Metro AG (B4B) AI Stock Analysis

• Market Cap: €1.92B
• Dividend Yield: 10.38%
• Average Volume (3M): 33.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 3.56%
• EPS Growth: -251.30%
• Country: DE
• Employees: 80,951
• Sector: Industrials
• Sector Strength: 90
• Industry: Food Distribution
• EPS (TTM): -0.43
• Shares Outstanding: 360,121,730
• 10 Day Avg. Volume: 16,373
• 30 Day Avg. Volume: 33,762
• PEG Ratio: -0.01
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.89
• 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: 4.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: €5.50 ▲(4.17%Upside)

Metro AG's overall stock score is primarily influenced by its financial performance, which shows stable revenue but profitability and liquidity challenges. Technical analysis adds caution due to mixed signals, while the valuation is supported by a high dividend yield but hampered by a negative P/E ratio. Future improvements in profitability and cash flow are essential for a better outlook.

Metro AG Business Overview & Revenue Model

Company Description

Metro AG is a leading global wholesale company specializing in food and non-food products. Headquartered in Germany, the company operates in the wholesale and food service sectors, catering primarily to hotels, restaurants, catering services, and independent retailers. Metro AG offers a wide range of products including fresh and frozen foods, beverages, and kitchen equipment, providing tailored solutions to meet the diverse needs of its professional customers.

How the Company Makes Money

Metro AG generates revenue primarily through its cash-and-carry wholesale operations, where it sells a variety of food and non-food products to business customers. The company operates a network of wholesale stores globally, allowing professional clients like restaurants, hotels, and small retailers to purchase products in bulk at competitive prices. Key revenue streams include the sale of fresh produce, meat, seafood, dairy, beverages, and non-food items like cleaning supplies and kitchen equipment. Metro AG also engages in strategic partnerships and collaborations with local suppliers and service providers to enhance its product offerings and expand its market reach. Additionally, the company may leverage digital platforms to facilitate online sales and improve customer engagement, contributing to its overall 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: Neutral
• Last Price: 5.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:B4B, the sentiment is Neutral. The current price of 5.28 is below the 20-day moving average (MA) of 5.31, below the 50-day MA of 5.36, and above the 200-day MA of 4.90, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:B4B.

Metro AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBH	79 Outperform	€1.72B	11.36	7.56%	2.32%	1.78%	-1.73%
SIX2	78 Outperform	€4.04B	17.99	12.50%	7.11%	10.10%	-12.20%
GBF	78 Outperform	€3.56B	19.21	14.62%	2.20%	15.42%	-6.80%
Sector *	65 Neutral	$10.94B	15.62	5.18%	2.23%	3.14%	-26.85%
JUN3	65 Neutral	€3.44B	11.91	12.41%	2.44%	-2.78%	-3.44%
B4B	55 Neutral	€1.92B	―	-7.88%	10.38%	3.56%	-251.30%
SZU	53 Neutral	€2.04B	50.64	-8.56%	1.98%	-9.94%	-148.75%