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GEA Group AG G1A

Morningstar Rating
€38.66 −0.18 (0.46%)
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Company Report

GEA Earnings: Profit Margin Progression Impresses in Early 2024; Shares Remain Compelling and FVE Up

Wide-moat GEA Group delivered an impressive first-quarter result that featured resilient top-line growth—amid a weakened demand environment for food manufacturing equipment—coupled with robust profit margin progression. As we'd expected, demand for food processing equipment remains weak in early 2024, leading GEA's first-quarter order intake to fall about 10% organically. The decline in new orders was relatively broad-based, with all divisions reporting weakened order intake, aside from the food and healthcare technologies division, which benefited from a large order from a pharmaceutical customer).

Price vs Fair Value

G1A is trading at a 124% premium.
Price
€38.84
Fair Value
€65.00
Uncertainty
Medium
1-Star Price
€84.69
5-Star Price
€11.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

GEA is well positioned to benefit from rising demand for packaged, ready-to-eat food and beverages, spurred on by a growing, more urbanized global population.

Bears

GEA’s turnkey solutions tend to offer less opportunity to capture aftermarket sales relative to their highly engineered equipment offering.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
€38.84
Day Range
€38.3839.00
52-Week Range
€31.6940.69
Bid/Ask
€38.58 / €0.00
Market Cap
€6.54 Bil
Volume/Avg
443,349 / 270,700

Key Statistics

Price/Earnings (Normalized)
15.10
Price/Sales
1.25
Dividend Yield (Trailing)
2.57%
Dividend Yield (Forward)
2.57%
Total Yield
3.38%

Company Profile

GEA Group is one of the world’s largest suppliers of processing systems and equipment for the food, beverage, and pharmaceutical industries. Across its five divisions, GEA designs and manufactures process engineering equipment and offers turnkey solutions for customers’ processing lines or product(s). GEA also offers a comprehensive aftermarket offering spanning maintenance services and spare parts and components.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Mid Core
Total Number of Employees
19,581

Competitors

Valuation

Metric
G1A
ALFA
ABBN
Price/Earnings (Normalized)
15.1026.5324.74
Price/Book Value
2.685.097.99
Price/Sales
1.253.123.23
Price/Cash Flow
12.5622.3424.29
Price/Earnings
G1A
ALFA
ABBN

Financial Strength

Metric
G1A
ALFA
ABBN
Quick Ratio
0.800.850.83
Current Ratio
1.151.361.23
Interest Coverage
13.6519.1119.59
Quick Ratio
G1A
ALFA
ABBN

Profitability

Metric
G1A
ALFA
ABBN
Return on Assets (Normalized)
7.06%7.80%8.77%
Return on Equity (Normalized)
17.66%17.84%27.51%
Return on Invested Capital (Normalized)
16.10%12.45%15.88%
Return on Assets
G1A
ALFA
ABBN
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