Delivery Hero SE (DHER) AI Stock Analysis

• Market Cap: €6.46B
• Dividend Yield: N/A
• Average Volume (3M): 636.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• 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: 298,248,230
• 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: €31.61
• Price Target Upside: 46.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: €22.50 ▲(4.02% Upside)

Delivery Hero SE's overall stock score is driven by mixed financial performance, with revenue growth and cash flow improvements offset by profitability challenges and high leverage. Technical analysis shows short-term bullish momentum, but valuation concerns persist due to negative earnings and lack of dividends. The earnings call provided positive growth insights but also highlighted significant risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market strategies, enhancing long-term business sustainability and market position.

Cash Generation

Improved cash flow generation enhances financial flexibility, allowing for strategic investments and debt management, supporting long-term growth.

Operational Efficiency

Enhanced operational efficiencies through integration efforts reduce costs and improve service quality, strengthening competitive advantage.

Negative Factors

High Leverage

High leverage can strain financial resources and limit operational flexibility, posing risks to long-term financial stability.

Profitability Challenges

Ongoing profitability issues indicate challenges in cost management and pricing power, potentially impacting long-term financial health.

Legal and Compliance Risks

Significant legal and compliance challenges can lead to financial penalties and distract management, affecting long-term strategic focus.

Delivery Hero SE Business Overview & Revenue Model

Company Description

Delivery Hero SE (DHER) is a leading global online food ordering and delivery service based in Berlin, Germany. The company operates in more than 40 countries across Europe, the Middle East, Asia, and the Americas, providing a platform that connects consumers with local restaurants and food retailers. Delivery Hero offers a range of services, including food delivery, grocery delivery, and quick commerce, and operates various brands such as Foodora, Lieferheld, and Talabat.

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: Positive
• Last Price: 21.63
• 50DMA: Positive
• 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 Positive. The current price of 21.63 is above the 20-day moving average (MA) of 19.54, above the 50-day MA of 20.30, and below the 200-day MA of 23.43, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 71.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DHER.

Delivery Hero SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZAL	63 Neutral	€6.59B	27.68	9.04%	―	12.06%	18.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BIKE	54 Neutral	€133.82M	-23.20	-4.60%	―	21.61%	92.36%
DHER	50 Neutral	€6.46B	-11.27	-32.53%	―	23.23%	76.05%
HFG	49 Neutral	€919.55M	-5.02	-24.37%	―	-8.97%	-66.04%
AG1	47 Neutral	€5.53B	70.34	11.87%	―	31.25%	―
MRX	40 Underperform	€43.40M	-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.