Stock Analysis & Valuation Gerresheimer AG (GXI.DE)

• Previous Close: €25.22
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	48.43	92
Intrinsic value (DCF)	127.60	406
Graham-Dodd Method	20.33	-19
Graham Formula	32.51	29

Strategic Investment Analysis

Company Overview

Gerresheimer AG is a leading global manufacturer of high-quality packaging products and drug delivery solutions for the pharmaceutical, biotech, and cosmetics industries. Headquartered in Düsseldorf, Germany, the company operates through three key divisions: Plastics & Devices, Primary Packaging Glass, and Advanced Technologies. Gerresheimer specializes in producing inhalers, insulin pens, prefillable syringes, diagnostic systems, and glass vials for pharmaceuticals, as well as premium packaging for cosmetics and fragrances. With a history dating back to 1864, the company has established itself as a trusted partner for healthcare and beauty brands, offering innovative solutions such as smart drug delivery systems, including micro pumps for chronic disease management. Gerresheimer serves a global clientele, ensuring compliance with stringent regulatory standards while driving advancements in medical and cosmetic packaging. Its diversified product portfolio and strong R&D capabilities position it as a critical player in the healthcare and beauty supply chains.

Investment Summary

Gerresheimer AG presents a stable investment opportunity within the medical instruments and supplies sector, supported by its diversified product portfolio and strong market positioning in pharmaceutical and cosmetic packaging. The company’s revenue of €2.04 billion and net income of €109.7 million in the latest fiscal year reflect steady performance, though high capital expenditures (-€369.8 million) and total debt (€1.28 billion) warrant caution. A dividend yield of ~1.25% and a beta of 0.814 suggest moderate volatility and income potential. Gerresheimer’s competitive edge lies in its advanced drug delivery technologies and global supply chain, but investors should monitor debt levels and industry competition, particularly from larger players in the medical packaging space.

Competitive Analysis

Gerresheimer AG holds a strong position in the pharmaceutical and cosmetic packaging industry, leveraging its expertise in glass and plastic manufacturing to serve high-value markets. Its competitive advantage stems from its diversified product offerings, including specialized drug delivery systems like inhalers and micro pumps, which cater to niche therapeutic areas. The company’s long-standing relationships with pharmaceutical and cosmetic giants provide stability, while its R&D investments in Advanced Technologies enhance its innovation pipeline. However, Gerresheimer faces competition from larger global players with broader manufacturing footprints and greater financial resources. Its focus on high-quality, regulatory-compliant solutions differentiates it from low-cost producers, but pricing pressures and raw material costs remain challenges. The company’s ability to maintain margins while expanding in emerging markets will be critical to sustaining its competitive positioning.

Major Competitors

• SGS SA (SGSN.SW): SGS SA is a global leader in inspection, verification, and certification services, including pharmaceutical and packaging testing. While not a direct manufacturer like Gerresheimer, SGS competes in quality assurance segments. Its extensive global network provides an edge in regulatory compliance, but it lacks Gerresheimer’s integrated production capabilities.
• Becton, Dickinson and Company (BDX): BD is a major player in medical technology, offering drug delivery systems like prefillable syringes and injectors. Its scale and R&D budget surpass Gerresheimer’s, but BD’s broader focus on medical devices dilutes its packaging specialization. Gerresheimer’s agility in custom solutions gives it an edge in niche applications.
• West Pharmaceutical Services (WST): West Pharma specializes in injectable drug packaging and delivery systems, directly competing with Gerresheimer’s Primary Packaging Glass division. Its strong U.S. market presence and proprietary materials technology are strengths, but Gerresheimer’s European foothold and cosmetic packaging diversification provide a counterbalance.
• SCHOTT AG (SCHOTT AG): A privately held German firm, SCHOTT is a key rival in glass packaging for pharmaceuticals and cosmetics. Its innovation in specialty glass and global production capacity pose a threat, but Gerresheimer’s integrated plastics division offers a broader product mix that SCHOTT lacks.
• AptarGroup, Inc. (APT): AptarGroup focuses on drug delivery and consumer packaging, overlapping with Gerresheimer’s Plastics & Devices division. Its strong presence in North America and leadership in nasal spray pumps are competitive advantages, but Gerresheimer’s glass packaging expertise provides differentiation in certain pharmaceutical segments.