Gestamp GEST.MC
Gestamp is a Spanish multinational dedicated to the design, development, and manufacturing of metal components for the automotive industry, such as chassis and body structures. Gestamp presents an attractive valuation (P/E 9.26, EV/EBITDA 4.49) and 23.9% earnings growth, but its operating margin is weak (4.94%) and cash conversion is low (10.63%), raising doubts about the sustainability of its profitability.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
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Gestamp is a Spanish multinational dedicated to the design, development, and manufacturing of metal components for the automotive industry, such as chassis and body structures. Gestamp presents an attractive valuation (P/E 9.26, EV/EBITDA 4.49) and 23.9% earnings growth, but its operating margin is weak (4.94%) and cash conversion is low (10.63%), raising doubts about the sustainability of its profitability.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.3 |
| Quality / Moat | 4.2 |
| Valuation | 8.7 |
| Growth | 5.9 |
| Dividend | 6.5 |
| Momentum | 3.5 |
| Risk & Context | 5.1 |
OVERALL SCORE: 5.8/10
Context and risks
Gestamp operates in the automotive sector, a cyclical industry. The context of rising interest rates and a potential global economic slowdown could affect vehicle demand, although there is no direct exposure to the mentioned macro factors. The main risk is dependence on the automotive industry, which is cyclical and subject to changes in demand.
News considered in the analysis
- Gestamp (BME:GEST) Margin Miss Challenges Bullish Profit Growth Narrative — La noticia cuestiona la narrativa de crecimiento de beneficios debido a un margen operativo débil (4.94%), lo que sugiere presión sobre la rentabilidad futura.
Verdict: Hold. Valuation is attractive, but margin weakness and cash conversion suggest caution until operational improvement is demonstrated.
Main risk: The main risk is the weak operating margin (4.94%) and low cash conversion (10.63%), which could indicate structural issues in the business's profitability.
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