Delticom (DEX) AI Stock Analysis

• Market Cap: €32.78M
• Dividend Yield: 5.97%
• Average Volume (3M): 2.78K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.70
• Revenue Growth: 3.31%
• EPS Growth: -66.08%
• Country: DE
• Employees: 122
• Sector: Consumer Cyclical
• Sector Strength: 84
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: €2.00 ▼(-0.50% Downside)

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

Business Model Strength

Delticom's e-commerce model allows it to efficiently reach a broad customer base, providing a wide range of products and services, which supports long-term growth and market presence.

Leverage Management

Improved leverage ratios indicate better financial management, reducing risk and potentially lowering financing costs, which is beneficial for long-term financial health.

Gross Profit Margin Improvement

An improved gross profit margin suggests better cost management and pricing strategies, enhancing the company's ability to generate profits over time.

Negative Factors

Profitability Challenges

Low net profit margins indicate challenges in converting revenue into profit, which can hinder long-term financial sustainability and investment capacity.

Cash Flow Challenges

Negative free cash flow growth suggests liquidity issues, potentially limiting the company's ability to invest in growth opportunities and manage debt effectively.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects volatility in market demand or operational execution, which could affect long-term strategic planning and market competitiveness.

Delticom Business Overview & Revenue Model

Company Description

Delticom AG (DEX) is a leading online tire retailer based in Germany, specializing in the sale of tires for various vehicles, including cars, motorcycles, and commercial vehicles. The company operates in the e-commerce sector, providing a wide range of tire brands and models through its online platforms. In addition to tires, Delticom offers associated products and services, such as tire mounting and repair, making it a comprehensive solution for automotive needs.

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: Negative
• Last Price: 2.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2.01 is below the 20-day moving average (MA) of 2.08, below the 50-day MA of 2.14, and below the 200-day MA of 2.22, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 44.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:DEX.

Delticom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DEX	51 Neutral	€32.78M	14.75	4.54%	5.97%	3.31%	-66.08%
H9W	45 Neutral	€31.23M	―	―	―	―	―
SF3	45 Neutral	€24.12M	-40.22	-1.36%	1.48%	4.55%	45.49%
MSAG	43 Neutral	€41.27M	-5.66	-11.55%	―	-40.37%	-406.54%
HGEA	41 Neutral	€19.03M	-0.97	-35.15%	―	-10.38%	-19.93%
PGN	39 Underperform	€9.32M	―	―	―	-22.60%	40.38%