ADLER Group (ADJ) AI Stock Analysis

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ADLER Group

(XETRA:ADJ)

Rating:42Neutral

Price Target:

€0.00

▼(-100.00% Downside)

ADLER Group's overall stock score is primarily driven by its poor financial performance, which poses significant risks. The technical analysis suggests a bearish trend, and the valuation, while appearing low, is likely reflective of underlying financial difficulties rather than a true opportunity. The lack of earnings call data and corporate events further limits positive influences on the score.

ADLER Group (ADJ) vs. iShares MSCI Germany ETF (EWG)

Market Cap

$33.51M

Dividend YieldN/A

Average Volume (3M)111.74K

Price to Earnings (P/E)<0.1

Beta (1Y)0.22

Revenue Growth-21.76%

EPS GrowthN/A

CountryDE

Employees478

SectorReal Estate

Sector Strength48

IndustryReal Estate - Services

Share Statistics

EPS (TTM)N/A

Shares Outstanding151,626,110

10 Day Avg. Volume87,443

30 Day Avg. Volume111,740

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap125.56

Enterprise Value/Revenue11.53

Enterprise Value/Gross Profit92.20

Enterprise Value/Ebitda3.71

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusHold

Number of Analyst Covering0

ADLER Group Business Overview & Revenue Model

Company DescriptionADLER Group (ADJ) is a prominent real estate company specializing in the acquisition, development, and management of residential properties in Germany and select European markets. The company focuses on providing high-quality living spaces while enhancing urban environments. Its core portfolio includes a mix of multi-family homes, residential developments, and commercial properties, catering to various segments of the housing market.

How the Company Makes MoneyADLER Group generates revenue primarily through rental income from its extensive portfolio of residential properties. The company leases apartments and homes to individuals and families, which provides a steady cash flow. Additionally, ADLER earns income from property management services and the sale of developed residential units. The company also engages in strategic partnerships with local governments and private developers to facilitate new construction projects, which can lead to significant capital gains. Furthermore, ADLER Group may benefit from real estate appreciation over time, contributing to overall profitability.

ADLER Group Earnings Call Summary

Earnings Call Date:Aug 28, 2025

(Q3-2024)

% Change Since: |

Next Earnings Date:Nov 27, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements in terms of asset disposal, rental growth, and LTV reduction. However, challenges remain with reduced net rental income, negative FFO, and high debt costs. The company's efforts to stabilize and focus on Berlin's market are evident, but financial pressures persist.

Q3-2024 Updates

Positive Updates

Successful Disposal of Stake in Brack Capital Properties

Disposed 62.8% stake in Brack Capital Properties, generating approximately EUR 219 million in net cash proceeds, ahead of business plan expectations.

Operational Performance in Rental Portfolio

Achieved strong like-for-like rental growth of 4.1% year-on-year, driven by indexation of rental contracts and reletting activities. Average in-place rent increased to EUR 7.71 per square meter per month.

Significant Reduction in Loan-to-Value (LTV) Ratio

LTV decreased to 62.6% from 105.7% following recapitalization efforts.

Extension of Bank Maturities

Successfully extended all bank maturities due in 2024 and secured approvals for extensions of loans maturing in 2025 and 2026.

Stability in Portfolio Valuation

Portfolio valuation remained stable at EUR 4.1 billion with no major disposals or valuation adjustments.

Negative Updates

Decrease in Net Rental Income

Net rental income decreased by 3% to EUR 155 million for the first 9 months of 2024 due to past portfolio sales.

Negative FFO 1 from Rental Activities

FFO 1 from rental activities remained negative at minus EUR 88 million, impacted by increased interest expenses.

High Cost of Debt

Weighted average cost of debt increased to 7.9% from 6.4%, with efforts ongoing to optimize capital structure and reduce interest costs.

Company Guidance

During the Adler Group's Q3 2024 earnings call, several key metrics and updates were provided. The company announced the disposal of a 62.8% stake in Brack Capital Properties, generating approximately EUR 219 million in net cash proceeds. This transaction is anticipated to close in two phases by January 2026. Adler's rental portfolio demonstrated a strong like-for-like rental growth of 4.1% year-on-year, with an average rent increase to EUR 7.71 per square meter per month and a low operational vacancy rate of 1.7%. Financially, the group's net rental income slightly decreased by 3% to EUR 155 million for the first nine months of 2024, attributed to past portfolio sales. The adjusted rental EBITDA reached EUR 86 million, while the adjusted total EBITDA was EUR 53 million. The group's total equity strengthened to approximately EUR 2.2 billion, with a reduced loan-to-value (LTV) ratio of 62.6%. Adler completed a comprehensive recapitalization, reducing its nominal debt to EUR 4.7 billion and extending the average debt maturity to 3.8 years. The call concluded with guidance affirming net rental income projections between EUR 200 million and EUR 210 million for 2024, and expectations for stable asset valuations by year-end.

ADLER Group Financial Statement Overview

Summary

ADLER Group's financial performance is severely challenged, with negative profitability metrics, high leverage, and cash flow issues. The income statement shows declining revenues and negative margins, while the balance sheet indicates significant solvency risks. Cash flow performance is weak, with consistent negative free cash flow and operating cash flow.

Income Statement

Negative

The company's income statement highlights significant profitability challenges. Gross and net profit margins have been negative or very low over the past years, reflecting declining profitability. Revenue has decreased over time, with a notable drop from 2020 to the TTM period. EBIT and EBITDA margins are also negative, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

Negative

The balance sheet shows a high degree of leverage, with a debt-to-equity ratio indicating significantly more debt than equity. The equity ratio is low, reflecting minimal equity cushion against the assets. While the company has managed to increase its stockholders' equity in recent periods, the overall financial structure remains risky with potential solvency concerns.

Cash Flow

Negative

Cash flow analysis reveals a negative trend, with consistent negative free cash flow and operating cash flow over the periods reviewed. The company's ability to generate cash from operations is weak, and the free cash flow to net income ratio is concerning, as it indicates that cash generation is not supporting profitability. The operating cash flow to net income ratio also suggests a disconnect between reported earnings and cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	392.19M	445.08M	734.47M	1.14B	758.74M
Gross Profit	69.29M	2.19M	-237.72M	11.77M	204.82M
EBITDA	1.18B	-1.65B	-1.24B	-699.83M	176.73M
Net Income	873.60M	-1.66B	-1.67B	-1.17B	190.80M
Balance Sheet
Total Assets	6.89B	7.72B	9.71B	13.04B	14.84B
Cash, Cash Equivalents and Short-Term Investments	246.99M	377.42M	386.99M	620.60M	399.71M
Total Debt	3.56B	6.08B	5.99B	7.02B	8.00B
Total Liabilities	5.32B	7.67B	7.80B	9.34B	9.92B
Stockholders Equity	1.33B	-228.86M	1.42B	2.99B	4.15B
Cash Flow
Free Cash Flow	-170.50M	-125.91M	-139.44M	-280.19M	112.42M
Operating Cash Flow	-168.51M	-123.56M	-138.22M	-276.24M	120.30M
Investing Cash Flow	34.21M	151.57M	1.53B	1.13B	-178.37M
Financing Cash Flow	30.10M	-57.10M	-1.37B	-677.76M	-136.30M

ADLER Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.23

Price Trends

50DMA

0.22

Positive

100DMA

0.23

Negative

200DMA

0.27

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

53.44

Neutral

STOCH

50.10

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADJ, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.22, and below the 200-day MA of 0.27, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 50.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ADJ.

ADLER Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$7.00B	13.54	-0.52%	7.07%	3.61%	-22.78%
ADJ	42 Neutral	$33.51M	0.04	1236.17%	―	-21.76%	―
0QC9	―	€5.56B	9.17	8.02%	3.65%	―	―
0FJC	―	€652.42M	30.64	2.00%	―	―	―
0JK4	―	€2.99B	10.16	9.17%	―	―	―
GYC	76 Outperform	€1.89B	4.63	11.68%	―	0.19%	―
AT1	70 Outperform	€3.79B	16.78	2.91%	―	-3.28%	―

* Real Estate Sector Average

Performance Comparison

DE:ADJ

ADLER Group

0.23

0.04

22.51%

GB:0QC9

LEG Immobilien

73.94

-9.93

-11.84%

GB:0FJC

Patrizia Immobilien

7.54

-0.05

-0.66%

GB:0JK4

T Immobilien

15.78

1.28

8.83%

DE:AT1

Aroundtown SA

3.28

1.03

45.78%

DE:GYC

Grand City Properties SA

11.24

-1.27

-10.15%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025