Fact based stock research
GK Software (XTRA:GKS)
DE0007571424
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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.
GK Software stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), GK Software (Application Software, Germany) shares have much better financial characteristics than comparable stocks. Shares of GK Software are low in value (priced high) with a consolidated Value Rank of 40 (worse than 60% of alternatives). But they show above-average growth (Growth Rank of 77) and are safely financed (Safety Rank of 74, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on GK Software's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company GK Software exhibits low value (Obermatt Value Rank of 40), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 77). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 74) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Germany |
| Industry | Application Software |
| Index | CDAX |
| Size class | Small |
25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: GK Software
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 57 |
|
79 |
|
39 |
|
40 |
|
| GROWTH | ||||||||
| GROWTH | 66 |
|
95 |
|
55 |
|
77 |
|
| SAFETY | ||||||||
| SAFETY | 61 |
|
37 |
|
82 |
|
74 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
20 |
|
10 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
63 |
|
35 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), GK Software (Application Software, Germany) shares have much better financial characteristics than comparable stocks. Shares of GK Software are low in value (priced high) with a consolidated Value Rank of 40 (worse than 60% of alternatives). But they show above-average growth (Growth Rank of 77) and are safely financed (Safety Rank of 74, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on GK Software's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company GK Software exhibits low value (Obermatt Value Rank of 40), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 77). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 74) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 57 |
|
79 |
|
39 |
|
40 |
|
| GROWTH | ||||||||
| GROWTH | 66 |
|
95 |
|
55 |
|
77 |
|
| SAFETY | ||||||||
| SAFETY | 61 |
|
37 |
|
82 |
|
74 |
|
| COMBINED | ||||||||
| COMBINED | 82 |
|
85 |
|
64 |
|
84 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 40 (worse than 60% compared with alternatives), GK Software shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for GK Software. Price-to-Sales (P/S) is 52, which means that the stock price compared with what market professionals expect for future sales is lower than for 52% of comparable companies, indicating a good value concerning GK Software's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 56% of alternatives (44% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 40, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 40, is a hold recommendation based on GK Software's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for GK Software may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). 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) | 85 |
|
78 |
|
50 |
|
52 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 83 |
|
65 |
|
41 |
|
40 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 50 |
|
45 |
|
53 |
|
56 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
57 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 57 |
|
79 |
|
39 |
|
40 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 77 (better than 77% compared with alternatives) for 2024, GK Software shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for GK Software. Sales Growth has a rank of 67 which means that currently, professionals expect the company to grow more than 67% of its competitors. Capital Growth is also above 49% of competitors with a rank of 60, and Stock Returns with the rank of 63 is also an outperformance. Only Profit Growth is low with a rank of 49 which means that currently, professionals expect the company to grow its profits less than 51% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 77, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, GK Software is a good growth 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. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 33 |
|
57 |
|
53 |
|
67 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 68 |
|
91 |
|
39 |
|
49 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
50 |
|
39 |
|
60 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 90 |
|
83 |
|
83 |
|
63 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 66 |
|
95 |
|
55 |
|
77 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 74 (better than 74% compared with alternatives), the company GK Software 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 GK Software 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 GK Software. Refinancing is at 73, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 73% of its competitors. Liquidity is also good at 74, meaning the company generates more profit to service its debt than 74% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 48, which means the company has an above-average debt-to-equity ratio. It has more debt than 52% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 74 (better than 74% compared with alternatives), GK Software 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 GK Software 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 GK Software 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 | 40 |
|
21 |
|
53 |
|
48 |
|
| REFINANCING | ||||||||
| REFINANCING | 86 |
|
77 |
|
71 |
|
73 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 34 |
|
34 |
|
84 |
|
74 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 61 |
|
37 |
|
82 |
|
74 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
89 |
|
21 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
8 |
|
6 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
18 |
|
20 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
20 |
|
10 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for GK Software from April 25, 2024.
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