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GEA Group AG Owner Earnings per Share (TTM)

: 3.81 (As of Sep. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

GEA Group AG's Owner Earnings per Share (TTM) ended in Sep. 2021 was $3.81. It's Price-to-Owner-Earnings ratio for today is 13.32.


The historical rank and industry rank for GEA Group AG's Owner Earnings per Share (TTM) or its related term are showing as below:

OTCPK:GEAGF' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 6.98   Med: 18.88   Max: 1222.22
Current: 13.32

6.98
1222.22

During the past 13 years, the highest Price-to-Owner-Earnings ratio of GEA Group AG was 1222.22. The lowest was 6.98. And the median was 18.88.


OTCPK:GEAGF's Price-to-Owner-Earnings is ranked higher than
71% of the 1406 Companies
in the Industrial Products industry.

( Industry Median: 24.36 vs. OTCPK:GEAGF: 13.32 )

GEA Group AG's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $0.53. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $1.27. It's PE Ratio ratio for today is 39.96.

GEA Group AG's EPS without NRI for the three months ended in Sep. 2021 was $0.58. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $1.25. It's PE Ratio without NRI ratio for today is 40.54.


GEA Group AG Owner Earnings per Share (TTM) Historical Data

The historical data trend for GEA Group AG's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

GEA Group AG Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.49 1.10 0.77 2.12 3.76

GEA Group AG Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.51 3.76 3.89 3.55 3.93

Competitive Comparison

For the Specialty Industrial Machinery subindustry, GEA Group AG's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

GEA Group AG Owner Earnings per Share (TTM) Distribution

For the Industrial Products industry and Industrials sector, GEA Group AG's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where GEA Group AG's Owner Earnings per Share (TTM) falls into.



GEA Group AG Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

GEA Group AG's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 229
Depreciation, Depletion and Amortization 259
Change In Deferred Tax 0
5Y Average of Maintenance Capital Expenditure 99
Change In Working Capital 340
Shares Outstanding (Diluted Average) 180

1. Start with "Net Income" from income statement. GEA Group AG's Net Income for the trailing twelve months (TTM) ended in Sep. 2021 was $229 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. GEA Group AG's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2021 was $259 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. GEA Group AG's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2021 was $0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $99 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

GEA Group AG's 5-Year Average Maintenance Capital Expenditure = $99 Mil

5. "Change In Working Capital" is from cashflow statement. GEA Group AG's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2021 was $340 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. GEA Group AG's Shares Outstanding (Diluted Average) for the months ended in Sep. 2021 was 180.300 Mil.

GEA Group AG's Onwer Earnings Per Share for Sep. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 229.28937247118 +259.19873850552+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-99.195612433388+340.33771885185)/180.300
=3.81

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=50.75/3.81
=13.32

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


GEA Group AG Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of GEA Group AG's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


GEA Group AG Business Description

GEA Group AG logo
Industry
Industrials » Industrial Products NAICS : 333999 SIC : 3559
Traded in Other Exchanges
Address
Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468
GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using the company's specialised equipment.
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