GXI GR

Gerresheimer AG

Healthcare


Presented:03/25/2022
Price:€68.55
Cap:$2.40B
Current Price:€83.10
Cap:$3.20B

Presented

Date03/25/2022
Price€68.55
Market Cap$2.40B
Ent Value$4.00B
P/E Ratio25.69x
Book Value€31.25
Div Yield1.82%
Shares O/S31.40M
Ave Daily Vol143,689
Short IntN/A

Current

Price€83.10
Market Cap$3.20B
Gerresheimer AG manufactures and supplies glass and plastic products for the pharmaceutical and healthcare industry. It operates through the following segments: Plastic and Devices and Primary Packaging Glass. The Plastic and Devices segment includes insulin pens, inhalers and refillable syringes as well as diagnostics and medical technology products such as skin-prick aids and test systems and pharmaceutical plastic containers for liquid and solid medicines. The Primary Packaging Glass segment refers to the primary packaging made of glass of medicines and cosmetics such as pharma jars, ampoules, injection vials, cartridges, perfume flacons and cream jars, and special containers for food and drinks. The company was founded in 1864 and is headquartered in Duesseldorf, Germany.

Publicly traded companies mentioned herein: Gerresheimer AG (GXI GR)

Highlights

The presenter is long shares of Gerresheimer AG (GXI GR), a medical packaging business based in Germany he views as an undervalued (8x consensus 2023 EBITDA) “show me” story following some self-inflicted wounds that has called management’s credibility into question. While he acknowledges these mistakes, the current setup seems beatable and management may be learning from past issues. He is most intrigued by the margin expansion story, believing the company can grow EBITDA margins from 20% in 2021 to the mid- to high-20% range in the back half of the decade, and estimates HSD% organic growth in the core business (with outsized growth in the newer segments) for each of the next few years. In contrast, the Street models MSD% total revenue growth after 2022 and EBITDA margins reaching just 23% in 2026. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.