GET.PA Stock Today, December 24: Eurotunnel Cuts UK Capex on 200% Tax
Eurotunnel tax hike is the key driver for Getlink today. The company’s Eurotunnel unit is pausing UK rail investments after a near-200% jump in its assessed value for business rates, calling the burden unsustainable. For German investors in GET.PA, this raises policy risk around capex, pricing, and traffic. Shares trade at €15.81, near the upper Bollinger band, with a rich multiple and solid dividend. We break down what the move could mean for Getlink stock, UK operations, and German trade flows.
What the UK tax change means for Getlink
Eurotunnel plans to cancel UK rail investments after a sharp reassessment of its rateable value for business rates. Management labels the impact unsustainable, highlighting regulatory risk to returns. The decision was reported by industry media and underscores a tougher operating backdrop in Britain for infrastructure owners. See coverage for context in Rail Magazine.
A Eurotunnel tax hike can push management to protect margins by trimming discretionary capex and reviewing tariffs. That could mean higher prices for truck shuttles and passenger crossings, with potential volume elasticity. Any change to UK service standards or costs may nudge mix and load factors. Watch statements on pass-through, contract renewals, and the Channel Tunnel valuation dispute or appeal process.
Why it matters for German investors
Germany exports time‑sensitive goods to the UK. Many loads combine ferry and tunnel options to meet delivery windows. A Eurotunnel tax hike that raises operating costs could feed into freight rates and pricing for car crossings, even if volumes hold. That matters for logistics budgets in automotive, machinery, and chemicals shipping to Britain, where reliability and transit times are key.
If tariffs rise, the effect meets EUR/GBP swings. A weaker euro can offset higher UK‑linked costs, while a stronger euro can help importers but pinch translated earnings. We expect any Eurotunnel tax hike to be framed as temporary or under challenge. Still, investors should track hedging, fuel surcharges, and seasonal price grids across freight and passenger segments.
Stock setup: valuation and fundamentals
At €15.81, Getlink trades on a TTM P/E of 42.71 and a price to sales near 7.27, above many transport peers. Dividend yield is about 3.67% with a 78% payout, signalling limited room for hikes if cash flow slows. EV/EBITDA sits elevated near 21.56. The Channel Tunnel valuation issue adds headline risk that can compress multiples if earnings expectations slip.
Debt to equity is high at 2.19, with interest coverage near 1.99, so cost shocks matter. Free cash flow per share is about €0.90, and capex to revenue is near 10.23%. A Eurotunnel tax hike that sticks could force harder trade‑offs among dividends, deleveraging, and growth. Watch liquidity metrics and net debt to EBITDA, around 6.96, for comfort.
Technical view and near-term levels
Technicals lean warm. RSI is 63.85, stochastic shows 93.83, and CCI is 174.78, all near overbought. Price sits near the Bollinger upper band (€15.84), above the 50‑day (€15.55) and just below the 200‑day (€16.02). That suggests resistance into €16.00–€16.10 and support around the middle band (€15.45) and lower band (€15.06).
Volume today is light at 135,212 versus a 550,833 average, which can amplify moves. Near‑term catalysts include any UK response on business rates and company guidance updates. Wider UK rail policy themes remain in focus, with reports of regional expansion efforts such as the Northumberland line bid covered here. Next earnings are scheduled for 26 February 2026.
Final Thoughts
What should German investors do now? First, track official filings and any appeal or negotiation on UK business rates. A Eurotunnel tax hike that becomes permanent could shift capex plans and pricing. Second, monitor monthly traffic, tariff updates, and freight mix to see how much cost is passed through. Third, watch leverage and interest coverage for signs of stress, given the high debt load. Technically, price is near the upper band with overbought signals, so entries may be better on dips toward the mid-band if fundamentals hold. With a strong yield but rich multiples, position sizing and patience matter while policy noise clears. We will update as guidance emerges.
FAQs
Eurotunnel says its UK business rates base was reassessed with a near-200% jump in the asset valuation used to calculate taxes. Management calls the burden unsustainable and is pausing planned UK rail investments. The issue is about the assessed value, not VAT or corporation tax, and could still be reviewed or appealed.
Policy risk can compress valuation multiples if investors expect lower capex or slower growth. A sustained Eurotunnel tax hike may lift tariffs, which can support revenue but pressure volumes. Watch guidance on pricing, traffic, and operating margins. Technicals show overbought signals, so short‑term pullbacks are possible if headlines worsen.
Watch any tariff or surcharge changes on truck shuttles and passenger crossings, plus seasonal price grids. Also monitor EUR/GBP, since currency can offset or magnify cost moves. If the Eurotunnel tax hike stands, contract renewals and delivery windows may adjust, so plan buffers for time‑sensitive loads.
Valuation is full with a P/E near 42.7, but the dividend yield is about 3.7%. Our stock grade reads B+ with a BUY tilt, while a separate company rating shows Neutral. With price near resistance and policy risk live, many investors may wait for dips or clearer guidance before adding.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
