Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Gesco AG operates in the process, resource, healthcare, and infrastructure technology sectors in Germany and internationally. It develops, produces, and markets plastic spools and injection-molded technical parts. The company also provides special steels, steel foundry, casting, and coating and hardening products. In addition, it turns parts made of brass, aluminum, red brass, and Cuphin in diameters of 6 to 140 mm; and offers galvanic surface finishing, assembly installation, thermal material treatment, soldering, welding, and compression services. Further, it manufactures machine cladding and frames, covers, housings, and containers from high-end stainless-steel sheets; milling machines for linear tooth profiles, and clamping systems; straightening machines and wheel presses for rolling stock; and processing equipment for pharmaceutical, food, water technology, and chemical industries, as well as processes strip steel. Additionally, it offers suspension systems and control box technology for use in medical and automation technology, mechanical engineering, and plant construction; paper sticks for confectionery and hygiene industries; and safety equipment for loading and unloading liquid and gaseous materials on and off ships and tankers. The company was founded in 1989 and is headquartered in Wuppertal, Germany.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT
Target Price
The average target price of GSC1.DE is 22 and suggests 59% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incre