Delivery Hero SE (DHER) AI Stock Analysis

• Market Cap: €6.20B
• Dividend Yield: N/A
• Average Volume (3M): 636.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: 23.23%
• EPS Growth: 76.05%
• Country: DE
• Employees: 42,711
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -1.35
• Shares Outstanding: 298,230,930
• 10 Day Avg. Volume: 565,607
• 30 Day Avg. Volume: 636,063
• PEG Ratio: 0.14
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 15.44
• 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: €30.98
• Price Target Upside: 61.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: €20.00 ▲(4.17% Upside)

Delivery Hero SE's overall stock score is primarily influenced by its mixed financial performance, characterized by revenue growth and cash flow improvements but hindered by profitability issues and high leverage. Technical analysis indicates a bearish trend, and valuation concerns persist due to a negative P/E ratio. The earnings call provided some positive insights, but challenges remain, particularly with FX headwinds and legal issues.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, supporting long-term business expansion and competitive positioning.

Cash Generation

Improved cash flow generation enhances financial flexibility, enabling strategic investments and debt reduction, crucial for sustainable growth.

Operational Efficiency

Successful integration and efficiency gains reduce costs and enhance customer value, strengthening competitive advantage and profitability.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth or weather downturns.

Profitability Challenges

Persistent profitability issues hinder the company's ability to generate sustainable earnings, affecting long-term financial health and investor confidence.

Legal and Compliance Risks

Significant legal and compliance costs can drain resources and distract management, potentially impacting strategic initiatives and financial performance.

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's revenue model primarily revolves around commissions charged to restaurants for each order placed through its platform. The company earns a percentage of the order value, which can vary based on the restaurant's agreement and the region. In addition to commissions, Delivery Hero generates revenue through delivery fees charged to customers, which are typically added to the total order cost. Another significant revenue stream comes from advertising services offered to restaurants, allowing them to promote their listings on the platform. The company has also established key partnerships with various food chains and grocery retailers, enhancing its service offerings and contributing to its earnings. Factors such as market expansion, increasing consumer demand for convenience, and the growth of the food delivery sector further bolster its revenue potential.

Delivery Hero SE Financial Statement Overview

Summary

Delivery Hero SE shows modest revenue growth and improved cash flow generation. However, profitability remains a concern with negative net profit and high leverage, indicating financial risk.

Income Statement

Delivery Hero SE shows a modest revenue growth rate of 4.31% in the TTM, indicating a positive trend in sales. However, the company struggles with profitability, as evidenced by a negative net profit margin of -4.18% and a low EBIT margin of 1.02%. The gross profit margin of 25.54% suggests some efficiency in managing production costs, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.11, indicating significant leverage and potential financial risk. The return on equity is negative at -23.41%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 20.03%, suggesting a relatively low proportion of equity financing compared to total assets.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 21.64%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.25 suggests that operating cash flows are not fully covering net losses, but the free cash flow to net income ratio of 0.83 indicates some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.40B	12.29B	9.94B	8.58B	5.86B	2.47B
Gross Profit	3.42B	3.33B	2.97B	2.23B	1.26B	494.10M
EBITDA	372.10M	342.90M	-1.31B	-2.01B	-265.80M	-1.07B
Net Income	-560.50M	-882.40M	-2.30B	-2.98B	-1.10B	-1.40B
Balance Sheet
Total Assets	10.96B	12.75B	10.49B	12.86B	12.70B	5.77B
Cash, Cash Equivalents and Short-Term Investments	2.81B	3.81B	1.66B	2.42B	2.45B	2.92B
Total Debt	4.64B	5.67B	5.64B	5.72B	4.54B	3.14B
Total Liabilities	8.63B	10.04B	8.84B	9.07B	7.21B	4.61B
Stockholders Equity	2.20B	2.59B	1.65B	3.74B	5.47B	1.16B
Cash Flow
Free Cash Flow	774.90M	499.20M	-280.20M	-941.60M	-1.22B	-738.40M
Operating Cash Flow	930.50M	638.30M	-19.50M	-688.80M	-901.40M	-530.00M
Investing Cash Flow	-286.50M	-59.50M	-169.00M	-67.90M	-1.95B	-905.20M
Financing Cash Flow	531.40M	1.58B	-466.10M	717.60M	2.30B	3.76B

Delivery Hero SE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.20
• 50DMA: Negative
• 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:DHER, the sentiment is Neutral. The current price of 19.2 is above the 20-day moving average (MA) of 17.75, below the 50-day MA of 20.85, and below the 200-day MA of 23.70, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 69.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ZAL	59 Neutral	€6.16B	25.54	9.04%	―	12.06%	18.20%
HFG	56 Neutral	€1.08B	-5.89	-24.37%	―	-8.97%	-66.04%
BIKE	54 Neutral	€136.03M	-23.58	-4.60%	―	21.61%	92.36%
DHER	49 Neutral	€6.20B	-10.82	-32.53%	―	23.23%	76.05%
AG1	47 Neutral	$5.21B	65.05	11.87%	―	31.25%	―
MRX	40 Underperform	€49.70M	-0.63	-75.59%	―	-16.95%	-24.45%

Delivery Hero SE Corporate Events

Delivery Hero’s Earnings Call: Growth Amid Challenges

The recent earnings call for Delivery Hero presented a mixed sentiment, reflecting both optimism and caution. The company reported significant growth in Gross Merchandise Value (GMV) and revenue, alongside improvements in EBITDA and cash flow. However, these positive developments were tempered by challenges such as foreign exchange (FX) headwinds affecting guidance, legal issues in Spain, and increased costs from the expansion of their own delivery services.