Gefran SPA (GE) AI Stock Analysis

• Market Cap: €150.91M
• Dividend Yield: 4.1%
• Average Volume (3M): 32.00K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.34
• 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: 23.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €11.50 ▲(9.52% Upside)

Gefran SPA's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. However, technical indicators suggest bearish momentum, and challenges in cash flow generation pose risks. The stock's valuation is reasonable, with a fair P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for Gefran's products, suggesting a strong market position and potential for continued expansion.

Gross Profit Margin

A high gross profit margin reflects efficient cost management, allowing Gefran to maintain profitability and reinvest in growth initiatives.

Balance Sheet Health

Gefran's strong balance sheet with low leverage and high equity ratio provides financial stability and flexibility for future investments.

Negative Factors

Cash Flow Challenges

The significant decline in free cash flow growth raises concerns about Gefran's ability to generate cash, which could impact future investments and operations.

Net Profit Margin Decline

A decrease in net profit margin suggests rising expenses or competitive pressures, which could affect long-term profitability if not addressed.

Cash Conversion Efficiency

Moderate cash conversion efficiency indicates potential issues in converting income to cash, which could limit operational flexibility and growth.

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 generates revenue through the sale of its core products, which are primarily sensors and automation systems used in industrial applications. The company's revenue model is based on direct sales to manufacturers and distributors, as well as through strategic partnerships with other companies in the automation and control sectors. Key revenue streams include the sale of sensors, control systems, and software solutions that integrate with existing industrial processes. Additionally, Gefran benefits from recurring revenue through maintenance services and support contracts, which provide ongoing earnings as customers require updates and support for their systems. The company also invests in research and development to innovate and expand its product offerings, positioning itself competitively in the market and attracting new clients.

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	137.14M	132.61M	132.78M	132.52M	116.22M	128.37M
Gross Profit	114.45M	95.43M	71.86M	70.58M	62.32M	63.35M
EBITDA	22.37M	23.06M	24.14M	24.99M	22.83M	16.25M
Net Income	9.82M	11.14M	11.65M	9.99M	13.69M	4.35M
Balance Sheet
Total Assets	162.22M	162.69M	165.18M	154.26M	178.68M	162.96M
Cash, Cash Equivalents and Short-Term Investments	52.90M	59.63M	57.61M	44.11M	35.50M	41.94M
Total Debt	21.33M	25.30M	34.79M	20.41M	34.30M	45.45M
Total Liabilities	62.07M	59.20M	71.24M	63.54M	93.14M	84.78M
Stockholders Equity	99.64M	99.34M	93.94M	90.72M	85.54M	78.18M
Cash Flow
Free Cash Flow	18.83M	20.29M	9.54M	13.59M	19.94M	10.95M
Operating Cash Flow	26.25M	26.66M	20.10M	19.90M	27.38M	16.95M
Investing Cash Flow	-12.13M	-6.33M	-8.11M	15.74M	-8.81M	-4.94M
Financing Cash Flow	-15.84M	-17.90M	636.00K	-25.88M	-25.14M	5.47M

Gefran SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 10.5 is below the 20-day moving average (MA) of 10.84, below the 50-day MA of 11.50, and below the 200-day MA of 10.56, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 36.62 is Neutral, neither overbought nor oversold. The STOCH value of 22.62 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
CRL	71 Outperform	€2.75B	41.78	15.31%	0.67%	3.99%	27.12%
EM	70 Outperform	€149.15M	11.19	4.70%	2.74%	5.40%	26.95%
GE	66 Neutral	€150.91M	15.18	9.97%	4.10%	3.69%	-19.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BSS	56 Neutral	€192.91M	-26.74	-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.