Delivery Hero SE (DHER) AI Stock Analysis

• Market Cap: €6.99B
• Dividend Yield: N/A
• Average Volume (3M): 798.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 23.67%
• EPS Growth: 63.04%
• Country: DE
• Employees: 42,711
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Specialty Retail
• EPS (TTM): -0.57
• Shares Outstanding: 295,618,650
• 10 Day Avg. Volume: 926,576
• 30 Day Avg. Volume: 798,208
• PEG Ratio: -1.65
• Price to Book (P/B): 5.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 90.84
• 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: €40.09
• Price Target Upside: 83.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 49 Neutral
• Price Target: €21.50 ▼(-1.51%Downside)

The overall stock score for Delivery Hero SE is primarily affected by its financial performance, which shows strong revenue growth but significant profitability challenges. Technical analysis indicates a bearish trend, with the stock trading below key moving averages. The valuation is weakened by a negative P/E ratio and lack of dividends, reflecting ongoing financial difficulties.

Positive Factors

Debt Management

The company successfully executed a €0.9bn buy-back of convertible bonds, contributing to good progress on debt reduction.

Financial Performance

DHER achieved notable improvements in the adjusted EBITDA margin.

Valuation

The IPO of talabat was a major milestone for Delivery Hero, showcasing potential hidden value within the Group.

Negative Factors

Geographical Performance

Korea continues to lag in geographical segment performance, impacting the overall growth.

Market Competition

The acquisition of JustEatTakeaway.com by Prosus raises a more serious competitor for DHER in Spain, Italy, and Poland.

Regional Risks

There are further risks that Meituan expands into other MENA markets and this is expected to constrain DHER’s longer-term margin profile in its most profitable market.

Delivery Hero SE Business Overview & Revenue Model

Company Description

Delivery Hero SE offers online food ordering and delivery services. It operates approximately in 50 countries in Europe, the Middle East, North Africa, Asia, and the Americas. The company was founded in 2011 and is headquartered in Berlin, Germany.

How the Company Makes Money

Delivery Hero SE generates revenue primarily through commissions charged to partner restaurants on each order processed through its platform. Additionally, it earns money by charging delivery fees to consumers, which may vary based on the order size, distance, and delivery speed. The company also offers premium subscription services, providing users with benefits such as free delivery and exclusive discounts. Delivery Hero's strategic partnerships with restaurants and its investment in technology to optimize delivery efficiency are significant factors contributing to its financial performance. Furthermore, the company's expansion into quick-commerce, offering delivery of groceries and household goods, presents additional revenue opportunities.

Delivery Hero SE Financial Statement Overview

Summary

Delivery Hero SE exhibits strong revenue growth but faces ongoing challenges with profitability, as indicated by persistent net losses and negative margins. The balance sheet is characterized by high leverage, posing potential financial stability risks. However, improvements in equity and positive operating and free cash flow in 2024 suggest better financial management.

Income Statement

Delivery Hero SE has shown consistent revenue growth over the years, with a significant increase from €1.24 billion in 2019 to €12.29 billion in 2024, indicating strong market expansion. However, the company continues to face challenges in profitability, as evidenced by negative net income and EBIT margins throughout the years. Despite a reduced EBIT loss in 2024 compared to 2023, the net profit margin remains negative, showcasing ongoing profitability issues.

Balance Sheet

The balance sheet of Delivery Hero SE indicates a high level of debt with a debt-to-equity ratio that remains elevated, highlighting potential solvency concerns. The equity ratio has decreased over the years, reflecting a shift towards higher liabilities. However, there is a notable improvement in stockholders' equity in 2024, which could be a positive signal if continued.

Cash Flow

In 2024, Delivery Hero SE demonstrated a significant improvement in operating cash flow compared to prior years, turning positive after several years of negative cash flow. The free cash flow also turned positive, indicating better cash management. However, the company still faces challenges with consistently generating free cash flow relative to net income, which remains negative.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.29B	9.94B	8.58B	5.86B	2.47B
Gross Profit	2.85B	2.97B	2.23B	1.26B	494.10M
EBITDA	342.90M	-1.16B	-2.01B	-265.80M	-1.07B
Net Income	-882.40M	-2.30B	-2.98B	-1.10B	-1.40B
Balance Sheet
Total Assets	12.75B	10.49B	12.86B	12.70B	5.77B
Cash, Cash Equivalents and Short-Term Investments	3.81B	1.66B	2.42B	2.45B	2.92B
Total Debt	5.67B	5.64B	5.72B	4.54B	3.14B
Total Liabilities	10.04B	8.84B	9.07B	7.21B	4.61B
Stockholders Equity	2.59B	1.65B	3.74B	5.47B	1.16B
Cash Flow
Free Cash Flow	303.00M	-280.20M	-941.60M	-1.22B	-738.40M
Operating Cash Flow	442.10M	-19.50M	-688.80M	-901.40M	-530.00M
Investing Cash Flow	-118.20M	-169.00M	-67.90M	-1.95B	-905.20M
Financing Cash Flow	1.83B	-466.10M	717.60M	2.30B	3.76B

Delivery Hero SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DHER, the sentiment is Negative. The current price of 21.83 is below the 20-day moving average (MA) of 23.17, below the 50-day MA of 23.99, and below the 200-day MA of 28.62, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 12.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:DHER.

Delivery Hero SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	€5.86B	12.16	-11.12%	4.18%	3.79%	-34.20%
MRX	57 Neutral	€63.65M	―	-77.36%	―	-6.33%	-65.26%
BIKE	55 Neutral	€115.27M	―	-9.49%	―	6.69%	84.27%
HFG	52 Neutral	€1.46B	―	-20.86%	―	-1.77%	-361.24%
DHER	49 Neutral	€6.99B	―	-41.57%	―	23.67%	63.04%
0QXN	―	€7.15B	26.51	10.57%	―	―	―
ATOGF	―	$6.53B	111.61	8.72%	―	―	―