Deutsche Boerse (DB1) AI Stock Analysis

• Market Cap: €39.80B
• Dividend Yield: 1.8%
• Average Volume (3M): 389.02K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.54
• Revenue Growth: 9.07%
• EPS Growth: 10.34%
• Country: DE
• Employees: 14,515
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.78
• Shares Outstanding: 188,300,000
• 10 Day Avg. Volume: 317,311
• 30 Day Avg. Volume: 389,018
• PEG Ratio: 1.57
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 5.82
• P/FCF Ratio: 19.94
• 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: €260.33
• Price Target Upside: 17.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €260.00 ▲(16.96% Upside)

Deutsche Boerse's strong financial performance, characterized by robust revenue and profit growth, is the most significant factor contributing to its score. The technical analysis indicates potential overbought conditions, which could limit short-term upside. The valuation is reasonable, with a moderate P/E ratio and a modest dividend yield, making it attractive for long-term investors. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates a strong market position and effective business model, supporting long-term expansion and profitability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and debt management, supporting sustainable growth.

Operational Efficiency

High operational efficiency reflects effective cost management and strong profitability, ensuring competitive advantage and resilience in market fluctuations.

Negative Factors

Rising Leverage

Increased leverage can heighten financial risk, potentially impacting financial stability and limiting future borrowing capacity.

Return on Equity Pressure

A decrease in return on equity could indicate challenges in maximizing shareholder returns, affecting investor confidence over time.

Investing and Financing Cash Flow Fluctuations

Volatility in cash flows related to investing and financing may signal uncertainties in capital deployment strategies, impacting long-term growth potential.

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 Börse generates revenue through multiple key streams. Primarily, it earns money from trading fees charged for transactions conducted on its exchanges, including equities, bonds, and derivatives. Additionally, the company derives significant income from clearing and settlement services through its Clearstream division, which charges fees for the custody and administration of securities. Market data services also contribute to revenue by providing pricing and analytical information to financial institutions and investors. Partnerships with financial institutions and the integration of technology to enhance trading capabilities further bolster its earnings. The company's diversified business model, which includes services for both retail and institutional investors, ensures a stable revenue base and growth opportunities in the evolving financial landscape.

Deutsche Boerse Financial Statement Overview

Summary

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.23B	7.02B	6.10B	5.23B	4.36B	3.72B
Gross Profit	3.92B	4.10B	3.61B	4.23B	2.25B	2.10B
EBITDA	3.46B	3.42B	2.98B	2.57B	2.07B	1.89B
Net Income	1.99B	1.95B	1.72B	1.49B	1.21B	1.08B
Balance Sheet
Total Assets	294.27B	222.40B	237.73B	269.11B	222.92B	152.68B
Cash, Cash Equivalents and Short-Term Investments	216.52B	130.41B	140.50B	138.23B	110.97B	90.87B
Total Debt	0.00	9.58B	8.72B	5.36B	6.32B	4.80B
Total Liabilities	283.25B	210.85B	227.63B	260.05B	215.18B	146.12B
Stockholders Equity	10.56B	10.77B	9.66B	8.47B	7.19B	6.17B
Cash Flow
Free Cash Flow	0.00	2.05B	2.28B	2.16B	702.50M	1.22B
Operating Cash Flow	0.00	2.41B	2.55B	2.48B	908.90M	1.41B
Investing Cash Flow	0.00	-60.00M	-4.00B	-1.41B	-2.17B	-787.70M
Financing Cash Flow	0.00	-1.35B	2.29B	-951.10M	798.70M	-254.20M

Deutsche Boerse Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 222.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DB1, the sentiment is Neutral. The current price of 222.3 is above the 20-day moving average (MA) of 216.17, above the 50-day MA of 220.80, and below the 200-day MA of 252.68, indicating a neutral trend. The MACD of 1.32 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 40.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DB1.

Deutsche Boerse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWB	77 Outperform	€312.96M	6.54	24.12%	1.90%	15.69%	268.17%
FTK	76 Outperform	€3.62B	27.28	17.14%	0.13%	16.56%	17.76%
DB1	76 Outperform	€39.80B	20.26	19.61%	1.80%	9.07%	10.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SB1	53 Neutral	€239.13M	-51.44	-10.06%	―	21.89%	29.26%