GEAGF - GEA Group: This Industrial Systems Supplier Is Too Pricey Here (Downgrade)
2024-04-16 15:48:55 ET
Summary
- GEA Group is a solid company with a strong market position in the industrial sector.
- The company specializes in building systems for food production, beverage production, and the pharma sector.
- Despite not being a market-beating investment, GEA Group has potential if bought at the right price and with the right fundamentals.
Dear readers/followers,
GEA Group Aktiengesellschaft ( OTCPK:GEAGF ) is a company that I have been reviewing for years and was, in fact, one of the first companies that I reviewed on Seeking Alpha that hails from Germany. You can find my latest article review for this company if you follow this link , and that article was positive in terms of the rating. This article was released back in December 2023, and my thesis at the time was expecting some further cyclicality, but normalization - which has not yet materialized, but I expect that it will. The change in this article is that I believe we're leaving behind some of this cyclicality for stability, but the valuation is no longer as appealing, leading to me changing my stance on this company from a positive to a neutral one.
GEA group has not been a market-beating investment, and in this specific situation, it also has a lower yield than I would consider ideal given what else is available on the market as well as the risk-free rates that we currently have....
GEA Group: This Industrial Systems Supplier Is Too Pricey Here (Downgrade)