Deutsche Euroshop (DEQ) AI Stock Analysis

• Market Cap: €1.46B
• Dividend Yield: 28.14%
• Average Volume (3M): 11.59K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.32
• Revenue Growth: -6.87%
• EPS Growth: N/A
• Country: DE
• Employees: 7
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.31
• Shares Outstanding: 75,743,850
• 10 Day Avg. Volume: 8,186
• 30 Day Avg. Volume: 11,591
• PEG Ratio: -0.03
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 5.19
• P/FCF Ratio: 8.77
• 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: €21.43
• Price Target Upside: 11.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €21.00 ▲(9.03% Upside)

The score is driven primarily by solid financial performance (strong margins and cash conversion) tempered by revenue contraction and higher leverage. Valuation is supportive due to the low P/E and very high dividend yield, while technicals show modestly positive momentum without extreme conditions.

Positive Factors

Strong Cash Flow Management

Strong free cash flow generation indicates effective cash management, providing the company with flexibility to invest in growth opportunities and weather economic fluctuations.

High-Quality Property Portfolio

A high-quality property portfolio in prime locations ensures high occupancy rates and stable rental income, supporting long-term revenue stability and growth.

Healthy Equity Position

A healthy equity position with balanced leverage provides financial stability, reducing risk and enabling the company to capitalize on future investment opportunities.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining market demand or pricing power, which could impact long-term profitability if not addressed.

Zero EBIT

Zero EBIT reflects operational difficulties, potentially due to rising costs or inefficiencies, which could hinder future profit generation and require strategic adjustments.

Fluctuating Free Cash Flow Growth

Volatility in free cash flow growth suggests inconsistency in capital expenditures and financing activities, which could impact the company's ability to plan and invest strategically.

Deutsche Euroshop Business Overview & Revenue Model

Company Description

Deutsche EuroShop AG is a German-based international real estate investment company headquartered in Hamburg. It is the largest German investor in shopping centers, and the country's only publicly traded company to do so exclusively. At the end of 2010 the firm held investments in 18 properties, of which 14 were in Germany, two in Poland and one each in Austria and Hungary.

How the Company Makes Money

Deutsche Euroshop generates revenue primarily through leasing retail spaces to various tenants, including well-known international and local brands. The company earns rental income, which is a significant component of its revenue model, driven by long-term lease agreements with these tenants. Additionally, DEQ benefits from service charges and additional revenues from property management services. The company uses a strategic approach to maintain high occupancy rates in its properties, which in turn contributes to stable cash flows. Partnerships with retailers and brands are crucial in attracting customers to their centers, enhancing tenant performance, and ensuring a steady income stream. Furthermore, DEQ's investment strategy focuses on acquiring and developing prime retail locations, which can appreciate in value, adding to its overall earnings potential.

Deutsche Euroshop Financial Statement Overview

Summary

Strong profitability and high cash conversion support earnings quality, but the sharp recent revenue decline, historical volatility in results, and rising leverage meaningfully raise risk.

Income Statement

Profitability has rebounded strongly in the most recent periods: TTM (Trailing-Twelve-Months) net margin is ~49.7% (vs. ~45.5% in 2024), and gross profitability remains very high (~80%+). However, revenue has recently contracted sharply (TTM revenue growth of -38.5%) after being broadly flat in 2024, and results have shown volatility across the cycle (notably losses in 2020 and 2023). Overall: excellent margins but uneven top-line momentum and earnings stability.

Balance Sheet

Leverage is meaningful and trending higher: debt-to-equity rose to ~1.18 in TTM (Trailing-Twelve-Months) from ~0.96 in 2024, with total debt increasing as equity declined. Returns on equity improved to ~7.3% TTM after negative levels in 2023, but the balance sheet still reflects a more levered profile that can amplify risk in weaker operating environments. Overall: improving returns, but rising leverage is a key watch item.

Cash Flow

Cash generation is solid and closely tracks reported profits: free cash flow is essentially in line with net income (near 1.0x), and operating cash flow is more than double reported earnings in recent periods (coverage ~2.23x TTM (Trailing-Twelve-Months)). The main weakness is the sharp deterioration in free cash flow growth in TTM (Trailing-Twelve-Months) (-6.74) versus near-flat growth in 2024, indicating reduced cash momentum. Overall: strong cash conversion, but recent growth/trajectory is negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	270.98M	271.40M	273.30M	212.81M	211.75M	224.10M
Gross Profit	217.09M	225.15M	223.76M	175.60M	179.21M	195.82M
EBITDA	221.93M	199.29M	3.70M	60.09M	110.06M	-258.90M
Net Income	134.57M	123.51M	-38.28M	21.36M	59.95M	-251.72M
Balance Sheet
Total Assets	4.55B	4.36B	4.46B	4.21B	4.28B	4.24B
Cash, Cash Equivalents and Short-Term Investments	376.03M	216.34M	336.07M	338.28M	332.76M	266.03M
Total Debt	2.10B	1.81B	1.68B	1.48B	1.50B	1.54B
Total Liabilities	2.77B	2.48B	2.34B	2.17B	2.22B	2.23B
Stockholders Equity	1.78B	1.88B	2.12B	2.04B	2.06B	2.00B
Cash Flow
Free Cash Flow	138.15M	160.42M	175.05M	140.61M	130.21M	111.08M
Operating Cash Flow	138.21M	160.43M	175.06M	140.63M	130.27M	111.09M
Investing Cash Flow	-28.31M	-40.29M	-62.95M	-39.50M	-18.79M	-14.58M
Financing Cash Flow	64.44M	-243.78M	-110.98M	-95.02M	-48.67M	21.43M

Deutsche Euroshop Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DEQ, the sentiment is Positive. The current price of 19.26 is above the 20-day moving average (MA) of 18.99, above the 50-day MA of 18.72, and above the 200-day MA of 18.45, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 75.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DEQ.

Deutsche Euroshop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIH1	81 Outperform	€321.29M	8.09	4.48%	0.39%	20.83%	-54.40%
DEQ	72 Outperform	€1.46B	10.87	7.42%	28.14%	-6.87%	―
LEG	70 Outperform	€4.59B	3.90	15.11%	4.45%	6.91%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GYC	61 Neutral	€1.58B	3.04	14.70%	―	0.44%	―
TEG	60 Neutral	€2.70B	6.47	12.29%	3.08%	-32.32%	―
AT1	59 Neutral	€2.93B	3.60	10.60%	―	-1.35%	―