2G Energy AG Fundamental Analysis (XETRA: 2GB.DE)
2G Energy AG (XETRA: 2GB.DE) shows weak financial fundamentals with a PE ratio of 64.03, profit margin of 3.43%, and ROE of 8.00%. The company generates $0.4B in annual revenue with moderate year-over-year growth of 6.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2GB.DE's fundamental strength across five key dimensions:
Efficiency Score
Weak2GB.DE struggles to generate sufficient returns from assets.
Valuation Score
Moderate2GB.DE shows balanced valuation metrics.
Growth Score
Moderate2GB.DE shows steady but slowing expansion.
Financial Health Score
Excellent2GB.DE maintains a strong and stable balance sheet.
Profitability Score
Weak2GB.DE struggles to sustain strong margins.
Key Financial Metrics
Is 2GB.DE Expensive or Cheap?
P/E Ratio
2GB.DE trades at 64.03 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 2GB.DE's PEG of -1.31 indicates potential undervaluation.
Price to Book
The market values 2G Energy AG at 5.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.38 times EBITDA. This signals the market has high growth expectations.
How Well Does 2GB.DE Make Money?
Net Profit Margin
For every $100 in sales, 2G Energy AG keeps $3.43 as profit after all expenses.
Operating Margin
Core operations generate 6.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.00 in profit for every $100 of shareholder equity.
ROA
2G Energy AG generates $3.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
2G Energy AG generates limited operating cash flow of $24.45M, signaling weaker underlying cash strength.
Free Cash Flow
2G Energy AG produces free cash flow of $15.81M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.88 in free cash annually.
FCF Yield
2GB.DE converts 1.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
64.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 2GB.DE Stacks Against Its Sector Peers
| Metric | 2GB.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 64.03 | 27.30 | Worse (Expensive) |
| ROE | 8.00% | 1167.00% | Weak |
| Net Margin | 3.43% | 44.00% | Weak |
| Debt/Equity | 0.08 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 1.70 | 21.98 | Neutral |
| ROA | 3.07% | -1343549.00% (disorted) | Weak |
2GB.DE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews 2G Energy AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.49%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
38.36%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-495.88%
Industry Style: Cyclical, Value, Infrastructure
Declining