Metro AG (B4B) AI Stock Analysis

• Market Cap: €1.94B
• Dividend Yield: N/A
• Average Volume (3M): 24.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 3.68%
• EPS Growth: 1.52%
• Country: DE
• Employees: 80,951
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Food Distribution
• EPS (TTM): -0.12
• Shares Outstanding: 360,121,730
• 10 Day Avg. Volume: 11,839
• 30 Day Avg. Volume: 24,560
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €5.50
• Price Target Upside: 3.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: €5.50 ▲(3.19% Upside)

Metro AG's overall stock score reflects moderate financial performance with stable revenue but profitability challenges. Technical analysis shows mixed signals with weak momentum. The valuation is a concern due to a negative P/E ratio and lack of dividend yield. These factors combined result in a cautious outlook for the stock.

Metro AG Business Overview & Revenue Model

Company Description

Metro AG (B4B) is a leading international wholesale and retail company headquartered in Düsseldorf, Germany. The company primarily operates in the food and non-food sectors, offering a wide range of products including groceries, electronics, household goods, and other consumer products. Metro AG serves various customer segments, including restaurants, hotels, catering businesses, and retail outlets, by providing bulk purchasing options and tailored solutions to meet the needs of business clients.

How the Company Makes Money

Metro AG generates revenue primarily through its wholesale operations, where it sells a diverse array of products directly to business customers, including foodservice companies and independent retailers. The company's revenue model is built on selling products at competitive prices, often in bulk, which allows businesses to save costs. Key revenue streams include sales from its cash-and-carry stores, e-commerce platforms, and delivery services. Additionally, Metro AG benefits from strategic partnerships with suppliers and manufacturers, enabling it to offer exclusive products and pricing. The company's focus on enhancing customer loyalty through membership programs and tailored services also contributes significantly to its earnings.

Metro AG Financial Statement Overview

Summary

Metro AG's financial health shows a company in transition. The income statement indicates stable revenue with challenges in profitability. The balance sheet reflects improved leverage with no current debt, enhancing stability. Cash flow statements highlight strong cash generation but reveal concerns over declining free cash flow. Addressing profitability and cash flow stability will be key to future growth.

Income Statement

The income statement reveals a moderate performance with a gross profit margin of 16.25% for TTM, which is healthy in the food distribution industry. However, the company has faced challenges in profitability, with a negative net profit margin of -0.56% in TTM and declining EBIT and EBITDA margins, indicating operational inefficiencies. Revenue growth from the previous year's annual report was moderate at 1.56%, but the recent TTM data shows a slight improvement in total revenue.

Balance Sheet

Metro AG's balance sheet shows a solid equity ratio of 14.14% for TTM, indicating a stable capital structure. The debt-to-equity ratio has significantly improved as total debt was reduced to zero in the latest TTM, reducing financial risk. However, the return on equity is negative at -9.95% in TTM due to negative net income, signaling profitability issues.

Cash Flow

The cash flow statement presents a mixed view. The operating cash flow to net income ratio of -4.29 in TTM suggests strong cash generation relative to net income, though free cash flow has decreased. Free cash flow growth is negative at -47.22% over the previous annual report, pointing to potential liquidity management issues. Despite this, the company has maintained a positive free cash flow to net income ratio of -2.11 in TTM.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	31.49B	31.03B	30.55B	29.75B	24.77B	25.63B
Gross Profit	5.12B	5.05B	4.88B	5.04B	4.23B	4.36B
EBITDA	929.00M	1.07B	1.75B	1.13B	974.00M	956.00M
Net Income	-175.00M	-120.00M	439.00M	-330.00M	-45.00M	-140.00M
Balance Sheet
Total Assets	12.43B	11.74B	11.65B	12.86B	12.82B	13.19B
Cash, Cash Equivalents and Short-Term Investments	1.63B	985.00M	591.00M	1.11B	1.70B	1.77B
Total Debt	0.00	4.02B	3.66B	4.13B	4.95B	5.31B
Total Liabilities	10.67B	10.07B	9.63B	10.49B	10.97B	11.13B
Stockholders Equity	1.76B	1.67B	2.01B	2.34B	1.83B	2.05B
Cash Flow
Free Cash Flow	370.00M	701.00M	332.00M	668.00M	1.05B	951.00M
Operating Cash Flow	751.00M	1.08B	721.00M	931.00M	1.24B	1.21B
Investing Cash Flow	-533.00M	-221.00M	-46.00M	-320.00M	-137.00M	46.00M
Financing Cash Flow	189.00M	-625.00M	-820.00M	-1.31B	-1.15B	-1.53B

Metro AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:B4B, the sentiment is Negative. The current price of 5.33 is below the 20-day moving average (MA) of 5.36, below the 50-day MA of 5.34, and above the 200-day MA of 5.02, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:B4B.

Metro AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$20.41B	14.67	-2.93%	3.10%	2.04%	-6.12%
B4B	54 Neutral	€1.94B	―	-11.25%	―	3.68%	1.52%
0NRG	―	€3.28B	17.45	15.17%	―	―	―
0EXP	―	€3.07B	10.76	11.92%	―	―	―
0NW7	―	€3.56B	13.53	14.91%	―	―	―
0G7B	―	€2.05B	51.85	-8.56%	―	―	―
0RC9	―	€1.70B	10.77	7.56%	―	―	―