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CECONOMY AG (DE:CEC)
XETRA:CEC
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CECONOMY AG (CEC) AI Stock Analysis

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DE:CEC

CECONOMY AG

(XETRA:CEC)

Rating:54Neutral
Price Target:
€4.50
▲(2.27% 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 (CEC) vs. iShares MSCI Germany ETF (EWG)

CECONOMY AG Business Overview & Revenue Model

Company DescriptionCeconomy 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 MoneyCECONOMY 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
45
Neutral
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
40
Negative
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.82B22.44B22.24B21.77B21.36B20.83B
Gross Profit4.09B3.96B3.94B1.71B1.67B1.83B
EBITDA986.00M997.00M806.00M839.00M958.00M1.01B
Net Income3.00M76.00M-39.00M126.00M232.00M-218.00M
Balance Sheet
Total Assets9.94B10.13B9.63B10.00B10.67B10.46B
Cash, Cash Equivalents and Short-Term Investments1.02B1.15B897.00M910.00M1.86B1.64B
Total Debt2.58B2.63B2.58B2.77B2.87B2.42B
Total Liabilities9.42B9.62B9.17B9.41B9.91B9.91B
Stockholders Equity520.00M516.00M463.00M590.00M713.00M487.00M
Cash Flow
Free Cash Flow776.00M645.00M828.00M13.00M309.00M1.05B
Operating Cash Flow982.00M838.00M1.00B219.00M450.00M1.17B
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 Price4.40
Price Trends
50DMA
4.18
Positive
100DMA
3.63
Positive
200DMA
3.33
Positive
Market Momentum
MACD
0.07
Positive
RSI
58.78
Neutral
STOCH
41.27
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 4.4 is below the 20-day moving average (MA) of 4.42, above the 50-day MA of 4.18, and above the 200-day MA of 3.33, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 41.27 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$20.50B14.76-2.72%3.09%1.90%-4.74%
54
Neutral
€2.14B709.680.58%1.07%-97.77%
€2.08B28.18
1.48%
€6.34B23.6910.35%
55
Neutral
€7.16B-32.53%23.23%76.05%
46
Neutral
€1.07B-47.97%3.44%5.93%
42
Neutral
€62.63M-79.00%-13.09%-62.53%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:CEC
CECONOMY AG
4.40
1.84
72.01%
GB:0ENN
HORNBACH Baumarkt
66.00
16.00
32.00%
GB:0QXN
Zalando
24.69
2.59
11.72%
DE:DHER
Delivery Hero SE
25.11
-2.89
-10.32%
DE:MRX
Mister Spex SE
1.69
-0.81
-32.40%
DE:YOU
ABOUT YOU Holding SE
6.74
3.96
142.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025