Gefran SPA (GE) AI Stock Analysis

• Market Cap: €147.32M
• Dividend Yield: 4.2%
• Average Volume (3M): 5.90K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.47
• Revenue Growth: 3.43%
• EPS Growth: -0.61%
• Country: IT
• Employees: 699
• Sector: Industrials
• Sector Strength: 90
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.29
• Shares Outstanding: 14,400,000
• 10 Day Avg. Volume: 4,845
• 30 Day Avg. Volume: 5,897
• PEG Ratio: 5.04
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.75
• 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: €12.00
• Price Target Upside: 17.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: €11.50 ▲(12.20%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

Acquisitions

The recent acquisition of CZ Elettronica enhances the turn-key solutions offering in the plastics and metals sectors.

Earnings

Gefran delivered a strong set of 1Q25 results, marking a clear acceleration in organic growth to mid-single digits, supported by a recovery in the Sensors segment and the EU market.

Negative Factors

Cost Management

EBITDA margin is experiencing pressure due to higher personnel costs.

Profitability

Despite a strong 1Q performance, FY25E profitability is expected to remain stable, as cost increases are likely to offset volume-driven gains.

Gefran SPA Business Overview & Revenue Model

Company Description

Gefran S.p.A. is an Italian company that operates in the industrial automation sector. It is primarily engaged in the design, production, and marketing of products and solutions for measuring, controlling, and driving industrial processes. The company's core product offerings include sensors, automation components, and motion control systems, which are utilized in a wide range of industries such as plastics, metalworking, and food processing.

How the Company Makes Money

Gefran S.p.A. generates revenue primarily through the sale of its industrial automation products and solutions. The company's key revenue streams include the manufacturing and distribution of sensors, which are used for measuring variables like temperature, pressure, and position; automation components, which facilitate the control and regulation of industrial processes; and motion control systems that manage the movement of machinery and equipment. Additionally, Gefran benefits from its global presence and partnerships with distributors and integrators, which enhance its market reach and customer base. The company's earnings are also supported by its continuous investment in research and development to innovate and improve its product offerings.

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: 10.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 10.25 is below the 20-day moving average (MA) of 10.26, below the 50-day MA of 10.36, and above the 200-day MA of 9.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 76.74 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
CRL	75 Outperform	€2.65B	46.91	13.25%	0.70%	-8.83%	-22.83%
GE	72 Outperform	€147.32M	12.75	11.38%	4.20%	3.43%	-0.61%
EM	66 Neutral	€141.13M	15.38	3.19%	2.90%	10.53%	-41.19%
Sector *	65 Neutral	$10.94B	15.63	5.18%	1.91%	3.14%	-27.13%
BSS	56 Neutral	€209.90M	55.99	1.43%	0.52%	-3.86%	-69.97%

Gefran SPA Corporate Events

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.

Gefran S.p.A. Approves 2024 Financials and Dividend, Authorizes Share Buyback

Gefran S.p.A. held its ordinary shareholders’ meeting, approving the 2024 financial statements and a dividend of 0.43 Euro per share, reflecting the company’s solid performance and ability to generate value. The meeting also authorized the purchase of own shares, highlighting Gefran’s strategic approach to market challenges and its commitment to shareholder value. The company reported consolidated revenues of 132.6 million Euros and a positive net result of 11.1 million Euros, indicating strong financial health and resilience in a complex market environment.