Delticom (DEX) AI Stock Analysis

• Market Cap: €34.56M
• Dividend Yield: 5.85%
• Average Volume (3M): 2.78K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.52
• Revenue Growth: 3.31%
• EPS Growth: -66.08%
• Country: DE
• Employees: 122
• Sector: General
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): -0.10
• Shares Outstanding: 14,831,361
• 10 Day Avg. Volume: 2,618
• 30 Day Avg. Volume: 2,781
• PEG Ratio: -0.16
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -31.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: €2.50 ▲(10.13% Upside)

The overall stock score of 51 reflects moderate financial performance with concerns about profitability and cash flow. The technical analysis indicates a bearish trend with the stock being oversold, which could present a buying opportunity if fundamentals improve. The valuation is reasonable with an attractive dividend yield, providing some support to the stock.

Positive Factors

E-commerce market position

Delticom’s pure-play online tire retail model and multiple country shops provide durable distribution scale and low fixed retail costs versus brick-and-mortar. Strong supplier ties and broad SKU reach support recurring demand for replacement tires and structural e-commerce advantages.

Gross margin improvement

A 29.25% gross margin indicates improved product mix, pricing power or procurement terms with suppliers. Durable gross margin expansion supports ability to absorb SG&A and logistics costs, improving the runway for sustained profitability if maintained through supplier relationships and scale.

Improving leverage profile

Lower relative debt and a modestly higher equity ratio reduce financial risk and increase capacity to fund working capital or targeted investments. Improved leverage enhances flexibility to manage seasonality and invest in platform enhancements without excessive refinancing pressure.

Negative Factors

Very low net profitability

Sub-1% net margin means limited internal earnings retention and low buffer against cost shocks. Persistent low profitability constrains reinvestment in marketing, logistics or technology and raises sensitivity to input cost increases or competitive pricing pressure over the medium term.

Weak cash flow conversion

Declining operating cash flow and negative FCF growth signal poor conversion of reported earnings into liquidity. This limits ability to fund capex, platform upgrades, or buffer seasonal inventory needs, increasing reliance on external financing and pressuring long-term operational resilience.

Inconsistent revenue and seasonality

Uneven revenue growth and strong seasonality for winter/summer tires create lumpy cash flows and inventory management challenges. Structural reliance on seasonal replacement cycles heightens working capital swings and makes smoothing growth and margins more difficult over multi-quarter horizons.

Delticom Business Overview & Revenue Model

Company Description

Delticom AG, together with its subsidiaries, engages in online distribution of tires and wheels in Europe. The company sells its tires to retail and commercial customers for passenger cars, motorbikes, trucks, utility vehicles, buses, and wheel sets. The company operates 410 online shops and online distribution platforms in 75 countries. Delticom AG was founded in 1999 and is headquartered in Hanover, Germany.

How the Company Makes Money

Delticom generates revenue primarily through the sale of tires and related automotive products via its e-commerce platforms. The company operates multiple online shops catering to different markets, allowing it to reach a broad customer base. Key revenue streams include direct sales of tires, accessories, and services like tire installation and maintenance. Delticom also benefits from partnerships with various tire manufacturers, which can provide favorable pricing and access to exclusive products. Additionally, the company may engage in promotional campaigns and collaborations that drive traffic to its sites, further enhancing sales. Seasonal demand fluctuations, particularly in winter and summer tire segments, significantly influence earnings, as customers typically purchase tires ahead of seasonal changes.

Delticom Financial Statement Overview

Summary

Delticom's financial performance shows moderate stability with some growth in revenue and improved leverage ratios. However, profitability remains a concern with low net profit margins. Cash flow challenges suggest liquidity issues that need addressing for sustainable growth. The company should focus on enhancing profitability and cash flow management to improve its financial health.

Income Statement

The company's revenue growth has been inconsistent, with a decline from 2020 to 2021 and a slight recovery in 2022. Gross profit margin improved in 2024 to 29.25% from previous years. However, the net profit margin in 2024 was relatively low at 0.80%, indicating challenges in profitability. The EBIT margin also saw a decline in 2024 compared to previous years. Overall, the income statement shows moderate performance with room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio improved in 2024 as debt levels relative to equity decreased, suggesting better leverage management. The equity ratio was 21.97% in 2024, slightly improving from previous years, indicating a stable capital structure. Return on equity was low at 7.76% in 2024, showing limited returns on shareholder investments. The balance sheet reflects moderate financial stability with some improvement in leverage ratios.

Cash Flow

The free cash flow growth rate was negative in 2024, indicating cash flow challenges. Operating cash flow declined significantly in 2024, impacting the operating cash flow to net income ratio negatively. The free cash flow to net income ratio was also weak, suggesting limited conversion of net income to free cash flow. Overall, the cash flow statement highlights liquidity challenges and the need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	506.18M	507.05M	475.69M	509.30M	585.37M	541.26M
Gross Profit	112.70M	148.32M	93.07M	110.17M	156.61M	155.89M
EBITDA	18.05M	20.49M	21.83M	15.87M	17.25M	15.13M
Net Income	2.23M	4.04M	8.03M	2.81M	6.75M	6.73M
Balance Sheet
Total Assets	243.45M	236.73M	191.56M	195.19M	217.46M	199.77M
Cash, Cash Equivalents and Short-Term Investments	3.46M	5.39M	7.25M	2.98M	4.87M	5.63M
Total Debt	84.15M	89.53M	55.54M	73.58M	61.12M	94.10M
Total Liabilities	193.50M	184.72M	143.92M	155.52M	179.48M	184.97M
Stockholders Equity	49.96M	52.01M	47.63M	39.67M	37.00M	13.81M
Cash Flow
Free Cash Flow	18.17M	-1.01M	27.46M	-8.11M	16.14M	34.79M
Operating Cash Flow	21.82M	4.86M	33.06M	-5.52M	16.93M	35.89M
Investing Cash Flow	-4.06M	-5.88M	-5.60M	3.15M	-389.00K	-1.57M
Financing Cash Flow	-17.97M	-855.00K	-23.19M	-632.00K	-16.20M	-34.02M

Delticom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DEX, the sentiment is Positive. The current price of 2.27 is below the 20-day moving average (MA) of 2.31, above the 50-day MA of 2.16, and above the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 65.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DEX.

Delticom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DEX	51 Neutral	€34.56M	15.55	4.54%	5.85%	3.31%	-66.08%
H9W	45 Neutral	€36.56M	―	―	―	―	―
SF3	45 Neutral	€20.12M	-33.33	-1.36%	1.58%	4.55%	45.49%
MSAG	43 Neutral	€39.17M	-5.21	-11.55%	―	-40.37%	-406.54%
PGN	43 Neutral	€8.78M	-1.56	―	―	-22.60%	40.38%
HGEA	41 Neutral	€16.22M	-0.76	-35.15%	―	-10.38%	-19.93%