €148.04M
• Dividend Yield: 4.1%
• Average Volume (3M): 32.00K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.37
• Revenue Growth: 3.69%
• EPS Growth: -19.49%
• Country: IT
• Employees: 699
• Sector: General
• Sector Strength: N/A
• 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: -1.33
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 10.90
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.79
• Revenue Forecast (FY): €145.00M

• Rating: 66 Neutral
• Price Target: €11.00 ▲(2.80% Upside)
• Action: Reiterated Date: 03/22/26
• Date: Action: Reiterated 03/22/26

The score is driven primarily by solid financial stability (strong gross margins and low, improving leverage), but is held back by weakening 2025 profitability and cash-flow conversion. Technicals are also a headwind with the stock trading below major moving averages and negative MACD, while valuation is mixed—supported by a ~4.17% dividend yield but tempered by a ~20 P/E.

Positive Factors

High gross margins

Sustained gross margins above 70% indicate structural pricing power in sensors and control hardware, reflecting differentiated product mix and engineering content. High gross margins provide durable buffer against input-cost swings and support reinvestment in R&D and customer solutions over the medium term.

Conservative balance sheet

Material deleveraging to a low D/E (~0.20) and positive ROE imply strong financial flexibility and lower default risk. This conservatism supports steady capex, acquisitions, dividend payments or downturn resilience, making the capital structure supportive of medium-term strategic choices.

Consistent positive cash generation

Repeated positive operating and free cash flow demonstrate the business converts sales into cash across cycles, supporting dividends, service offerings and selective reinvestment. Even with a 2025 dip, persistent cash generation underpins long-term funding of product development and aftermarket services.

Negative Factors

Weaker cash conversion in 2025

A sharp ~26% FCF decline and lower conversion (~60% of net income) suggest rising working-capital needs or higher cash outlays. Reduced cash quality constrains the firm’s ability to sustainably fund capex, dividends or M&A without tapping reserves or increasing leverage, weakening financial optionality.

Softening profitability

Falling operating and net margins indicate margin pressure from cost increases or adverse product mix. Persistent margin erosion would reduce reinvestment capacity and returns on capital, requiring either pricing power improvements or efficiency gains to restore prior profitability levels.

Stagnant revenue trend

Multi-year flat top-line growth with only a 1.3% uptick in 2025 signals limited secular expansion or difficulty winning new design‑ins. Without stronger revenue momentum, the company may struggle to leverage fixed costs, constrain scale economies and limit long-term margin and earnings growth potential.

Gefran SPA Business Overview & Revenue Model

Company Description

Gefran S.p.A., together with its subsidiaries, designs and produces automation components and industrial process control systems Italy, Europe, North America, South America, Asia, and internationally. It operates through three segments: Sensors, Components, and Motion Control. The company offers magnetostrictive, potentiometer, rotary, inclinometer, and linear by wire position sensors; industrial and melt-high temperature pressure sensors; strain and force sensors; and thermocouple and resistance thermometer temperature sensors. It also provides controllers and programmers, and indicators and alarm units; power controllers, solid state relays with/without heatsinks, and fieldbuses; automation platforms; inverters for industrial applications and elevators, DC drives, Regen and AC/DC power suppliers, and special configurations; and servodrives and motors. Its products are used in plastic, mobile hydraulic, heat treatment, lift, metal, hoist and crane, water, food, heating process, wood, bench test, glass, marine, and painting, as well as heating, ventilation, and air conditioning applications. The company is headquartered in Provaglio d'Iseo, Italy. Gefran S.p.A. is a subsidiary of Fingegran Srl.

How the Company Makes Money

Gefran makes money mainly by selling industrial automation and sensing hardware, plus associated engineered solutions and services, to machine builders and industrial end users. Key revenue streams typically include: (1) Product sales of sensors: revenue from supplying measurement devices (position, pressure, temperature and related sensing technologies) that are integrated into machinery and industrial plants for monitoring and control; (2) Product sales of automation & control components: revenue from drives, inverters, controllers/PLCs, power controllers/solid-state relays and related control electronics used to regulate motors, heating processes, and industrial equipment; (3) Application/solution and system-level offerings: revenue from configuring and delivering integrated control solutions (hardware bundles and application-specific engineering) tailored to customer machinery or processes; (4) After-sales and services: revenue from spare parts, maintenance/repair, technical support, and possible calibration or commissioning activities tied to installed equipment (where offered). Earnings are influenced by demand in capital goods and industrial end-markets, the company’s ability to win design-ins with OEM machine manufacturers (leading to recurring component demand over a machine platform’s life), and its distribution/sales network serving domestic and international customers. Specific details on significant partnerships or the exact revenue split by product line are null.

Gefran SPA Financial Statement Overview

Summary

Solid overall fundamentals with very strong gross margins and conservative, improving leverage. Offsetting this, 2025 showed softer profitability (lower net margin and net income) and weaker cash-flow momentum, including a sharp decline in free cash flow and weaker cash conversion.

Income Statement

Revenue has been essentially flat from 2022–2024, with a modest re-acceleration in 2025 (+1.3%). Profitability is solid, supported by very high gross margins (~71–72% in 2024–2025), but operating and net margins have softened versus 2023 (net margin down to ~7.1% in 2025 from ~8.4% in 2024). Net income also declined in 2025, indicating some cost pressure or mix headwinds despite stable sales.

Balance Sheet

Leverage is conservative and improving: debt-to-equity declined from ~0.58 (2020) to ~0.20 (2025), with equity gradually building. Returns on equity remain healthy (~9.8% in 2025), though below the stronger levels seen in 2021–2023, suggesting slightly less efficient profit generation recently. Overall balance sheet risk looks well-contained given the low debt load.

Cash Flow

Cash generation is positive, with operating cash flow and free cash flow remaining meaningfully above zero in each year shown. However, free cash flow fell sharply in 2025 (down ~26%), and cash conversion weakened: operating cash flow and free cash flow were each only ~60% of net income in 2025 (down from stronger conversion in 2024). This points to higher working-capital needs or higher cash spend, making near-term cash flow quality less consistent.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	137.14M	138.96M	132.61M	132.78M	132.52M	116.22M
Gross Profit	114.45M	99.47M	95.43M	71.86M	70.58M	62.32M
EBITDA	22.37M	22.44M	23.06M	24.14M	24.99M	22.83M
Net Income	9.82M	9.87M	11.14M	11.65M	9.99M	13.69M
Balance Sheet
Total Assets	162.22M	159.32M	162.69M	165.18M	154.26M	178.68M
Cash, Cash Equivalents and Short-Term Investments	52.90M	53.14M	59.63M	57.61M	44.11M	35.50M
Total Debt	21.33M	20.23M	25.30M	34.79M	20.41M	34.30M
Total Liabilities	62.07M	58.49M	59.20M	71.24M	63.54M	93.14M
Stockholders Equity	99.64M	100.83M	99.34M	93.94M	90.72M	85.54M
Cash Flow
Free Cash Flow	18.83M	13.88M	20.29M	9.54M	13.59M	19.94M
Operating Cash Flow	26.25M	23.27M	26.66M	20.10M	19.90M	27.38M
Investing Cash Flow	-12.13M	-14.12M	-6.33M	-8.11M	15.74M	-8.81M
Financing Cash Flow	-15.84M	-14.60M	-17.90M	636.00K	-25.88M	-25.14M

Gefran SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 10.7 is above the 20-day moving average (MA) of 10.68, above the 50-day MA of 10.56, and below the 200-day MA of 10.95, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 28.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€133.45M	31.56	4.71%	2.74%	5.40%	26.95%
GE	66 Neutral	€148.04M	20.13	9.97%	4.10%	3.69%	-19.49%
CRL	63 Neutral	€2.26B	37.77	15.31%	0.67%	3.99%	27.12%
BSS	56 Neutral	€141.12M	-9.70	-2.86%	0.57%	-10.59%	-132.80%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Gefran SPA Corporate Events

Gefran Delivers Revenue Growth and Solid Cash Position as Investments Rise in 2025

Gefran reported 2025 revenues of €139 million, up 4.8% year on year, driven mainly by the sensors business and expansion in Asian markets, with additional support from the acquisition of CZ Elettronica. Despite higher personnel and operating costs linked to wage increases and strategic hiring, the group maintained solid profitability, posting EBITDA of €22.4 million, EBIT of €14.3 million and net profit of €9.9 million, while proposing an unchanged dividend of €0.43 per share.

The company ended 2025 with a positive net financial position of €32.8 million and reduced working capital, reflecting strong operating cash generation even as investments rose to €9.4 million to support production, R&D and plant upgrades. Management highlighted resilient demand, especially in sensors, and a 5% increase in orders, while signaling that 2026 has started with stabilizing demand and that first-quarter results should remain positive but below the strong levels recorded a year earlier.

The most recent analyst rating on (IT:GE) stock is a Hold with a EUR11.50 price target. To see the full list of analyst forecasts on Gefran SPA stock, see the IT:GE Stock Forecast page.

Gefran Takes Full Control of C.Z. Elettronica to Bolster Industrial Automation Platform

Gefran S.p.A., a specialist in sensors and industrial automation solutions listed on Euronext STAR Milan, runs an international network of sales and production branches spanning Europe, the Americas and Asia, supported by a workforce of about 750 employees. The group focuses on customised, high‑value systems for industries including plastics, food, pharmaceuticals, packaging and die‑casting, leveraging deep process know‑how to maintain a strong position in advanced industrial electronics.

Gefran has exercised an early purchase option to acquire the remaining 40% of C.Z. Elettronica S.r.l. for €580,000 in cash, taking its stake in the industrial electronics company to 100%. By fully consolidating C.Z. Elettronica, Gefran aims to strengthen its industrial and technological positioning, deepen strategic and operational integration within the group, and advance its growth strategy of enhancing its product offering and core competencies.

The transaction, funded from the company’s own resources, underscores Gefran’s disciplined capital deployment and focus on consolidating high‑value technological assets rather than pursuing large‑scale external financing. Full control of C.Z. Elettronica is expected to support the development of more integrated solutions, potentially improving competitiveness and reinforcing Gefran’s standing in key industrial automation segments.

The most recent analyst rating on (IT:GE) stock is a Hold with a EUR11.50 price target. To see the full list of analyst forecasts on Gefran SPA stock, see the IT:GE Stock Forecast page.