Geberit AG shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
●
Strengths
●
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
●
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
●
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 34.68 times its estimated earnings per share for the ongoing year.
● Based on current prices, the company has particularly high valuation levels.
●
●
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
Geberit AG is the European leader in designing, manufacturing, and marketing sanitary systems intended for the construction and building renovation sectors. Net sales break down by family of products as follows:
- sanitary plumbing systems (38.3%): complete installed sanitary systems (showers, bathtubs, toilets, bidets, sinks, urinals, etc.), ball-valves, trigger plates, flush tanks, siphons, etc.;
- sanitary ceramic products (31.2%);
- pipe systems (30.5%): systems and conduits made of stainless steel, carbon steel, and copper, for draining water from buildings and roofs, distributing water and gas, etc.
At the end of 2021, the group had 26 production sites worldwide.
Net sales are distributed geographically as follows: Switzerland (9.5%), Germany (31.3%), Eastern Europe (10.1%), Nordic Countries (9.6%), Benelux (8.4%), Italy (6.8 %), Austria (6.2%), France (5.4%), the United Kingdom and Ireland (3.1%), Iberian Peninsula (0.8%) and other (8.8%).