| GEA GROUP (DE0006602006) | |||
58,85 EURStand (close): 01.07.25 |
 |
||
Nachrichten |
||
| Datum / Uhrzeit | Titel | Bewertung |
| 27.06.25 07:59:23 | A Look At The Fair Value Of GEA Group Aktiengesellschaft (ETR:G1A) |  |
| Key Insights Using the 2 Stage Free Cash Flow to Equity, GEA Group fair value estimate is €62.91 GEA Group's €58.75 share price indicates it is trading at similar levels as its fair value estimate The €55.43 analyst price target for G1A is 12% less than our estimate of fair value Does the June share price for GEA Group Aktiengesellschaft (ETR:G1A) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. What's The Estimated Valuation? We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €369.4m €508.1m €604.8m €559.0m €532.9m €517.5m €509.0m €505.0m €504.3m €505.6m Growth Rate Estimate Source Analyst x4 Analyst x5 Analyst x4 Analyst x1 Est @ -4.67% Est @ -2.89% Est @ -1.64% Est @ -0.77% Est @ -0.16% Est @ 0.27% Present Value (€, Millions) Discounted @ 5.8% €349 €454 €511 €446 €402 €369 €343 €322 €304 €288 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €3.8b Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (1.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 5.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €506m× (1 + 1.3%) ÷ (5.8%– 1.3%) = €11b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €11b÷ ( 1 + 5.8%)10= €6.5b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €10b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of €58.8, the company appears about fair value at a 6.6% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.XTRA:G1A Discounted Cash Flow June 27th 2025 Important Assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at GEA Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.8%, which is based on a levered beta of 1.044. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for GEA Group SWOT Analysis for GEA Group Strength Currently debt free. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Machinery market. Opportunity Annual earnings are forecast to grow for the next 3 years. Current share price is below our estimate of fair value. Threat Annual earnings are forecast to grow slower than the German market. Looking Ahead: Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For GEA Group, there are three further aspects you should further research: Financial Health: Does G1A have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does G1A's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every German stock every day, so if you want to find the intrinsic value of any other stock just search here. — Weekly Picks from Community Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 0.2% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 09.05.25 13:00:39 | GEA Group AG (GEAGF) Q1 2025 Earnings Call Highlights: Strong Start with Record EBDA Margin and ... |  |
| Order Intake: 1.4 billion, a year-over-year increase of 3.7%. Sales: Increased by 1.4% to 1.3 billion; organic sales growth of 0.9%. EBDA Before Restructuring Expenses: Increased by 9.8% to 198 million. EBDA Margin: Improved from 14.5% to 15.8%. Return on Capital Employed (ROCE): Reached 34.9%. Share Buyback Program: 400 million completed, 9.5 million shares repurchased. Net Liquidity: Decreased by 32 million to 186 million. Organic Service Sales Growth: 10.3% year-over-year. New Machine Sales: Declined organically by 4.9% year-over-year. Free Cash Flow: Negative 49 million, improved from the prior year's 57 million. Cash Conversion Ratio: Improved from 48% to 63%. Net Cash Development: Impacted by share buyback and negative free cash flow. Warning! GuruFocus has detected 9 Warning Signs with BMDPF. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points GEA Group AG (GEAGF) reported a strong start to the fiscal year with a 3.7% year-over-year increase in order intake, reaching 1.4 billion. EBDA before restructuring expenses increased by 9.8% year-over-year to 198 million, with the EBDA margin improving significantly to 15.8%, setting a new record for the first quarter. The company successfully completed a 400 million share buyback program, resulting in a 38% increase in stock price since the buyback. Service sales grew organically by 10.3% year-over-year, marking the 18th consecutive quarter of organic service sales growth. Return on capital employed reached a new high of 34.9%, demonstrating strong financial performance and efficient capital utilization. Negative Points Sales growth was modest at 1.4%, with organic sales growth at only 0.9%, partly due to a slower start in new machine sales. New machine sales declined organically by 4.9% year-over-year, indicating challenges in this segment. Net liquidity decreased by 32 million year-over-year to 186 million, despite strong cash generation. The farm technologies division experienced a significant organic sales decline of 11.4% year-over-year due to a low order backlog. The company faces potential risks from geopolitical uncertainties and US tariffs, although the impact is currently considered limited. Q & A Highlights Q: How has the mix of higher service sales versus machine sales impacted the gross margin improvement? A: Stefan Klebert, CEO, explained that the company is improving margins in both service and new equipment. The positive impact on gross margin is not solely due to the mix shift towards service sales, but also due to improvements in new equipment margins. The company remains optimistic about continued performance improvements. Story Continues Q: Why is the company not raising its guidance despite a strong start to the year? A: Stefan Klebert, CEO, stated that although the year started well, only three months have passed, and it's too early to adjust the guidance. The company remains comfortable with its current guidance and is monitoring the situation closely. Q: Can you provide more insight into the pricing and cost discipline environment? A: Bernd Brinker, CFO, mentioned that the company expects a 2-3% inflation rate for 2025, with pricing covering about 50% of that increase. Operating expenses have risen due to increased efforts in rolling out global ERP structures, leading to higher expenses in the magnitude of 10-15 million. Q: Have there been any supply chain disruptions due to global trade conflicts? A: Bernd Brinker, CFO, reported no significant supply chain disruptions so far. The company's setup is favorable, and they have not faced any meaningful disruptions related to global trade conflicts. Q: How does the company view the balance between new product sales and service growth? A: Stefan Klebert, CEO, explained that the average lifetime of their equipment is about 20 years, so fluctuations in new equipment orders do not significantly impact the installed base. The company continues to see opportunities for service growth and has implemented various initiatives to enhance service offerings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
||
| 11.04.25 05:20:29 | Institutional investors in GEA Group Aktiengesellschaft (ETR:G1A) lost 7.4% last week but have reaped the benefits of longer-term growth | |
| Key Insights Given the large stake in the stock by institutions, GEA Group's stock price might be vulnerable to their trading decisions A total of 7 investors have a majority stake in the company with 51% ownership Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you want to know who really controls GEA Group Aktiengesellschaft (ETR:G1A), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Institutional investors was the group most impacted after the company's market cap fell to €8.4b last week. Still, the 39% one-year gains may have helped mitigate their overall losses. They should, however, be mindful of further losses in the future. Let's delve deeper into each type of owner of GEA Group, beginning with the chart below. View our latest analysis for GEA Group XTRA:G1A Ownership Breakdown April 11th 2025 What Does The Institutional Ownership Tell Us About GEA Group? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that GEA Group does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see GEA Group's historic earnings and revenue below, but keep in mind there's always more to the story.XTRA:G1A Earnings and Revenue Growth April 11th 2025 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in GEA Group. Our data shows that Kuwait Investment Authority is the largest shareholder with 11% of shares outstanding. For context, the second largest shareholder holds about 9.7% of the shares outstanding, followed by an ownership of 9.2% by the third-largest shareholder. We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent. Story Continues While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of GEA Group The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here. General Public Ownership The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Public Company Ownership Public companies currently own 6.9% of GEA Group stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow . If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 28.03.25 04:54:17 | GEA Group's (ETR:G1A) Upcoming Dividend Will Be Larger Than Last Year's | |
| GEA Group Aktiengesellschaft (ETR:G1A) will increase its dividend from last year's comparable payment on the 6th of May to €1.15. This takes the annual payment to 2.0% of the current stock price, which unfortunately is below what the industry is paying. GEA Group's Projected Earnings Seem Likely To Cover Future Distributions The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Based on the last payment, GEA Group was quite comfortably earning enough to cover the dividend. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. The next year is set to see EPS grow by 45.5%. Assuming the dividend continues along recent trends, we think the payout ratio could be 34% by next year, which is in a pretty sustainable range.XTRA:G1A Historic Dividend March 28th 2025 Check out our latest analysis for GEA Group GEA Group Has A Solid Track Record The company has an extended history of paying stable dividends. Since 2015, the annual payment back then was €0.70, compared to the most recent full-year payment of €1.15. This works out to be a compound annual growth rate (CAGR) of approximately 5.1% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios. The Dividend Looks Likely To Grow Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. GEA Group has impressed us by growing EPS at 45% per year over the past five years. GEA Group is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future. GEA Group Looks Like A Great Dividend Stock Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 14 GEA Group analysts we track are forecasting continued growth with our freereport on analyst estimates for the company. Is GEA Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 21.03.25 13:24:45 | GEA downgraded by RBC as restructuring costs cloud growth outlook | |
| Investing.com -- GEA Group Aktiengesellschaft's (ETR:G1AG) latest earnings report presents a complex picture, balancing strong operational performance with concerns over long-term profitability. RBC Capital Markets has downgraded the stock to “sector perform” from “outperform,” citing a challenging path toward its ambitious Mission 30 targets. The price target has been revised down to €52 from €54 . Despite a 60% re-rating over the past year, GEA now trades in line with the industrial sector, reflecting solid business execution and robust cash flow. However, RBC analysts have flagged key concerns that could hinder further revaluation. "The share re-rated by c.60% in the past year and today trades fully in line with our European cap goods coverage. We do not imply that management is over-promising, but rather we see the path towards the Mission 30 targets as rocky," the analysts said. The food processing market remains in a state of stagnation, with volume recovery obstructed by high product prices. Additionally, GEA’s internal restructuring efforts, particularly under Mission 26 and Mission 30, are expected to result in higher one-off costs than current consensus estimates suggest. "Also, we argue that consensus' assumption of restructuring costs remaining 2/3 below GEA's 10-year average costs (-40bps vs -130bps) are too optimistic, especially given the upcoming projects that GEA aims to address from 2025 onwards (ERP, streamlining organisation)," RBC added. Fourth-quarter results were mixed. While order intake exceeded expectations and provided a positive highlight, higher restructuring charges and an elevated tax rate led to an earnings miss. Revenue guidance for fiscal year 2025—forecasted at +1-4% organic growth—was also at the lower end of expectations, raising doubts about the feasibility of long-term margin expansion. "We have bigger doubts on the margin targets and stay c.130bps below the 17-19% EBITDA margin target by 2030," the analysts said. RBC has adjusted its financial outlook, reducing FY2025 earnings estimates by 2-7%. Net profit projections have been lowered by 14% to €416 million, trailing consensus by 7%. "As a result, we lower our FY25 net profit assumption by 14% to €416m, trailing consensus by 7%," RBC said. The revision factors in higher restructuring charges, estimated at €40 million, and an increased tax assumption of 29% compared to the previous 23.3%. The brokerage also remains skeptical about GEA’s ability to reach its Mission 30 EBITDA margin target of 17-19%, maintaining a forecast that sits 130 basis points lower. Story Continues RBC believes the stock is fully valued, reflecting current performance and future expectations. "We see no incremental upside and downgrade to Sector Perform with a new PT of €52," the brokerage said. The downgrade reflects the view that restructuring costs, IT investments, and product design modifications—though necessary for long-term efficiencies—will weigh on near-term profitability. The absence of additional upside in the stock’s valuation, coupled with execution risks in achieving Mission 30 targets, led to the downgrade. Related Articles GEA downgraded by RBC as restructuring costs cloud growth outlook This is what needs to happen for Sanofi shares to rally in 2025: Goldman Sachs Tele2 considers selling Baltic mobile towers for €500 million - Bloomberg View Comments |
||
| 20.03.25 12:33:56 | Rock Tech Lithium Partners with GEA for Key Equipment at Lithium Converter in Germany | |
| Rock Tech Lithium (RCK.V) said Thursday that it partnered with GEA Group to deliver key equipment fo PREMIUM Upgrade to read this MT Newswires article and get so much more. A Silver or Gold subscription plan is required to access premium news articles. Upgrade Already have a subscription? Sign in |
||
| 15.03.25 07:40:10 | GEA Group Full Year 2024 Earnings: EPS Misses Expectations | |
| GEA Group (ETR:G1A) Full Year 2024 Results Key Financial Results Revenue: €5.42b (flat on FY 2023). Net income: €398.2m (down 1.6% from FY 2023). Profit margin: 7.3% (down from 7.5% in FY 2023). EPS: €2.38.XTRA:G1A Revenue and Expenses Breakdown March 15th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period GEA Group EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. The primary driver behind last 12 months revenue was the Liquid & Powder Technologies segment contributing a total revenue of €1.67b (31% of total revenue). Notably, cost of sales worth €3.46b amounted to 64% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to €643.6m (41% of total expenses). Explore how G1A's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Machinery industry in Germany. Performance of the German Machinery industry. The company's share price is broadly unchanged from a week ago. Balance Sheet Analysis Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We have a graphic representation of GEA Group's balance sheet and an in-depth analysis of the company's financial position. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 14.03.25 04:47:30 | GEA Group's (ETR:G1A) Upcoming Dividend Will Be Larger Than Last Year's | |
| GEA Group Aktiengesellschaft's (ETR:G1A) dividend will be increasing from last year's payment of the same period to €1.15 on 6th of May. Even though the dividend went up, the yield is still quite low at only 2.0%. Check out our latest analysis for GEA Group GEA Group's Payment Could Potentially Have Solid Earnings Coverage Even a low dividend yield can be attractive if it is sustained for years on end. Based on the last payment, GEA Group was quite comfortably earning enough to cover the dividend. This indicates that quite a large proportion of earnings is being invested back into the business. Over the next year, EPS is forecast to expand by 47.3%. Assuming the dividend continues along recent trends, we think the payout ratio could be 33% by next year, which is in a pretty sustainable range.XTRA:G1A Historic Dividend March 14th 2025 GEA Group Has A Solid Track Record The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was €0.70 in 2015, and the most recent fiscal year payment was €1.15. This works out to be a compound annual growth rate (CAGR) of approximately 5.1% a year over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns. The Dividend Looks Likely To Grow Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. GEA Group has impressed us by growing EPS at 45% per year over the past five years. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have. We Really Like GEA Group's Dividend In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 13 GEA Group analysts we track are forecasting continued growth with our freereport on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 12.03.25 07:04:55 | GEA Group AG (GEAGF) (FY 2024) Earnings Call Highlights: Record Order Intake and Strong ... | |
| Order Intake: EUR5.6 billion for 2024, a year-over-year increase of 1.5% or 4.6% in organic terms. Sales: EUR5.4 billion, with organic sales growth of 3.7%. EBITDA Before Restructuring Expenses: EUR837 million, an increase of 8.1% year-over-year. EBITDA Margin: Improved from 14.4% in 2023 to 15.4% in 2024. Return on Capital Employed: 33.8%, within the guided range of 32% to 35%. Dividend Proposal: Increase of 15% to EUR1.15 per share. Free Cash Flow: EUR505 million for the full year, a 50% increase from 2023. Net Liquidity: EUR344 million, despite cash outflows for share buyback and dividends. Service Sales Share: 38.9% for the full year 2024. Net Working Capital to Sales Ratio: 6.0%, below the guided corridor of 8% to 10%. Share Buyback Program: EUR284 million executed, representing 71% of the EUR400 million program. Warning! GuruFocus has detected 1 Warning Sign with BSP:TFCO4. Release Date: March 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points GEA Group AG (GEAGF) achieved its Mission 26 financial targets two years ahead of schedule, demonstrating strong business performance. The company reported a total shareholder return of 30.7% in 2024, outperforming benchmarks such as the MDAX stocks TMI and the DAX 50 ESG. Order intake reached a record level of EUR5.6 billion for 2024, with a year-over-year increase of 1.5% or 4.6% in organic terms. EBITDA before restructuring expenses increased by 8.1% year-over-year to EUR837 million, with the EBITDA margin improving to 15.4%. GEA Group AG (GEAGF) has been recognized for its sustainability efforts, receiving a platinum rating from EcoVadis and being ranked among the top 5% in its industry by Standard and Poor Global. Negative Points Despite strong order intake, there is uncertainty about the sustainability of such high levels in future quarters. The company faces challenges in the farm technologies segment due to low milk prices and subsidy levels in key markets like Japan and China. There is a potential for minor restructuring charges in 2025 related to the farm technologies business. The EBITDA margin guidance for 2025 is slightly below the long-term target, reflecting a conservative approach amid economic uncertainties. The company is experiencing increased personnel costs and implementation costs related to its global ERP program, which may impact profitability. Q & A Highlights Q: How sustainable is the strong order intake level seen in Q4, and what are the expectations for the first half of the year? A: Stefan Klebert, CEO, acknowledged the difficulty in predicting single quarters but expressed optimism for a good year due to a promising pipeline of projects. He emphasized that the strong Q4 order intake was not solely reliant on large projects, indicating a healthy demand across divisions. Story Continues Q: Can you provide insights into the higher tax rate guidance for this year and its impact on cash tax rates? A: Bernd Brinker, CFO, explained that the higher tax rate aligns with expectations and is influenced by profitability estimates in key markets like the US. He assured that the cash tax rate is expected to remain consistent with previous levels. Q: With the recent capacity cuts and layoffs, is GEA equipped to handle increased volumes in the PTE segment? A: Bernd Brinker, CFO, confirmed that GEA is well-prepared to manage increased volumes, having made organizational adjustments to enhance efficiency without creating resource bottlenecks. Q: What are the drivers behind the strong service sales growth, and can it be sustained into 2025? A: Stefan Klebert, CEO, attributed the growth to a comprehensive strategy involving transparency in installed bases, increased sales personnel, new contract models, and pricing activities. He expressed confidence in sustaining this growth trajectory. Q: How do you view the impact of tariffs on order trends in the US, one of GEA's largest markets? A: Stefan Klebert, CEO, stated that there are currently no new tariffs affecting exports from Europe to the US. He expressed confidence in GEA's ability to manage potential tariff impacts due to local production capabilities and the strength of the European machine-building sector. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
||
| 10.03.25 12:23:21 | Is GEA Group Aktiengesellschaft's (ETR:G1A) Recent Stock Performance Tethered To Its Strong Fundamentals? | |
| GEA Group (ETR:G1A) has had a great run on the share market with its stock up by a significant 19% over the last three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to GEA Group's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. See our latest analysis for GEA Group How Is ROE Calculated? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for GEA Group is: 17% = €407m ÷ €2.3b (Based on the trailing twelve months to September 2024). The 'return' is the profit over the last twelve months. That means that for every €1 worth of shareholders' equity, the company generated €0.17 in profit. Why Is ROE Important For Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. GEA Group's Earnings Growth And 17% ROE To begin with, GEA Group seems to have a respectable ROE. Especially when compared to the industry average of 10% the company's ROE looks pretty impressive. This probably laid the ground for GEA Group's significant 46% net income growth seen over the past five years. We reckon that there could also be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Next, on comparing with the industry net income growth, we found that GEA Group's growth is quite high when compared to the industry average growth of 17% in the same period, which is great to see.XTRA:G1A Past Earnings Growth March 10th 2025 Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. What is G1A worth today? The intrinsic value infographic in our free research report helps visualize whether G1A is currently mispriced by the market. Story Continues Is GEA Group Using Its Retained Earnings Effectively? GEA Group's three-year median payout ratio is a pretty moderate 43%, meaning the company retains 57% of its income. So it seems that GEA Group is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered. Additionally, GEA Group has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 47% of its profits over the next three years. As a result, GEA Group's ROE is not expected to change by much either, which we inferred from the analyst estimate of 19% for future ROE. Summary In total, we are pretty happy with GEA Group's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
