GERRESHEIMER AG (GXI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GXI - DE000A0LD6E6 - Common Stock
25.56 EUR
-0.92 (-3.47%)
Overall GXI gets a fundamental rating of 3 out of 10. We evaluated GXI against 22 industry peers in the Life Sciences Tools & Services industry. GXI has a bad profitability rating. Also its financial health evaluation is rather negative. GXI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- GXI had positive earnings in the past year.
- GXI had a positive operating cash flow in the past year.
- In the past 5 years GXI has always been profitable.
- Each year in the past 5 years GXI had a positive operating cash flow.
1.2 Ratios
- GXI's Return On Assets of 0.50% is on the low side compared to the rest of the industry. GXI is outperformed by 81.82% of its industry peers.
- The Return On Equity of GXI (1.67%) is worse than 77.27% of its industry peers.
- GXI has a worse Return On Invested Capital (2.79%) than 81.82% of its industry peers.
- GXI had an Average Return On Invested Capital over the past 3 years of 6.14%. This is below the industry average of 9.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 1.67% | ||
| ROIC | 2.79% |
ROA(3y)3.04%
ROA(5y)3.09%
ROE(3y)7.67%
ROE(5y)8.3%
ROIC(3y)6.14%
ROIC(5y)6.08%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.04%, GXI is doing worse than 81.82% of the companies in the same industry.
- In the last couple of years the Profit Margin of GXI has remained more or less at the same level.
- GXI's Operating Margin of 5.99% is on the low side compared to the rest of the industry. GXI is outperformed by 81.82% of its industry peers.
- GXI's Operating Margin has improved in the last couple of years.
- GXI has a Gross Margin of 26.89%. This is in the lower half of the industry: GXI underperforms 77.27% of its industry peers.
- In the last couple of years the Gross Margin of GXI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 1.04% | ||
| GM | 26.89% |
OM growth 3Y-0.21%
OM growth 5Y2.69%
PM growth 3Y-1.23%
PM growth 5Y-1.47%
GM growth 3Y0.37%
GM growth 5Y1.38%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GXI is destroying value.
- GXI has about the same amout of shares outstanding than it did 1 year ago.
- GXI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GXI has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.96, we must say that GXI is in the distress zone and has some risk of bankruptcy.
- GXI has a worse Altman-Z score (0.96) than 81.82% of its industry peers.
- GXI has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of GXI (1.22) is worse than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACC0.33
WACC8.5%
2.3 Liquidity
- GXI has a Current Ratio of 0.98. This is a bad value and indicates that GXI is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.98, GXI is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
- GXI has a Quick Ratio of 0.98. This is a bad value and indicates that GXI is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.52, GXI is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
- GXI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.08%.
- The Earnings Per Share has been decreasing by -8.23% on average over the past years.
- The Revenue has grown by 11.83% in the past year. This is quite good.
- Measured over the past years, GXI shows a small growth in Revenue. The Revenue has been growing by 7.90% on average per year.
EPS 1Y (TTM)-19.08%
EPS 3Y4.26%
EPS 5Y-8.23%
EPS Q2Q%-39.66%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y10.77%
Revenue growth 5Y7.9%
Sales Q2Q%12.47%
3.2 Future
- The Earnings Per Share is expected to grow by 5.50% on average over the next years.
- GXI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.16% yearly.
EPS Next Y-38.18%
EPS Next 2Y-19.95%
EPS Next 3Y-6.67%
EPS Next 5Y5.5%
Revenue Next Year13.03%
Revenue Next 2Y8.75%
Revenue Next 3Y7.84%
Revenue Next 5Y7.16%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 6.93, which indicates a rather cheap valuation of GXI.
- 100.00% of the companies in the same industry are more expensive than GXI, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of GXI to the average of the S&P500 Index (28.60), we can say GXI is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.52, the valuation of GXI can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, GXI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of GXI to the average of the S&P500 Index (25.83), we can say GXI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.93 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
- GXI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GXI is cheaper than 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.42 |
4.3 Compensation for Growth
- GXI's earnings are expected to decrease with -6.67% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.95%
EPS Next 3Y-6.67%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.15%, GXI is not a good candidate for dividend investing.
- GXI's Dividend Yield is slightly below the industry average, which is at 0.48.
- Compared to an average S&P500 Dividend Yield of 1.82, GXI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
5.2 History
- The dividend of GXI has a limited annual growth rate of 0.94%.
Dividend Growth(5Y)0.94%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- 10.12% of the earnings are spent on dividend by GXI. This is a low number and sustainable payout ratio.
- GXI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.12%
EPS Next 2Y-19.95%
EPS Next 3Y-6.67%
GERRESHEIMER AG / GXI.DE FAQ
What is the ChartMill fundamental rating of GERRESHEIMER AG (GXI.DE) stock?
ChartMill assigns a fundamental rating of 3 / 10 to GXI.DE.
What is the valuation status for GXI stock?
ChartMill assigns a valuation rating of 5 / 10 to GERRESHEIMER AG (GXI.DE). This can be considered as Fairly Valued.
How profitable is GERRESHEIMER AG (GXI.DE) stock?
GERRESHEIMER AG (GXI.DE) has a profitability rating of 3 / 10.
What is the expected EPS growth for GERRESHEIMER AG (GXI.DE) stock?
The Earnings per Share (EPS) of GERRESHEIMER AG (GXI.DE) is expected to decline by -38.18% in the next year.
How sustainable is the dividend of GERRESHEIMER AG (GXI.DE) stock?
The dividend rating of GERRESHEIMER AG (GXI.DE) is 3 / 10 and the dividend payout ratio is 10.12%.