Fact based stock research
GFT (XTRA:GFT)

DE0005800601

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

GFT stock research in summary

gft.com

ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), GFT (IT Consulting & oth. Services, Germany) shares have much better financial characteristics than comparable stocks. Shares of GFT are a good value (attractively priced) with a consolidated Value Rank of 93 (better than 93% of alternatives), are safely financed (Safety Rank of 66, which means low debt burdens), but show below-average growth (Growth Rank of 23). ...read more

RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on GFT's financial characteristics. As the company GFT's key financial metrics exhibit good value (Obermatt Value Rank of 93) but low growth (Obermatt Growth Rank of 23) while being safely financed (Obermatt Safety Rank of 66), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 93% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	93
Growth Rank	23
Safety Rank	66
Combined Rank	81

Country	Germany
Industry	IT Consulting & oth. Services
Index	CDAX
Size class	Medium

This stock has achievements: Gold Winner CEO, Top 10 Stock.

28-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: GFT

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	65	65	75	93
GROWTH
GROWTH	97	77	53	23
SAFETY
SAFETY	65	16	81	66
SENTIMENT
SENTIMENT	n/a	39	73	^new
360° VIEW
360° VIEW	n/a	57	94	^new

Most recent update of the stock research: 28-Nov-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better GFT is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	65	65	75	93
GROWTH
GROWTH	97	77	53	23
SAFETY
SAFETY	65	16	81	66
COMBINED
COMBINED	94	58	92	81

Last update of combined financial performance: 28-Nov-2024. Stock analysis on combined financial performance: The higher the rank of GFT the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 93 (better than 93% compared with alternatives) for 2024, GFT shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for GFT. Price-to-Sales is 84 which means that the stock price compared with what market professionals expect for future sales is lower than for 84% of comparable companies, indicating a good value for GFT's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 85% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 67. Compared with other companies in the same industry, dividend yields of GFT are expected to be higher than for 77% of all competitors (a Dividend Yield rank of 77). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 93, is a buy recommendation based on GFT's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in GFT based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	61	74	73	84
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	65	47	81	85
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	19	34	38	67
DIVIDEND YIELD
DIVIDEND YIELD	73	70	67	77
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	65	65	75	93

Last update of Value Rank: 28-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of GFT; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 23 (better than 23% compared with alternatives), GFT shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for GFT. Only Capital Growth has a good rank of 51, which means that currently professionals expect the company to grow its invested capital more than 30% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 43 which means that currently professionals expect the company to grow less than 57% of its competitors. Profit Growth with a rank of 30 and Stock Returns with a rank of 13 are also low (below 87% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for GFT is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	68	62	57	43
PROFIT GROWTH
PROFIT GROWTH	14	70	40	30
CAPITAL GROWTH
CAPITAL GROWTH	n/a	16	74	51
STOCK RETURNS
STOCK RETURNS	94	100	39	13
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	97	77	53	23

Last update of Growth Rank: 28-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of GFT.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 66 (better than 66% compared with alternatives), the company GFT has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of GFT is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for GFT. Refinancing is at 55, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Liquidity is also good at 75, meaning the company generates more profit to service its debt than 75% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 44, which means the company has an above-average debt-to-equity ratio. It has more debt than 56% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 66 (better than 66% compared with alternatives), GFT has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and GFT could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with GFT and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	46	17	46	44
REFINANCING
REFINANCING	44	31	51	55
LIQUIDITY
LIQUIDITY	67	54	92	75
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	65	16	81	66

Last update of Safety Rank: 28-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of GFT and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	87	81	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	25	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	4	100	^new
MARKET PULSE
MARKET PULSE	n/a	52	43	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	39	73	^new

Last update of Sentiment Rank: 28-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for GFT.
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