Deutsche Boerse (DB1) AI Stock Analysis

• Market Cap: €53.04B
• Dividend Yield: 1.31%
• Average Volume (3M): 579.86K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.58
• Revenue Growth: 14.88%
• EPS Growth: 13.32%
• Country: DE
• Employees: 14,515
• Sector: Financial
• Sector Strength: 88
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 3.05
• Shares Outstanding: 188,300,000
• 10 Day Avg. Volume: 516,995
• 30 Day Avg. Volume: 579,864
• PEG Ratio: 17.83
• Price to Book (P/B): 4.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.37
• 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: €273.77
• Price Target Upside: -5.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Deutsche Boerse's strong financial performance is a key driver of its stock appeal, despite increased leverage risks. The stock is currently experiencing downward pressure as indicated by technical analysis, which suggests caution. Although the valuation is slightly high, it reflects moderate growth expectations. Overall, Deutsche Boerse is a stable company with solid fundamentals, but investors should be mindful of current market trends and leverage management.

Deutsche Boerse Business Overview & Revenue Model

Company Description

Deutsche Börse AG operates as an exchange organization in Europe, the United States, and the Asia-Pacific. The company operates through seven segments: Eurex (Financial Derivatives), EEX (Commodities), 360T (Foreign Exchange), Xetra (Cash Equities), Clearstream (Post-Trading), IFS (Investment Fund Services), and Qontigo (index and analytics business). The company engages in the electronic trading of derivatives, electricity and gas products, emission rights, and foreign exchange; operating of Eurex Repo over the counter (OTC) trading platform and electronic clearing architecture; and operating as a central counterparty for on-and-off exchange derivatives, repo transactions, and OTC and exchange-traded derivatives. It also operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; operates as a central counterparty for equities and bonds; and provides listing services. In addition, the company offers custody and settlement services for securities; investment fund services; global securities financing services; and collateral management, as well as secured money, market transaction, and repos and securities lending transaction services. Further, it develops and markets indices, as well as portfolio management and risk analysis software; markets licenses for trading and market signals; provides technology and reporting solutions for external customers; and offers link-up of trading participants. Deutsche Börse AG was founded in 1585 and is headquartered in Eschborn, Germany.

How the Company Makes Money

Deutsche Boerse generates revenue through several key streams, primarily from trading and clearing services, listing fees, and market data sales. Its trading segment earns fees from executing trades on its various platforms, such as Xetra and Eurex. The clearing and settlement services add another layer of income by ensuring the completion of transactions and reducing counterparty risk. Additionally, Deutsche Boerse charges listing fees for companies that wish to list their shares on its exchanges. Furthermore, the company sells real-time and historical market data to financial institutions, providing them with critical information for decision-making. Deutsche Boerse's partnerships with financial technology firms and acquisitions of related businesses further enhance its revenue potential by expanding its product offerings and market reach.

Deutsche Boerse Financial Statement Overview

Summary

Deutsche Boerse exhibits a strong financial performance with significant revenue and profit growth, efficient operational margins, and robust cash flow generation. The company's balance sheet is stable, though increased leverage may pose risks. Overall, Deutsche Boerse is well-positioned in the capital markets industry, with a solid growth trajectory and profitability, but it should monitor leverage to maintain financial stability.

Income Statement

Deutsche Boerse has demonstrated strong revenue growth with a notable increase from €3.3 billion in 2019 to €7.0 billion in 2024. Gross profit margin has remained robust, averaging around 58% over the years. The net profit margin improved from 30% in 2019 to 28% in 2024, reflecting efficient cost management. The EBIT and EBITDA margins are also strong, consistently above 40%, indicating operational efficiency and profitability. Overall, the income statement shows a positive growth trajectory and strong profitability metrics.

Balance Sheet

The balance sheet of Deutsche Boerse reflects a stable financial position with a consistent increase in stockholders' equity from €5.7 billion in 2019 to €10.5 billion in 2024. However, the debt-to-equity ratio has increased due to rising total debt, indicating higher leverage. The equity ratio has improved moderately, suggesting a growing asset base supported by equity. Return on equity has decreased slightly, indicating potential pressure on shareholder returns. While the company maintains a solid asset base, the increasing leverage poses a potential risk.

Cash Flow

Deutsche Boerse's cash flow statement highlights strong operating cash flows, with a notable increase in free cash flow from €741 million in 2019 to €2.05 billion in 2024. The free cash flow growth rate is positive, indicating efficient cash generation beyond operational needs. The operating cash flow to net income ratio remains healthy, reflecting strong cash conversion. The free cash flow to net income ratio is also favorable, suggesting solid cash profitability. Nevertheless, fluctuations in investing and financing cash flows imply strategic capital allocation and debt management challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.02B	6.10B	5.23B	4.36B	3.72B
	Gross Profit
4.10B	3.61B	2.85B	2.25B	2.10B
	EBIT
2.87B	3.37B	2.12B	1.74B	1.60B
	EBITDA
3.03B	3.01B	2.47B	2.03B	1.87B
	Net Income Common Stockholders
1.95B	1.72B	1.49B	1.21B	1.08B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.41B	140.50B	138.23B	110.97B	90.94B
	Total Assets
222.40B	237.73B	269.11B	222.92B	152.77B
	Total Debt
9.58B	8.72B	5.36B	6.32B	4.80B
	Net Debt
7.18B	7.07B	3.26B	3.39B	1.08B
	Total Liabilities
210.85B	227.63B	260.05B	215.18B	146.21B
	Stockholders Equity
10.77B	9.66B	8.47B	7.19B	6.17B
Cash Flow		Free Cash Flow
2.05B	2.28B	2.16B	702.50M	1.22B
	Operating Cash Flow
2.41B	2.55B	2.48B	908.90M	1.41B
	Investing Cash Flow
-60.00M	-4.00B	-1.41B	-2.17B	-787.70M
	Financing Cash Flow
-1.30B	2.29B	-951.10M	798.70M	-254.20M

Deutsche Boerse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 289.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DB1, the sentiment is Positive. The current price of 289.1 is above the 20-day moving average (MA) of 277.74, above the 50-day MA of 269.33, and above the 200-day MA of 229.43, indicating a bullish trend. The MACD of 6.74 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 83.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DB1.

Deutsche Boerse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB1	74 Outperform	€53.04B	27.64	19.07%	1.31%	14.88%	13.32%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%