CECONOMY AG (CEC) AI Stock Analysis

• Market Cap: €2.16B
• Dividend Yield: N/A
• Average Volume (3M): 484.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: 2.81%
• EPS Growth: -146.04%
• Country: DE
• Employees: 40,990
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Retail
• EPS (TTM): -0.05
• Shares Outstanding: 485,221,070
• 10 Day Avg. Volume: 558,223
• 30 Day Avg. Volume: 484,242
• PEG Ratio: 0.42
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 3.09
• 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: €4.60
• Price Target Upside: 3.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €4.50 ▲(0.90% Upside)

CECONOMY AG's overall stock score is primarily impacted by its financial performance, which shows stable revenue growth but significant profitability challenges and high leverage. Technical analysis indicates a neutral trend with weak momentum. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest a cautious outlook for the stock.

Positive Factors

Revenue Growth

Stable revenue growth indicates consistent demand for CECONOMY's products and services, supporting long-term business sustainability and market presence.

Cash Flow from Operations

Strong cash conversion from operations suggests efficient management and the ability to fund operations and investments without relying heavily on external financing.

Operational Efficiency

Improved EBIT and EBITDA margins indicate enhanced operational efficiency, which can lead to better profitability and competitive positioning over time.

Negative Factors

Profitability Challenges

Negative net profit margin highlights ongoing profitability challenges, which may hinder reinvestment in growth initiatives and impact long-term financial health.

High Leverage

High leverage poses financial risks and limits flexibility, potentially affecting the company's ability to navigate economic downturns or invest in growth opportunities.

Declining Free Cash Flow

A decline in free cash flow generation can constrain the company's ability to fund new projects, pay down debt, or return capital to shareholders, impacting long-term growth prospects.

CECONOMY AG Business Overview & Revenue Model

Company Description

CECONOMY AG is a leading European consumer electronics retailer headquartered in Düsseldorf, Germany. The company operates through various well-known brands, including MediaMarkt and Saturn, and focuses on providing a wide range of consumer electronics, appliances, and related services. CECONOMY AG is involved in both online and offline retail, offering customers access to the latest technology products, including smartphones, computers, home appliances, and entertainment systems, along with additional services such as installation and repair.

How the Company Makes Money

CECONOMY AG primarily generates revenue through the sale of consumer electronics and appliances across its retail network. The company's revenue model is based on product sales, which includes both in-store and online transactions. Key revenue streams consist of direct sales of electronics and appliances, as well as ancillary services like delivery, installation, and warranty services. Additionally, CECONOMY benefits from partnerships with various technology manufacturers and brands, allowing them to offer exclusive products and promotions. The company's ability to adapt to e-commerce trends and expand its online presence also contributes significantly to its earnings, as more consumers shift towards online shopping. Seasonal promotions and special sales events further enhance revenue generation during peak shopping periods.

CECONOMY AG Financial Statement Overview

Summary

CECONOMY AG demonstrates stable revenue growth but faces profitability challenges, as evidenced by negative net income and declining gross profit margins. The high debt-to-equity ratio indicates significant leverage, posing financial risks. While cash flow from operations is strong, the decline in free cash flow growth suggests areas for improvement. Overall, the company needs to focus on enhancing profitability and managing leverage to strengthen its financial position.

Income Statement

CECONOMY AG shows a modest revenue growth rate of 1.08% in the latest year, indicating a stable but slow growth trajectory. The gross profit margin has decreased from previous years, reflecting potential challenges in cost management. The net profit margin has turned negative, highlighting profitability issues. Despite these challenges, the EBIT and EBITDA margins have improved slightly, suggesting some operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio remains high at 5.22, indicating significant leverage and potential financial risk. The return on equity has turned negative, reflecting challenges in generating returns for shareholders. The equity ratio is relatively low, suggesting limited financial stability. Overall, the balance sheet shows a need for improved financial management to enhance stability.

Cash Flow

CECONOMY AG's free cash flow has decreased by 11.21%, indicating potential challenges in cash generation. The operating cash flow to net income ratio is strong, suggesting good cash conversion from operations. However, the free cash flow to net income ratio is negative due to the net loss, highlighting profitability issues. Overall, the cash flow position is stable but requires attention to improve free cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.07B	23.07B	22.44B	22.24B	21.77B	21.36B
Gross Profit	3.48B	3.48B	3.96B	3.94B	1.71B	1.67B
EBITDA	857.00M	857.00M	997.00M	958.00M	839.00M	958.00M
Net Income	-35.00M	-35.00M	76.00M	-39.00M	126.00M	232.00M
Balance Sheet
Total Assets	10.79B	10.79B	10.13B	9.63B	10.00B	10.67B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.21B	1.15B	897.00M	910.00M	1.86B
Total Debt	2.54B	2.54B	2.63B	2.58B	2.77B	2.87B
Total Liabilities	10.30B	10.30B	9.62B	9.17B	9.41B	9.91B
Stockholders Equity	486.00M	486.00M	516.00M	463.00M	590.00M	713.00M
Cash Flow
Free Cash Flow	811.00M	689.00M	645.00M	828.00M	13.00M	309.00M
Operating Cash Flow	1.00B	879.00M	838.00M	1.00B	219.00M	450.00M
Investing Cash Flow	-175.00M	-202.00M	-162.00M	-236.00M	-65.00M	-263.00M
Financing Cash Flow	-581.00M	-469.00M	-585.00M	-649.00M	-905.00M	-77.00M

CECONOMY AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.46
• 50DMA: Positive
• 100DMA: Positive
• 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:CEC, the sentiment is Positive. The current price of 4.46 is above the 20-day moving average (MA) of 4.44, above the 50-day MA of 4.43, and above the 200-day MA of 3.88, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.70 is Neutral, neither overbought nor oversold. The STOCH value of 56.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:CEC.

CECONOMY AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZAL	63 Neutral	€6.49B	27.20	9.04%	―	12.06%	18.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CEC	54 Neutral	€2.16B	-62.27	-6.99%	―	2.81%	-146.04%
DHER	50 Neutral	€6.59B	-11.73	-32.53%	―	23.23%	76.05%
YOU	45 Neutral	€1.06B	-10.89	―	―	3.44%	5.93%
MRX	44 Neutral	€42.72M	-0.64	-75.59%	―	-16.95%	-24.45%