GEA Group AG

GEA Group focuses on the development and production of process technology and components for production methods. Co. segments include: GEA Food Solutions, which manufactures machinery for preparing, marinating, processing, cutting, and packaging meat, poultry, and other foods; GEA Farm Technologies, which manufacturers product solutions for milk production and livestock farming; GEA Mechanical Equipment, which concentrates in separators, decanters, valves, pumps, and homogenizers; GEA Process Engineering, which designs and develops of process solutions for the pharmaceutical, and chemical industries; and GEA Refrigeration Technologies, which concentrates in refrigeration technology.
  • Ticker660200
  • ISINDE0006602006
  • SectorIndustrial Engineering
  • CountryGermany

Analysts

Ibrahim Firdaus

GEA Group

GEA Group Aktiengesellschaft - December 2017 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

GEA Group Aktiengesellschaft: GEA's second profit warning in less than a year is credit negative but does not affect its Baa2 rating

CORPORATES ISSUER COMMENT 19 July 2017 RATINGS GEA Group Aktiengesellschaft Long term issuer rating Baa2 Outlook stable Contacts Oliver Giani 49-69-70730-722 VP-Senior Analyst [email protected] Anke Rindermann 49-69-70730-788 Associate Managing Director [email protected] Perrine Bajolle 49-69-70730-902 Associate Analyst [email protected] GEA Group Aktiengesellschaft GEA

GEA Group Aktiengesellschaft: Annual update of credit opinion

CORPORATES CREDIT OPINION 7 July 2017 Update RATINGS GEA Group Aktiengesellschaft Domicile Dusseldorf, Germany Long Term Rating Baa2 Type LT Issuer Rating - Dom Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Oliver Giani 49-69-70730-722 VP-Senior Analyst oliver

Denise Molina

Morningstar | GEA's New Division Structure Separates the Cream; Shares Attractive

After seven months on the board and just a few months at the helm, wide-moat GEA’s new CEO, and CFO, presented a new divisional structure. Management did not give financial targets--these will come at the CMD in September. However, the new divisions highlight the out- and underperforming businesses--where management will focus the expected restructuring plan. We still think the stock is cheap, trading at a 34% discount to our EUR 38 fair value estimate. We see much low-hanging fruit in terms of cost-cutting--moving to cheaper countries on manufacturing, now disproportionately done in Western c...

Denise Molina

GEA's New Division Structure Separates the Cream; Shares Attractive

After seven months on the board and just a few months at the helm, wide moat GEA’s new CEO, and CFO, presented a new divisional structure. Management did not give financial targets--these will come at the CMD in September. However, the new divisions highlight the out- and underperforming businesses--where management will focus the expected restructuring plan. We still think the stock is cheap, trading at a 34% discount to our EUR 38 fair value estimate. We see much low-hanging fruit in terms of ...

Denise Molina

Morningstar | GEA's New Management Takes Necessary Steps to Curb Lower-Margin Business Exposure

Wide-moat GEA Group's first-quarter results did not show any major changes in the trend: The equipment business continued to outperform the project (solutions) business, which again dragged down the group's margins. However, the shares rose sharply in response to the new CEO's announcement of 200-250 job cuts, namely in the dairy processing and project areas. This is long overdue. The overcapacity in dairy processing has been apparent for a couple of years. This is the new CEO's second major move to derisk the business in the three months since he officially took the helm. The first move was t...

Denise Molina

GEA's New Management Takes Necessary Steps to Curb Lower-Margin Business Exposure

Wide-moat GEA Group's first-quarter results did not show any major changes in the trend: The equipment business continued to outperform the project (solutions) business, which again dragged down the group's margins. However, the shares rose sharply in response to the new CEO's announcement of 200-250 job cuts, namely in the dairy processing and project areas. This is long overdue. The overcapacity in dairy processing has been apparent for a couple of years. This is the new CEO's second major mov...

Denise Molina

Morningstar | GEA Announces Full-Year Results and High Level Steps for Restructuring; Shares Undervalued

We are maintaining our wide moat rating for GEA Group. While the shares rallied on the back of high level restructuring measures announced by new management, GEA still trades at a deep discount to our fair value estimate, negative 38% relative to our EUR 38 fair value estimate, and below 2 times book value. Details behind the high level comments won't come until September's capital markets day, but nearly all the initiatives are in line with low hanging fruit that we've highlighted in our notes and reports. We think the greatest valuation impact will come from 1) restructuring the solutions b...

1 director bought

A director at Gea Group Ag bought 6,350 shares at 23.602EUR and the significance rating of the trade was 65/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board ...

Ibrahim Firdaus

GEA Group

Ibrahim Firdaus

GEA Group

Ibrahim Firdaus

GEA Group

GEA GROUP AG with less fundamental stars is reduced to Neutral

GEA GROUP AG (DE), a company active in the Diversified Industrials industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date May 3, 2019, the closing price was EUR 24.35 and its expected value was estimated at EUR 24.0...

Ibrahim Firdaus

GEA Group

Expert Corporate Governance Service (ECGS)

GEA Group - AGM 26 April 2019

Item 2: We recommend to oppose the dividend proposal. The dividend is neither covered by earnings nor by free cash flow, the latter for a third consecutive year. We therefore consider a dividend payment inappropriate at this time. Item 3: We recommend to oppose the discharge of the Management Board due to the frequent profit warnings in recent financial years, which in our view raise fundamental concerns over the reliability of the Management Board's forecasting ability and its communication to stakeholders. Item 6: We recommend to oppose the election of Colin Hall to the Supervisory Board d...

Expert Corporate Governance Service (ECGS)

Proxy Report - 19/04/2018

Item 3: We recommend to oppose the discharge of the Management Board due to our concerns triggered by the two profit warnings issued by the Company in financial years 2017 and 2016. Item 6: We recommend opposing the share repurchase authorisation requested by the Company as we consider it currently not being in shareholders' interest. General: On 18 March 2018, the Company disclosed that CEO Jürg Oleas had informed the Supervisory Board that he is not seeking to extend his term of office beyond 31 December 2019 and had suggested to leave the Management Board at the AGM 2019 "in order to allo...

Expert Corporate Governance Service (ECGS)

Etude de l'AG du 20/04/2017

Item 5: KPMG, Berlin, is proposed as auditor for the current financial year. KPMG has audited the Company since the financial year 2011. Ratio of non-audit/audit fees was 71.40% during the year under review and 64.70% over a three-year aggregate period which exceeds our guidelines. We therefore recommend opposing the proposal.Item 6: The Company shall be authorised until 19 April 2022 to increase the share capital by up to EUR 77m (~15% of the share capital) by issuing shares against contributions in cash. The total shares issued while disapplying preemptive rights under the proposed authorisa...

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