Gesco AG

GSC1.DE

Conglomerates · Industrials

Also trades as: 0Q4C.L

Price

€14.30

-0.15 (-1.04%)

Market Cap

€148.0M

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Good

Cash Flow

Strong

Stability

Strong

Valuation

Strong

Dividends

Weak

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Share count falling — buybacks

−4.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 10.8M (2021) → 10.4M (2025)

Winston Score History

The full picture

Gesco AG is a German holding company that owns a collection of small and mid-sized industrial businesses. Its subsidiaries make specialized parts and equipment for industries like healthcare, automotive, and mechanical engineering. The company is based in Wuppertal, Germany, and focuses on acquiring and managing what are called "hidden champion" niche manufacturers.

Gesco makes money by owning these businesses and collecting the profits they generate — a model sometimes called a buy-and-build or industrial holding strategy. It operates primarily in German-speaking Europe, with some international exposure through its subsidiaries. With a market cap of around €100 million, it is a small company, and its competitive edge comes from operational expertise in running niche industrial firms that larger conglomerates tend to ignore. The main risk is that its low operating margin of around 4.5% leaves little room for error if economic conditions in European manufacturing weaken, which has been a real pressure in recent years.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+104.2% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

€0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

30.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€35M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Gesco AG is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

47.4%

Healthy — 47.4% gross margin

Profit after running costs

Operating Margin

6.3%

Modest — 6.3% operating margin

Return on the money invested

ROCE

7.7%

Weak — 7.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+1.9%

Nearly flat sales (+1.9% YoY)

Profit growth

EPS YoY

+96.5%

Earnings growing fast (+96.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

178%

Turns 178% of profit into real cash

Spare cash per sale

FCF Margin

1.8%

Thin free cash flow (1.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.23

Conservative — low debt load (0.23)

Covers its interest

Interest Cover

7.77x

Adequate interest coverage (7.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

11.2x

Attractive valuation — P/E 11.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+5.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (11.2 → 6.1)

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Dividends

Dividend

Dividend Yield

1.49%

Small dividend — 1.49% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-37.3%

Dividend cut (-37.3% YoY) — warning sign

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