CECONOMY AG (CEC) AI Stock Analysis

• Market Cap: €2.13B
• Dividend Yield: N/A
• Average Volume (3M): 713.36K
• Price to Earnings (P/E): 705.6
• Beta (1Y): 1.10
• Revenue Growth: 1.07%
• EPS Growth: -97.77%
• Country: DE
• Employees: 40,990
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Retail
• EPS (TTM): -0.24
• Shares Outstanding: 485,221,070
• 10 Day Avg. Volume: 500,897
• 30 Day Avg. Volume: 713,358
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 5.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: €4.50 ▲(2.74% Upside)

CECONOMY AG's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high leverage. Despite positive technical indicators suggesting bullish momentum, the extremely high P/E ratio indicates potential overvaluation, which weighs down the overall score.

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 generates revenue primarily through the sale of consumer electronics and appliances in its retail stores and online platforms. Key revenue streams include direct product sales, warranty extensions, and service contracts. The company benefits from significant partnerships with leading electronics manufacturers, allowing it to offer a comprehensive range of products. Additionally, CECONOMY earns revenue through its e-commerce operations, which have become increasingly important, especially in response to changing consumer shopping behaviors. The firm also implements promotional strategies and loyalty programs that encourage repeat business and enhance customer retention.

CECONOMY AG Financial Statement Overview

Summary

CECONOMY AG's financial performance is challenged by a significant revenue decline of 50.1% and negative net profit margin, indicating profitability issues. High leverage with a debt-to-equity ratio of 4.04 adds financial risk. However, cash flow shows some strength with a 61.3% growth in free cash flow.

Income Statement

CECONOMY AG's income statement shows a mixed performance. The company has experienced a significant revenue decline of 50.1% in the TTM period, which is concerning. Gross profit margin remains stable at around 17.7%, but net profit margin has turned negative, indicating profitability issues. The EBIT and EBITDA margins are low, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 4.04, indicating significant financial risk. Return on equity is negative, reflecting poor profitability relative to shareholder investment. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Cash flow analysis shows a positive trend with a 61.3% growth in free cash flow in the TTM period. However, the operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio is relatively healthy, suggesting some efficiency in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.82B	22.44B	22.24B	21.77B	21.36B	20.83B
Gross Profit	4.09B	3.96B	3.94B	1.71B	1.67B	1.83B
EBITDA	986.00M	997.00M	806.00M	839.00M	958.00M	1.01B
Net Income	3.00M	76.00M	-39.00M	126.00M	232.00M	-218.00M
Balance Sheet
Total Assets	9.94B	10.13B	9.63B	10.00B	10.67B	10.46B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.15B	897.00M	910.00M	1.86B	1.64B
Total Debt	2.58B	2.63B	2.58B	2.77B	2.87B	2.42B
Total Liabilities	9.42B	9.62B	9.17B	9.41B	9.91B	9.91B
Stockholders Equity	520.00M	516.00M	463.00M	590.00M	713.00M	487.00M
Cash Flow
Free Cash Flow	776.00M	645.00M	828.00M	13.00M	309.00M	1.05B
Operating Cash Flow	982.00M	838.00M	1.00B	219.00M	450.00M	1.17B
Investing Cash Flow	-177.00M	-162.00M	-236.00M	-65.00M	-263.00M	-248.00M
Financing Cash Flow	-585.00M	-585.00M	-649.00M	-905.00M	-77.00M	-589.00M

CECONOMY AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.38
• 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 4.38 is below the 20-day moving average (MA) of 4.41, above the 50-day MA of 4.35, and above the 200-day MA of 3.43, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.11 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 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	62 Neutral	7.12B	25.86	9.70%	―	7.12%	78.28%
CEC	54 Neutral	€2.13B	705.65	0.58%	―	1.07%	-97.77%
DHER	51 Neutral	7.67B	-12.98	-25.53%	―	23.23%	76.05%
YOU	45 Neutral	1.06B	-10.88	-60.05%	―	3.44%	5.93%
MRX	42 Neutral	56.34M	-0.73	-118.13%	―	-13.09%	-62.53%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%