CECONOMY AG (CEC) AI Stock Analysis

• Market Cap: €2.15B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.15
• Revenue Growth: 1.07%
• EPS Growth: -97.77%
• Country: DE
• Employees: 40,990
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Specialty Retail
• EPS (TTM): -0.24
• Shares Outstanding: 485,221,070
• 10 Day Avg. Volume: 1,921,930
• 30 Day Avg. Volume: 1,174,279
• 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: €4.37
• Price Target Upside: -1.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: €4.50 ▲(1.35% Upside)

CECONOMY AG's overall stock score is driven primarily by its financial performance and technical analysis. The financial performance shows moderate health with operational challenges and high leverage concerns. Technical analysis indicates bullish momentum but is tempered by potential overbought conditions. Valuation remains a significant concern due to the negative P/E ratio and lack of dividend yield, suggesting potential overvaluation. The absence of earnings call data and corporate events limits further insights.

CECONOMY AG Business Overview & Revenue Model

Company Description

CECONOMY AG is a leading consumer electronics retailer in Europe, primarily operating through its well-known brands, such as MediaMarkt and Saturn. The company focuses on providing a wide range of electronic products, including home appliances, consumer electronics, and related services. CECONOMY operates both physical retail stores and a robust online presence, catering to a diverse consumer base and offering an extensive selection of products from various manufacturers.

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 demonstrates moderate financial health with mixed performance across its financial statements. The income statement highlights revenue growth and operational efficiency, although profitability remains a challenge. The balance sheet reflects high leverage and limited equity, posing financial risks. Meanwhile, the cash flow statement indicates strong cash generation capabilities despite challenges in free cash flow growth.

Income Statement

CECONOMY AG's income statement reveals moderate performance with mixed profitability metrics. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 17.73%, indicating efficient cost management relative to revenue. The net profit margin is negative at -0.20%, reflecting challenges in achieving profitability. Revenue growth is steady at 2.22% from the previous annual period, suggesting moderate growth. The EBIT margin stands at 1.01%, while the EBITDA margin is healthier at 4.41%, indicating better operational efficiency when accounting for depreciation and amortization.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 4.04 in the TTM, indicating significant leverage which could pose financial risk. Return on equity (ROE) is negative at -7.09%, pointing to challenges in generating returns for shareholders. The equity ratio is relatively low at 6.29%, suggesting limited equity financing compared to total assets. Overall, the balance sheet reflects financial leverage concerns and limited equity.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of -25.43% from the previous annual period, indicating reduced free cash availability. The operating cash flow to net income ratio is favorable at -15.31, showing strong cash generation relative to net income. The free cash flow to net income ratio is -10.69, also highlighting robust cash flow compared to net income, despite the negative net income.

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

CECONOMY AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 4.44 is above the 20-day moving average (MA) of 4.22, above the 50-day MA of 3.74, and above the 200-day MA of 3.21, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 70.68 is Negative, neither overbought nor oversold. The STOCH value of 46.48 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	61 Neutral	€5.97B	22.07	10.35%	―	7.12%	78.28%
CEC	59 Neutral	€2.15B	19.63	-6.95%	―	1.07%	-97.77%
DHER	56 Neutral	€7.05B	―	-41.57%	―	23.67%	63.04%
Sector *	53 Neutral	C$5.41B	6.76	11.95%	3.33%	4.99%	-1.01%
MRX	51 Neutral	€62.97M	―	-77.36%	―	-6.33%	-65.26%
YOU	48 Neutral	€1.07B	―	-47.97%	―	3.44%	5.93%