Latest news with #Gelsenwasser
Yahoo
19 hours ago
- Business
- Yahoo
Gelsenwasser (FRA:WWG) Is Reinvesting At Lower Rates Of Return
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after investigating Gelsenwasser (FRA:WWG), we don't think it's current trends fit the mold of a multi-bagger. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Gelsenwasser: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.019 = €40m ÷ (€3.0b - €867m) (Based on the trailing twelve months to December 2024). Thus, Gelsenwasser has an ROCE of 1.9%. In absolute terms, that's a low return and it also under-performs the Integrated Utilities industry average of 7.5%. Check out our latest analysis for Gelsenwasser While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Gelsenwasser has performed in the past in other metrics, you can view this free graph of Gelsenwasser's past earnings, revenue and cash flow. On the surface, the trend of ROCE at Gelsenwasser doesn't inspire confidence. Around five years ago the returns on capital were 2.9%, but since then they've fallen to 1.9%. Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased. From the above analysis, we find it rather worrisome that returns on capital and sales for Gelsenwasser have fallen, meanwhile the business is employing more capital than it was five years ago. It should come as no surprise then that the stock has fallen 56% over the last five years, so it looks like investors are recognizing these changes. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere. If you want to continue researching Gelsenwasser, you might be interested to know about the 1 warning sign that our analysis has discovered. While Gelsenwasser may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. — Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
19 hours ago
- Business
- Yahoo
Gelsenwasser (FRA:WWG) Is Reinvesting At Lower Rates Of Return
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after investigating Gelsenwasser (FRA:WWG), we don't think it's current trends fit the mold of a multi-bagger. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Gelsenwasser: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.019 = €40m ÷ (€3.0b - €867m) (Based on the trailing twelve months to December 2024). Thus, Gelsenwasser has an ROCE of 1.9%. In absolute terms, that's a low return and it also under-performs the Integrated Utilities industry average of 7.5%. Check out our latest analysis for Gelsenwasser While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Gelsenwasser has performed in the past in other metrics, you can view this free graph of Gelsenwasser's past earnings, revenue and cash flow. On the surface, the trend of ROCE at Gelsenwasser doesn't inspire confidence. Around five years ago the returns on capital were 2.9%, but since then they've fallen to 1.9%. Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased. From the above analysis, we find it rather worrisome that returns on capital and sales for Gelsenwasser have fallen, meanwhile the business is employing more capital than it was five years ago. It should come as no surprise then that the stock has fallen 56% over the last five years, so it looks like investors are recognizing these changes. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere. If you want to continue researching Gelsenwasser, you might be interested to know about the 1 warning sign that our analysis has discovered. While Gelsenwasser may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. — Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
01-06-2025
- Business
- Yahoo
Why It Might Not Make Sense To Buy Gelsenwasser AG (FRA:WWG) For Its Upcoming Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Gelsenwasser AG (FRA:WWG) is about to go ex-dividend in just three days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Accordingly, Gelsenwasser investors that purchase the stock on or after the 5th of June will not receive the dividend, which will be paid on the 5th of June. The company's upcoming dividend is €21.16 a share, following on from the last 12 months, when the company distributed a total of €21.16 per share to shareholders. Looking at the last 12 months of distributions, Gelsenwasser has a trailing yield of approximately 4.0% on its current stock price of €525.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Gelsenwasser paid out 60% of its earnings to investors last year, a normal payout level for most businesses. See our latest analysis for Gelsenwasser Click here to see how much of its profit Gelsenwasser paid out over the last 12 months. Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That explains why we're not overly excited about Gelsenwasser's flat earnings over the past five years. Better than seeing them fall off a cliff, for sure, but the best dividend stocks grow their earnings meaningfully over the long run. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Gelsenwasser's dividend payments are broadly unchanged compared to where they were 10 years ago. From a dividend perspective, should investors buy or avoid Gelsenwasser? Gelsenwasser's earnings per share have been essentially flat, and the company is paying out more than half of its earnings as dividends to shareholders. We're unconvinced on the company's merits, and think there might be better opportunities out there. However if you're still interested in Gelsenwasser as a potential investment, you should definitely consider some of the risks involved with Gelsenwasser. Our analysis shows 1 warning sign for Gelsenwasser and you should be aware of this before buying any shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
26-05-2025
- Business
- Yahoo
Investors in Gelsenwasser (FRA:WWG) have unfortunately lost 60% over the last three years
If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But the long term shareholders of Gelsenwasser AG (FRA:WWG) have had an unfortunate run in the last three years. Unfortunately, they have held through a 63% decline in the share price in that time. And over the last year the share price fell 23%, so we doubt many shareholders are delighted. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. We've discovered 1 warning sign about Gelsenwasser. View them for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Although the share price is down over three years, Gelsenwasser actually managed to grow EPS by 0.8% per year in that time. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Alternatively, growth expectations may have been unreasonable in the past. After considering the numbers, we'd posit that the the market had higher expectations of EPS growth, three years back. However, taking a look at other business metrics might shed a bit more light on the share price action. We think that the revenue decline over three years, at a rate of 38% per year, probably had some shareholders looking to sell. And that's not surprising, since it seems unlikely that EPS growth can continue for long in the absence of revenue growth. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Gelsenwasser's TSR for the last 3 years was -60%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. Investors in Gelsenwasser had a tough year, with a total loss of 20% (including dividends), against a market gain of about 17%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 9% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Gelsenwasser better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Gelsenwasser you should know about. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Undiscovered European Gems Including Gelsenwasser With Strong Fundamentals
As European markets experience a notable upswing, with the STOXX Europe 600 Index climbing 2.77% and major indices like Germany's DAX and France's CAC 40 showing significant gains, investors are increasingly turning their attention to smaller companies that might offer unique opportunities amid easing trade tensions. In this favorable environment, stocks with strong fundamentals—such as robust financial health and sustainable growth prospects—are particularly appealing, offering potential resilience against broader economic uncertainties. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Mirbud 16.01% 27.19% 26.48% ★★★★★★ La Forestière Equatoriale NA -58.49% 45.78% ★★★★★★ Linc NA 101.28% 29.81% ★★★★★★ Intellego Technologies 11.59% 68.05% 72.76% ★★★★★★ ABG Sundal Collier Holding 8.55% -4.14% -12.38% ★★★★★☆ Decora 20.76% 12.61% 12.54% ★★★★★☆ Dekpol 73.04% 15.36% 16.35% ★★★★★☆ Practic 5.21% 4.49% 7.23% ★★★★☆☆ BAUER 78.29% 4.31% nan ★★★★☆☆ MCH Group 124.09% 12.40% 43.58% ★★★★☆☆ Click here to see the full list of 357 stocks from our European Undiscovered Gems With Strong Fundamentals screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Value Rating: ★★★★☆☆ Overview: Gelsenwasser AG operates in the water, wastewater, gas supply, and electricity sectors across Germany, the Czech Republic, and Poland with a market capitalization of approximately €1.74 billion. Operations: The primary revenue streams for Gelsenwasser AG are energy procurement and sales, generating €3.26 billion, and energy grids at €273.60 million. Water services contribute €293.20 million, while wastewater brings in €42.70 million, with investments and projects adding another €13.90 million to the total revenue mix. Gelsenwasser, a smaller player in the utilities sector, shows a mixed financial picture. Despite trading 53% below its estimated fair value, recent earnings results reveal challenges. Sales dropped to €2.99 billion from €4.09 billion last year, while net income decreased to €117 million from €132 million. Earnings per share also saw a dip to €34 from the previous year's €39. The company's debt-to-equity ratio increased over five years from 8.9% to 17.9%, although this remains satisfactory at 15%. With high-quality past earnings and positive free cash flow, it still holds potential despite recent setbacks. Navigate through the intricacies of Gelsenwasser with our comprehensive health report here. Assess Gelsenwasser's past performance with our detailed historical performance reports. Simply Wall St Value Rating: ★★★★★★ Overview: Sonaecom SGPS, S.A. is a company that, along with its subsidiaries, engages in the technology, media, and telecommunications sectors globally and has a market capitalization of approximately €770.54 million. Operations: Sonaecom generates revenue primarily from its media and technology segments, with media contributing €16.38 million and technology €3.02 million. The company's market capitalization is approximately €770.54 million. Sonaecom, a nimble player in the telecom sector, has shown resilience with its debt-free status, contrasting sharply with its earlier debt to equity ratio of 0.7%. Despite facing a significant one-off loss of €19M impacting recent financials, it boasts a robust earnings growth of 150% over the past year, outpacing the industry's 8.2%. The company's price-to-earnings ratio stands at 10.7x, offering better value compared to Portugal's market average of 11.8x. While free cash flow remains negative, Sonaecom's profitable operations suggest potential for future stability and growth within this dynamic industry landscape. Dive into the specifics of Sonaecom SGPS here with our thorough health report. Gain insights into Sonaecom SGPS' past trends and performance with our Past report. Simply Wall St Value Rating: ★★★★★☆ Overview: SKAN Group AG, along with its subsidiaries, specializes in offering isolators, cleanroom devices, and decontamination processes to the pharmaceutical and chemical industries globally, with a market capitalization of CHF1.50 billion. Operations: SKAN Group generates revenue primarily from its Equipment & Solutions segment, amounting to CHF270.90 million, and the Services & Consumables segment, contributing CHF90.39 million. SKAN Group, a player in the Life Sciences sector, has been making waves with its impressive earnings growth of 47.5% over the past year, outpacing the industry average of 24.7%. The company trades at a notable discount of 22.9% below its estimated fair value, suggesting potential upside for investors. SKAN's debt to equity ratio rose to 2.7% over five years but remains manageable with interest payments covered 108 times by EBIT. Despite not being free cash flow positive currently, SKAN's profitability and strategic international expansion into Brazil and Asia offer promising avenues for future revenue growth. SKAN Group's significant order growth and backlog suggest potential revenue increases. Click here to explore the full narrative on SKAN Group's investment thesis. Delve into our full catalog of 357 European Undiscovered Gems With Strong Fundamentals here. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DB:WWG ENXTLS:SNC and SWX:SKAN. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
