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1. Company Snapshot

1.a. Company Description

GEA Group Aktiengesellschaft engages in the development and production of systems and components for the food processing industry worldwide.The company operates through five divisions: Separation & Flow Technologies, Liquid & Power Technologies, Food & Health Technologies, Farm Technologies, and Heating & Refrigeration Technologies.It provides separators, decanters, homogenizers, valves, and pumps; and process solutions for the dairy, food, beverage, chemical, and other industries.


The company also offers solutions for food processing and pharmaceutical industries, which includes preparation, marinating, and processing of meat, poultry, seafood, vegan products, pasta production, baking, slicing, packaging, and confectionary, as well as frozen food processing; and granulation systems and tablet presses.In addition, it provides integrated customer solutions for milk production and livestock farming, such as automatic milking, feeding systems, conventional milking solutions, manure handling, and digital herd management tools; and sustainable energy solutions for an array of industries including food, beverage, dairy, and oil and gas in the field of industrial refrigeration and temperature control.The company was formerly known as mg technologies ag and changed its name to GEA Group Aktiengesellschaft in 2005.


GEA Group Aktiengesellschaft was founded in 1881 and is headquartered in Düsseldorf, Germany.

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1.b. Last Insights on G1A

GEA Group Aktiengesellschaft's recent performance is driven by its estimated fair value of €96.73, indicating it may be undervalued by 49% according to an intrinsic calculation. The company's 2 Stage Free Cash Flow to Equity model suggests a potential upside. Additionally, the recent article on December 12, 2024, highlights that despite being a smaller market cap, GEA Group saw a decent share price movement, implying investor interest. The stock's potential for growth and undervaluation make it an attractive opportunity for investors.

1.c. Company Highlights

2. GEA Group AG: Strong Performance and Optimistic Outlook

GEA Group AG delivered a robust second quarter of 2025, exceeding expectations on several fronts. Organic sales grew by 1.5% to EUR 1.3 billion, while EBITDA before restructuring expenses surged 8.1% to EUR 217 million, resulting in a record EBITDA margin of 16.5%. This impressive performance translated into a return on capital employed (ROCE) exceeding 35% for the first time.

Publication Date: Aug -12

📋 Highlights
  • Record EBITDA Margin: EBITDA margin reached 16.5%, a new high driven by 8.1% growth to EUR 217 million.
  • Service Sales Expansion: Service sales hit 40.1% of total sales, fueling growth above new installations.
  • ROCE Milestone: Return on capital employed exceeded 35% for the first time, reflecting operational efficiency.
  • Large Algeria Order: Secured EUR 100,000-tonne annual capacity dairy farm and milk powder facility contract.
  • Free Cash Flow Strength: Four-quarter free cash flow reached EUR 468 million, with a 55% cash conversion ratio.

Service Sales Growth Drives Performance

A key driver of this success was the strong performance of the service business, which reached a high of 40.1% of total sales. This outpaced the growth rate of new installations, demonstrating the company's ability to leverage its installed base and capitalize on recurring revenue streams. This trend is expected to continue, with GEA investing in digital solutions and intelligent pricing models to further enhance service offerings.

Diversified Growth and Regional Expansion

GEA's growth was well-distributed across its divisions, with notable contributions from Separation & Flow Technologies and Food & Healthcare Technologies. The company is also actively expanding its footprint in the U.S. market, exemplified by the recent opening of a new food application and technology center in Wisconsin. This strategic move positions GEA to capitalize on the growing demand for food processing and technology solutions in the region.

Valuation Metrics Reflect Strong Performance

GEA's strong performance is reflected in its valuation metrics. The company's P/E ratio of 28.05 suggests that investors are willing to pay a premium for its growth prospects. Its P/S ratio of 1.97 indicates that the market values its revenue generation capabilities. Furthermore, its strong free cash flow yield of 4.62% highlights its ability to generate cash and return value to shareholders.

3. NewsRoom

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GEA Group Aktiengesellschaft (ETR:G1A) Shares Could Be 39% Below Their Intrinsic Value Estimate

Dec -04

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[Latest] Global Dairy Herd Management Market Size/Share Worth USD 15.23 Billion by 2034 at a 11.37% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, Value, SWOT Analysis)

Nov -25

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GEA Group AG (GEAGF) Q3 2025 Earnings Call Highlights: Strong Financial Performance and ...

Nov -06

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Is Now An Opportune Moment To Examine GEA Group Aktiengesellschaft (ETR:G1A)?

Nov -05

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Market Chatter: Apollo Secures 750 Million Euros Debt Financing From JPMorgan, Deutsche Bank for Kelvion Deal

Sep -11

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LVMH: Share transactions disclosure

Sep -09

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What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

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Société Foncière Lyonnaise (ENXTPA:FLY): Assessing Valuation After a Year of Solid Share Price Gains

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.92%)

6. Segments

Liquid & Powder Technologies

Expected Growth: 4.5%

Growing demand for processed dairy and food products, increasing adoption of automation in pharma industry, and rising need for efficient packaging and handling solutions drive the growth of liquid and powder technologies market.

Separation & Flow Technologies

Expected Growth: 4.5%

Growing demand for efficient separation and processing technologies in industries such as food, pharma, and biotech drives the market growth, driven by increasing focus on product quality, safety, and sustainability.

Food & Healthcare Technologies

Expected Growth: 4.5%

Growing demand for processed and packaged food, increasing focus on food safety and sustainability, and advancements in refrigeration technologies drive the growth of Food & Healthcare Technologies segment.

Farm Technologies

Expected Growth: 7.4%

Growing demand for efficient dairy farming practices, increasing adoption of automation and technology in dairy farming, and rising focus on animal welfare and sustainability drive the growth of farm technologies.

Heating & Refrigeration Technologies

Expected Growth: 4.5%

Growing demand for energy-efficient and environmentally friendly solutions, increasing adoption of industrial automation, and rising concerns over climate change drive the growth of GEA Group's Heating & Refrigeration Technologies segment.

7. Detailed Products

Separation Technology

GEA's separation technology provides solutions for the separation of liquids, gases and solids, including centrifuges, decanters, and separators.

Refrigeration Technology

GEA's refrigeration technology offers solutions for industrial refrigeration, including compressors, condensers, and evaporators.

Liquid Processing Technology

GEA's liquid processing technology provides solutions for the processing of liquids, including homogenization, pasteurization, and aseptic filling.

Powder Processing Technology

GEA's powder processing technology offers solutions for the processing of powders, including drying, agglomeration, and packaging.

Valves and Pumps

GEA's valves and pumps provide solutions for the control and transportation of fluids, including valves, pumps, and automation systems.

Automation and Controls

GEA's automation and controls provide solutions for the automation and control of industrial processes, including control systems and software.

8. GEA Group Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

GEA Group Aktiengesellschaft operates in a industry where substitutes are available, but they are not a significant threat to the company's business. The company's products and services are specialized and have a high level of quality, making it difficult for substitutes to compete.

Bargaining Power Of Customers

GEA Group Aktiengesellschaft has a diverse customer base, which reduces the bargaining power of individual customers. The company's products and services are also highly customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

GEA Group Aktiengesellschaft has a moderate level of dependence on its suppliers, particularly for raw materials and components. However, the company has a diversified supply chain and has implemented strategies to mitigate the risk of supply chain disruptions.

Threat Of New Entrants

The capital requirements and regulatory barriers to entry in the industry are high, making it difficult for new entrants to enter the market. Additionally, GEA Group Aktiengesellschaft has a strong brand reputation and established customer relationships, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The industry in which GEA Group Aktiengesellschaft operates is highly competitive, with several established players competing for market share. The company must continually innovate and improve its products and services to maintain its competitive position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.29%
Debt Cost 8.12%
Equity Weight 93.71%
Equity Cost 8.79%
WACC 8.75%
Leverage 6.71%

11. Quality Control: GEA Group Aktiengesellschaft passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Smiths

A-Score: 6.0/10

Value: 2.7

Growth: 5.1

Quality: 6.7

Yield: 3.1

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
GEA

A-Score: 6.0/10

Value: 2.7

Growth: 5.1

Quality: 6.6

Yield: 3.8

Momentum: 9.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Valmet

A-Score: 5.7/10

Value: 5.1

Growth: 4.8

Quality: 5.1

Yield: 7.5

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
IMI

A-Score: 5.4/10

Value: 1.8

Growth: 5.1

Quality: 6.0

Yield: 2.5

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Mycronic

A-Score: 5.2/10

Value: 1.6

Growth: 8.1

Quality: 8.5

Yield: 3.1

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Fluidra

A-Score: 4.8/10

Value: 3.1

Growth: 6.2

Quality: 5.3

Yield: 4.4

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

57.75$

Current Price

57.75$

Potential

-0.00%

Expected Cash-Flows