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ADLER Group (DE:ADJ)
XETRA:ADJ
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ADLER Group
(XETRA:ADJ)
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Rating:41Neutral
Price Target:
€0.00
▼(-100.00% Downside)
The overall stock score for ADLER Group is primarily driven by its poor financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis suggests a bearish trend, and valuation metrics indicate potential undervaluation, but with significant risks. The absence of earnings call data and corporate events limits additional insights.
ADLER Group (ADJ) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$31.08M
Dividend YieldN/A
Average Volume (3M)112.04K
Price to Earnings (P/E)<0.1
Beta (1Y)0.20
Revenue Growth-22.03%
EPS GrowthN/A
CountryDE
Employees478
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-1.25
Shares Outstanding151,626,110
10 Day Avg. Volume92,328
30 Day Avg. Volume112,036
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.04
Price to Sales (P/S)0.13
P/FCF Ratio-0.30
Enterprise Value/Market Cap125.26
Enterprise Value/Revenue11.73
Enterprise Value/Gross Profit-280.03
Enterprise Value/Ebitda3.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
ADLER Group Business Overview & Revenue Model
Company DescriptionAdler Group S.A., together with its subsidiaries, operates as a residential real estate company in Germany. It operates through Residential Property Management and Privatization segments. The company is involved in the rental and management of residential properties, including modernization and maintenance of residential properties, management of tenancy agreements, and marketing of residential units. It also engages in holding, operating, and selling commercial units; and the modernization, maintenance, and management of non-vacant units. The company was formerly known as ADO Properties S.A. and changed its name to Adler Group S.A. in October 2020. The company was founded in 2006 and is based in Senningerberg, Luxembourg.
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 faces significant financial challenges. The income statement reflects declining revenues and negative profitability metrics, while the balance sheet is heavily leveraged, posing potential solvency risks. Cash flow issues further compound the company's financial difficulties, highlighting a need for strategic restructuring to enhance operational efficiency and improve cash generation.Income Statement
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.35
Negative
Balance Sheet
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.40
Negative
Cash Flow
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.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 331.90M | 392.19M | 445.08M | 734.47M | 1.14B | 758.74M |
| Gross Profit | -13.90M | 69.29M | 2.19M | 734.68M | 11.77M | 204.82M |
| EBITDA | 1.28B | 1.18B | -1.65B | -486.81M | -1.04B | 176.73M |
| Net Income | 1.02B | 873.60M | -1.66B | -1.56B | -1.18B | 190.80M |
Balance Sheet | ||||||
| Total Assets | 5.04B | 6.89B | 7.72B | 9.71B | 13.04B | 14.84B |
| Cash, Cash Equivalents and Short-Term Investments | 288.63M | 246.99M | 377.42M | 424.25M | 650.00M | 399.71M |
| Total Debt | 3.42B | 3.56B | 6.08B | 5.99B | 7.02B | 8.00B |
| Total Liabilities | 4.03B | 5.32B | 7.67B | 7.80B | 9.34B | 9.92B |
| Stockholders Equity | 973.80M | 1.33B | -228.86M | 1.42B | 2.99B | 4.15B |
Cash Flow | ||||||
| Free Cash Flow | -127.78M | -170.50M | -125.91M | -139.44M | -280.19M | 112.42M |
| Operating Cash Flow | -122.68M | -168.51M | -123.56M | -138.22M | -276.24M | 120.30M |
| Investing Cash Flow | 347.19M | 34.21M | 154.57M | 1.53B | 1.13B | -178.37M |
| Financing Cash Flow | -352.60M | 30.10M | -205.52M | -1.37B | -677.76M | -136.30M |
ADLER Group Technical Analysis
Negative
0.20
Price Trends
0.21
Negative
0.22
Negative
0.25
Negative
Market Momentum
>-0.01
Positive
45.23
Neutral
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADJ, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ADJ.
ADLER Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €5.06B | 8.33 | 8.02% | 4.01% | 5.99% | ― | |
68 Neutral | €1.83B | 4.54 | 11.68% | ― | 0.19% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | €2.71B | 9.15 | 9.17% | 2.79% | -22.06% | ― | |
64 Neutral | €3.42B | 4.76 | 9.56% | ― | -1.82% | ― | |
60 Neutral | €615.50M | 28.42 | 2.00% | 4.73% | -9.25% | ― | |
41 Neutral | $31.08M | 0.03 | 1236.17% | ― | -22.03% | ― |
* Real Estate Sector Average
DE:ADJ
ADLER Group
0.20
-0.10
-34.21%
DE:LEG
LEG Immobilien
67.25
-20.29
-23.18%
DE:PAT
Patrizia Immobilien
7.40
-1.08
-12.76%
DE:TEG
T Immobilien
14.57
-0.93
-5.99%
DE:AT1
Aroundtown SA
3.16
0.37
13.26%
DE:GYC
Grand City Properties SA
11.06
-1.61
-12.71%
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.