GVS S.p.A (GVS) AI Stock Analysis

• Market Cap: €772.79M
• Dividend Yield: N/A
• Average Volume (3M): 129.73K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 0.78
• Revenue Growth: -2.51%
• EPS Growth: 26.79%
• Country: IT
• Employees: 4,234
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.06
• Shares Outstanding: 189,177,690
• 10 Day Avg. Volume: 77,567
• 30 Day Avg. Volume: 129,729
• PEG Ratio: 0.18
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 14.37
• 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: €6.50
• Price Target Upside: 58.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: €4.00 ▼(-2.20% Downside)

The overall stock score of 53 reflects significant challenges in financial performance, particularly in revenue growth and cash flow management. Technical indicators suggest bearish momentum, and the valuation indicates potential overvaluation. These factors combined suggest caution for potential investors.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate efficient cost management and pricing power, supporting long-term profitability and competitive positioning.

Stable Balance Sheet

A stable balance sheet with manageable debt levels provides financial flexibility and supports sustainable growth and investment capacity.

Innovation and R&D Focus

Investment in R&D drives innovation, helping GVS to meet evolving client needs and maintain a competitive edge in filtration technology.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests challenges in market expansion and sales performance, potentially impacting long-term business sustainability.

Reduced Profitability

Declining net profit margins indicate challenges in cost control and pricing strategy, affecting overall profitability and shareholder returns.

Cash Flow Challenges

Negative free cash flow growth highlights liquidity constraints, limiting the company's ability to invest in growth opportunities and manage debt.

GVS S.p.A Business Overview & Revenue Model

Company Description

GVS S.p.A., together with its subsidiaries, produces and sells filter solutions for applications in the healthcare and life science, energy and mobility, and health and safety sectors in Italy and internationally. The company offers health and safety products, such as hand dryer and vacuum cleaner filters; double nailstation, kidney nailstation, rectangle nail station with storage cupboard, and rectangular nailstation products; fume extraction and HVAC building products; and disposable masks, half masks, integra masks, powered air purifying respirators, replacement filters, supplied air respirators, spare parts, and accessories. It also provides autoclave filters, insufflation and ventilation filters and kits, machine filters, respiratory and anesthesia filters, smoke evacuation filters and kits, spirometry filters and accessories, suction filters, and tracheal humidifier filters; healthcare liquid products, such as bacterial air vents, blood filters, infusion disc filters, IV and liquid filters, IV flow regulators, medical components, transducer protectors; and capsule and cartridge filters, disc and sheet membranes, DNA/RNA test kits, filter papers, microbiology products, microfiltration devices, microporous and track etched roll membranes, protein microarrays, and environmental monitoring and western blotting products. In addition, the company offers energy and mobility products, such as fuel tank and fuel pump filters, gears, throttle plates and shafts, reservoir filters, SCR urea systems; ABS, ESP, and brake systems; EV applications and batteries; injection, tank vapour ventilation, and transmission products; ventilation systems; and viral shield cabin air and engine air intake filters. GVS S.p.A. was formerly known as GVS S.r.l. and changed its name to GVS S.p.A. in 2001. The company was founded in 1979 and is headquartered in Zola Predosa, Italy. GVS S.p.A. is a subsidiary of GVS Group S.p.A.

How the Company Makes Money

GVS generates revenue primarily through the sale of its filtration products across multiple sectors. Key revenue streams include the healthcare sector, where GVS provides filters for medical devices and pharmaceutical applications; the automotive sector, offering filtration solutions for air and fluid management; and industrial applications, supplying filters for air quality and environmental control. Additionally, GVS collaborates with significant partners in these industries to develop customized solutions, enhancing its market presence and expanding its customer base. The company's focus on research and development also contributes to its profitability by allowing it to innovate and meet the evolving needs of its clients.

GVS S.p.A Financial Statement Overview

Summary

GVS S.p.A shows strong gross profit margins and a stable balance sheet. However, declining revenue growth, reduced profitability, and cash flow challenges indicate areas for improvement. The company needs to enhance operational efficiency and cash management.

Income Statement

GVS S.p.A's income statement shows a mixed performance. The TTM gross profit margin is strong at 65.6%, indicating efficient cost management. However, the net profit margin has decreased to 3.6% from 7.7% in the previous year, reflecting challenges in maintaining profitability. Revenue growth is negative at -1.75%, suggesting a decline in sales. The EBIT and EBITDA margins have also contracted, indicating reduced operational efficiency.

Balance Sheet

The balance sheet of GVS S.p.A reflects a stable financial position with a debt-to-equity ratio of 0.77, which is manageable. The return on equity has decreased to 3.67% in the TTM, indicating lower profitability from shareholders' equity. The equity ratio is healthy, suggesting a strong capital structure. However, the declining ROE points to potential challenges in generating returns.

Cash Flow

The cash flow statement shows a decline in free cash flow growth at -3.5%, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.34, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is low at 3.3%, highlighting limited cash available after capital expenditures. These metrics suggest a need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	424.25M	431.03M	424.74M	389.68M	339.73M	364.58M
Gross Profit	250.24M	297.75M	95.92M	193.91M	206.97M	239.81M
EBITDA	90.41M	107.12M	81.69M	79.48M	115.76M	128.79M
Net Income	22.86M	33.37M	13.65M	24.10M	67.59M	78.06M
Balance Sheet
Total Assets	870.49M	930.35M	983.12M	993.05M	608.57M	412.36M
Cash, Cash Equivalents and Short-Term Investments	57.41M	133.85M	193.79M	139.76M	145.06M	129.94M
Total Debt	34.19M	349.04M	493.98M	515.42M	253.07M	97.43M
Total Liabilities	442.48M	479.12M	648.64M	665.38M	313.22M	169.66M
Stockholders Equity	427.98M	451.18M	334.45M	327.63M	295.31M	242.67M
Cash Flow
Free Cash Flow	2.10M	59.77M	73.39M	53.26M	32.29M	82.71M
Operating Cash Flow	64.69M	97.13M	101.57M	76.12M	55.48M	114.07M
Investing Cash Flow	-44.70M	-83.92M	-26.83M	-256.43M	-148.24M	-45.54M
Financing Cash Flow	-39.26M	-102.28M	-14.91M	178.78M	100.71M	1.04M

GVS S.p.A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.09
• 50DMA: Positive
• 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:GVS, the sentiment is Negative. The current price of 4.09 is below the 20-day moving average (MA) of 4.09, above the 50-day MA of 3.98, and below the 200-day MA of 4.47, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:GVS.

GVS S.p.A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMB	76 Outperform	€1.14B	25.11	21.53%	2.75%	6.00%	20.37%
COM	69 Neutral	€1.45B	24.30	―	1.80%	-20.36%	-23.31%
ELN	68 Neutral	€1.11B	26.22	15.29%	1.58%	-18.41%	-15.30%
LUVE	66 Neutral	€893.81M	24.95	―	1.08%	―	―
ZV	64 Neutral	€680.93M	20.59	9.41%	5.87%	-5.62%	-44.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GVS	53 Neutral	€772.79M	32.49	5.87%	―	-2.51%	26.79%