Gesco AG
Gesco AG Fundamental Analysis
Gesco AG (GSC1.DE) shows weak financial fundamentals with a PE ratio of 20.36, profit margin of 1.49%, and ROE of 2.79%. The company generates $0.5B in annual revenue with weak year-over-year growth of -8.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GSC1.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakGSC1.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateGSC1.DE shows balanced valuation metrics.
Growth Score
WeakGSC1.DE faces weak or negative growth trends.
Financial Health Score
ExcellentGSC1.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateGSC1.DE maintains healthy but balanced margins.
Key Financial Metrics
Is GSC1.DE Expensive or Cheap?
P/E Ratio
GSC1.DE trades at 20.36 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GSC1.DE's PEG of 2.21 indicates potential overvaluation.
Price to Book
The market values Gesco AG at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.77 times EBITDA. This is generally considered low.
How Well Does GSC1.DE Make Money?
Net Profit Margin
For every $100 in sales, Gesco AG keeps $1.49 as profit after all expenses.
Operating Margin
Core operations generate 3.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.79 in profit for every $100 of shareholder equity.
ROA
Gesco AG generates $1.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gesco AG generates limited operating cash flow of $45.71M, signaling weaker underlying cash strength.
Free Cash Flow
Gesco AG produces free cash flow of $35.32M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.41 in free cash annually.
FCF Yield
GSC1.DE converts 22.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How GSC1.DE Stacks Against Its Sector Peers
| Metric | GSC1.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.36 | 25.84 | Better (Cheaper) |
| ROE | 2.79% | 1279.00% | Weak |
| Net Margin | 1.49% | -43714.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 2.14 | 10.62 | Strong Liquidity |
| ROA | 1.64% | -1537441.00% (disorted) | Weak |
GSC1.DE outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gesco AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.99%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-72.28%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
36.96%
Industry Style: Cyclical, Value, Infrastructure
High Growth