Gefran SPA (GE) AI Stock Analysis

• Market Cap: €150.91M
• Dividend Yield: 4.08%
• Average Volume (3M): 8.66K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.46
• Revenue Growth: 4.98%
• EPS Growth: -6.71%
• Country: IT
• Employees: 699
• Sector: Industrials
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.18
• Shares Outstanding: 14,400,000
• 10 Day Avg. Volume: 9,244
• 30 Day Avg. Volume: 8,661
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €11.75
• Price Target Upside: 11.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: €11.50 ▲(9.52% Upside)

Gefran SPA's solid financial performance is the most significant factor, with strong revenue growth and efficient cost management. The company's valuation is appealing, supported by a reasonable P/E ratio and a healthy dividend yield. However, technical indicators suggest caution, as short-term trends appear bearish.

Positive Factors

Geographic Trends

Positive trends in the US and Asia should outweigh prolonged softness for European customers.

Growth Performance

The management remains confident over a continuation of the growth performance despite the challenging macro context, anticipating an inversion in intake momentum.

Valuation

Gefran's shares trade at a double-digit discount to Italian Small Caps, which does not reflect the company's long-term growth potential.

Negative Factors

Cost Pressures

EBITDA margin is experiencing pressure due to higher personnel costs.

Estimates

Estimates have been trimmed to reflect a temporary profitability dilution.

Profitability

While the profitability performance has been somewhat disappointing, this should improve along with volumes recovery.

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 demonstrates a strong financial position with consistent revenue growth, efficient cost management, and solid profitability. The balance sheet is healthy, characterized by low leverage and strong equity backing. Cash flow generation is good, though a slight decline in free cash flow growth should be monitored.

Income Statement

Gefran SPA has demonstrated strong financial performance with consistent revenue growth over the years. The TTM gross profit margin stands at 76.4%, indicating efficient cost management. The net profit margin improved slightly to 8.4%, reflecting healthy profitability. The TTM EBIT margin at 11.8% and EBITDA margin at 17.3% are robust, showcasing strong operational efficiency.

Balance Sheet

The balance sheet is solid, with a debt-to-equity ratio of 0.23, indicating low leverage and financial stability. The return on equity is 11.1%, which is commendable and reflects effective use of equity to generate profits. The equity ratio at 61.8% suggests a strong capital structure with ample equity backing. Overall, the company maintains a healthy balance sheet with minimal financial risk.

Cash Flow

Cash flow analysis reveals positive trends, with a free cash flow growth rate of -6.5% compared to the previous year, which is slightly concerning. However, the operating cash flow to net income ratio is a strong 2.20, indicating good cash generation relative to net profits. The free cash flow to net income ratio of 1.66 further confirms efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.40M	132.61M	132.78M	132.52M	116.22M	128.37M
Gross Profit	103.47M	95.43M	71.86M	70.58M	62.32M	63.35M
EBITDA	23.40M	23.06M	24.14M	24.99M	22.83M	16.25M
Net Income	11.42M	11.14M	11.65M	9.99M	13.69M	4.35M
Balance Sheet
Total Assets	166.24M	158.53M	165.18M	154.26M	178.68M	162.96M
Cash, Cash Equivalents and Short-Term Investments	53.68M	59.63M	57.61M	44.11M	35.50M	41.94M
Total Debt	24.04M	25.30M	34.79M	20.41M	34.30M	45.45M
Total Liabilities	63.57M	59.20M	71.24M	63.54M	93.14M	84.78M
Stockholders Equity	102.67M	99.34M	93.94M	90.72M	85.54M	78.18M
Cash Flow
Free Cash Flow	18.97M	20.29M	9.54M	13.59M	19.94M	10.95M
Operating Cash Flow	25.17M	26.66M	20.10M	19.90M	27.38M	16.95M
Investing Cash Flow	-10.15M	-6.33M	-8.11M	15.74M	-8.81M	-4.94M
Financing Cash Flow	-17.45M	-17.90M	636.00K	-25.88M	-25.14M	5.47M

Gefran SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 10.5 is above the 20-day moving average (MA) of 10.34, above the 50-day MA of 10.34, and above the 200-day MA of 9.30, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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
CRL	73 Outperform	€2.84B	46.15	14.83%	0.66%	-2.99%	1.31%
GE	72 Outperform	€150.91M	14.07	11.00%	4.08%	4.98%	-6.71%
Sector *	70 Outperform	€4.02B	9.32	12.70%	1.72%	6.92%	2.65%
EM	69 Neutral	€150.13M	13.06	4.04%	2.73%	7.80%	-0.57%
BSS	55 Neutral	€206.62M	52.34	-2.86%	0.54%	-10.59%	-132.80%

Gefran SPA Corporate Events

Gefran S.p.A. Releases Half-Yearly Financial Report for 2025

Gefran S.p.A. has announced the approval of its half-yearly financial report as of June 30, 2025, by the Board of Directors. The report is now accessible at the company’s registered office, on its website, and through an authorized storage system, reflecting Gefran’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on (IT:GE) stock is a Buy with a EUR12.00 price target. To see the full list of analyst forecasts on Gefran SPA stock, see the IT:GE Stock Forecast page.

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

Gefran S.p.A. reported a 5.3% increase in revenues for the first half of 2025, reaching 72.2 million Euros, despite challenges such as unfavorable exchange rates and a slowdown in European orders. The company successfully offset these challenges with growth in other international markets and continued investment in product innovation and workforce expansion. The acquisition of CZ Elettronica S.r.l. and Mecatronica S.r.l. contributed to revenue growth, while the company maintained positive financial metrics, including a net profit of 6.6 million Euros. Gefran’s strategic moves and solid performance position it confidently for the remainder of the year, despite ongoing market uncertainties.

The most recent analyst rating on (IT:GE) stock is a Buy with a EUR12.00 price target. To see the full list of analyst forecasts on Gefran SPA stock, see the IT:GE Stock Forecast page.

Gefran S.p.A. Reports Strong Q1 2025 Financial Results Amid Strategic Growth

Gefran S.p.A. reported strong financial results for the first quarter of 2025, with revenues increasing by 6.7% compared to the previous year, driven by growth in all geographical areas and particularly in Europe. The company’s strategic acquisitions and investments in product innovation have strengthened its position in the industrial automation industry, allowing it to absorb increased costs and maintain a positive financial outlook despite a challenging macroeconomic environment.

The most recent analyst rating on (IT:GE) stock is a Buy with a EUR12.00 price target. To see the full list of analyst forecasts on Gefran SPA stock, see the IT:GE Stock Forecast page.