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): 0.90
• Revenue Growth: 2.81%
• EPS Growth: -146.04%
• Country: DE
• Employees: 40,990
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Retail
• EPS (TTM): 0.36
• 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: 52 Neutral
• Price Target: €4.50 ▲(0.90% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily driven by strong revenue momentum and robust operating/free cash flow, but is held back by very high leverage, thin operating profitability, and loss-linked valuation signals (negative P/E). Technicals are broadly neutral and do not materially improve the outlook.

Positive Factors

Solid Revenue Growth

Sustained TTM revenue growth of ~15.6% indicates expanding demand and successful market positioning. Over a 2–6 month horizon this supports scale benefits, bargaining power with suppliers, and the ability to fund investments in omnichannel capabilities even if near-term margins remain compressed.

Robust Cash Generation

Consistent positive operating and free cash flow provides durable financial flexibility despite weak reported earnings. This cash conversion supports capex, working-capital management, and the potential to reduce leverage or fund strategic initiatives without relying solely on external capital.

Leading Omnichannel Market Position

Well-known brands and a broad omnichannel footprint (stores plus e-commerce) create structural advantages in customer reach, fulfilment options and supplier access. This entrenched market position improves resilience vs pure-play competitors and supports long-term revenue diversification.

Negative Factors

Very High Leverage

Debt-to-equity around 5.2x materially constrains financial flexibility and increases refinancing and interest-rate risk. Over months this limits the company’s ability to invest, pursue M&A, or absorb demand shocks, and makes capital structure repair a priority before growth initiatives.

Thin Profitability Margins

Very slim gross and operating margins leave little room to absorb cost inflation, price competition, or promotional pressure. Structurally low margin conversion makes earnings volatile relative to revenue and hampers the firm's ability to rebuild retained earnings or improve ROE without margin uplift.

Near-Breakeven Net Income & Negative ROE

Net income near zero and negative return on equity reduce internal capital generation and impair the company’s ability to deleverage organically. Persistent low or negative profitability can erode stakeholder confidence and limit funding options for strategic investments.

CECONOMY AG Business Overview & Revenue Model

Company Description

Ceconomy AG engages in the consumer electronics retail business. The company operates approximately 850 stores in 14 countries under the MediaMarkt brand; and approximately 170 stores in 3 countries under the Saturn brand. It also operates Flip4New for selling used electronic articles online. In addition, the company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. The company is based in Düsseldorf, Germany.

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

Revenue growth is strong (+15.6% TTM) and cash generation is solid (TTM operating cash flow €863m; free cash flow €687m). However, profitability is very thin (gross margin ~15.1%, operating margin ~0.8%) with roughly breakeven/slightly negative net income, and the balance sheet is a major constraint with very high leverage (~5.2x debt-to-equity) and negative ROE.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly (+15.6%), but profitability is thin: gross margin is ~15.1% and operating profit is ~0.8% of sales. Net income is roughly breakeven (slightly negative), and margins have generally compressed versus 2024 (higher gross and operating margins), highlighting a volume-led recovery with limited earnings conversion.

Balance Sheet

Leverage is the main constraint: debt is ~5.2x equity (TTM), with a relatively small equity base versus the asset footprint. Returns on equity are negative in TTM (and were also negative in 2023/2025 annual), signaling inconsistent profitability and limited balance-sheet resilience if trading conditions weaken.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow (€863m) and free cash flow (€687m) are solid and have been consistently positive in recent years, even when net income was weak. The main watch-out is volatility in free-cash-flow growth (TTM down ~15% after stronger periods), suggesting working-capital and investment swings typical for retail.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	23.11B	23.07B	22.44B	22.24B	21.77B	21.36B
Gross Profit	3.35B	3.48B	3.96B	3.94B	1.71B	1.67B
EBITDA	824.00M	857.00M	997.00M	958.00M	839.00M	958.00M
Net Income	-2.00M	-35.00M	76.00M	-39.00M	126.00M	232.00M
Balance Sheet
Total Assets	12.90B	10.79B	10.13B	9.63B	10.00B	10.67B
Cash, Cash Equivalents and Short-Term Investments	2.58B	1.21B	1.15B	897.00M	910.00M	1.86B
Total Debt	2.57B	2.54B	2.63B	2.58B	2.77B	2.87B
Total Liabilities	12.23B	10.30B	9.62B	9.17B	9.41B	9.91B
Stockholders Equity	671.00M	486.00M	516.00M	463.00M	590.00M	713.00M
Cash Flow
Free Cash Flow	687.00M	689.00M	645.00M	828.00M	13.00M	309.00M
Operating Cash Flow	863.00M	879.00M	838.00M	1.00B	219.00M	450.00M
Investing Cash Flow	-177.00M	-202.00M	-162.00M	-236.00M	-65.00M	-263.00M
Financing Cash Flow	-525.00M	-469.00M	-585.00M	-649.00M	-905.00M	-77.00M

CECONOMY AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 4.46 is above the 20-day moving average (MA) of 4.41, above the 50-day MA of 4.43, and above the 200-day MA of 4.12, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:CEC.

CECONOMY AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ZAL	61 Neutral	€5.49B	22.63	9.04%	―	12.06%	18.20%
CEC	52 Neutral	€2.16B	-1,078.05	-6.99%	―	2.81%	-146.04%
DHER	50 Neutral	€6.47B	-10.69	-32.53%	―	23.23%	76.05%
MRX	44 Neutral	€45.10M	-0.65	-75.59%	―	-16.95%	-24.45%