GFT Group (GFT)

Business description

GFT Group is a global technology services and recruitment business primarily focused on banks and insurance companies.

Stock data

Market cap.€543.8m
Last close€20.66
High / Low (52 weeks)€32.3 / €13.9
Stock market listingDE
Forecast net debt (€m)44.8
Forecast gearing ratio (%)40

Price performance

Relative *(17.5)(10.4)74.6

* % Relative to local index

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Company news

MOVES-Paul Harrington joins GFT Group as principal consultant

Tue, 15 Dec 2015 10:37:19 GMT

GFT Partners With Enterprise Data Management Council to Help Firms Adopt Data ...

Wed, 21 Oct 2015 13:18:22 GMT

Financial Service Sector Boosts GFT Group Nine-Month Results

Thu, 12 Nov 2015 17:25:55 GMT

GFT Announce Partnership with FinTech City and the Launch of New Innovation ...

Mon, 18 Jan 2016 09:00:00 GMT

GFT Launches Blockchain App for Commodities, Allowing Clients to Track ...

Thu, 07 Jan 2016 09:07:31 GMT

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2013A 264.3 20.8 18.4 55.0 37.6 57.0
2014A 365.3 37.0 32.4 96.2 21.5 23.3
2015E 368.0 45.0 37.3 103.8 19.9 12.1
2016E 404.0 55.8 47.3 131.2 15.7 9.7

Last updated on 10/12/2015

Investment summary

GFT continued to grow apace with organic revenue growth (excluding Rule Financial) of 19% in Q3. Margins continued to expand with the adjusted operating margin rising by 100bp to 11.0% over Q2. While FY15 growth has mainly come from the investment banking sector, the pipeline for 2016 is focused on several large retail banking projects including a digital banking project in Italy and a large project for Banco Sabadell. The latter involves integrating the acquired TSB in the UK into Sabadell’s IT infrastructure and is expected to involve c 100 consultants. Hence, GFT expects FY16 growth to be driven by retail banking, with stronger growth in Germany, Italy and Spain. Given management’s increased guidance, we upgraded our EPS forecasts by 2% in FY15 and 4% in each of FY16 and FY17. In our view, if management can continue to maintain the momentum, the stock still looks attractive, trading on c 22x our FY17 EPS.

Last updated on 05/01/2016

Industry outlook

GFT provides consulting and IT services, primarily to commercial and investment banks. It benefits from high levels of IT spending and complex business requirements in the financial services industry. It also benefits from favourable outsourcing trends in banking and has integrated near/farshore hubs in Spain, Poland and Brazil.

Last updated on 05/01/2016

Key management

Ulrich Dietz, Chairman & CEO
Jochen Ruetz , CFO

Company address

Filderhauptstraße 142,
+49 711 62042-0
View website