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Deutsche Konsum REIT AG (DE:DKG)
:DKG

Deutsche Konsum REIT AG (DKG) AI Stock Analysis

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Deutsche Konsum REIT AG

(LSE:DKG)

Rating:40Underperform
Price Target:
€2.00
▼(-8.26%Downside)
The overall stock score of 40 reflects significant financial challenges, bearish technical indicators, and unattractive valuation metrics. The most significant factor is the poor financial performance, characterized by declining revenues, high leverage, and weak cash flow. Additionally, the technical analysis confirms a bearish momentum, which further impacts the score negatively. Valuation concerns, with a negative P/E and no dividend yield, also contribute to the low score.

Deutsche Konsum REIT AG (DKG) vs. iShares MSCI Germany ETF (EWG)

Deutsche Konsum REIT AG Business Overview & Revenue Model

Company DescriptionDeutsche Konsum REIT AG (DKG) is a real estate investment trust headquartered in Germany, focusing on the acquisition, management, and development of retail properties. The company primarily targets retail properties in well-established micro-locations across Germany, emphasizing grocery-anchored retail centers in regional and local areas. DKG's portfolio consists of properties that provide everyday goods and services, catering to the basic needs of consumers.
How the Company Makes MoneyDeutsche Konsum REIT AG generates revenue primarily through the rental income derived from its portfolio of retail properties. The company's key revenue stream is the leasing of space to a diverse range of tenants, including supermarkets, discount stores, and other essential retail businesses. DKG focuses on long-term lease agreements to ensure stable and predictable cash flows. Additionally, the company may engage in property development and improvement projects to enhance property values and rental yields. Strategic acquisitions and active asset management also contribute to revenue growth by optimizing occupancy rates and rental terms. Partnerships with established retail chains can further secure tenancy and drive consistent revenues.

Deutsche Konsum REIT AG Financial Statement Overview

Summary
Deutsche Konsum REIT AG exhibits financial challenges across its statements. The income statement indicates declining revenues and profitability, the balance sheet reflects high leverage and deteriorating equity, while cash flow analysis shows inconsistent cash generation. Collectively, these factors suggest potential financial vulnerabilities and the need for strategic improvements.
Income Statement
32
Negative
The income statement shows significant volatility with a declining revenue trend from 2022 to 2024. The gross profit margin is negative in the TTM, indicating cost inefficiencies. The net profit margin is also negative, highlighting profitability issues. Although there was a brief improvement in 2022, the subsequent years show a declining trajectory with a concerning EBIT margin due to negative EBIT in 2023.
Balance Sheet
45
Neutral
The balance sheet indicates a high debt-to-equity ratio, suggesting significant leverage, which could pose financial risks. The equity ratio has decreased over time, reflecting a shrinking equity base. Return on equity is negative in the TTM, pointing to a lack of profitability for shareholders. These factors suggest potential financial instability.
Cash Flow
55
Neutral
Cash flow analysis reveals a declining operating cash flow with a negative trend in free cash flow growth. The free cash flow to net income ratio is unreliable due to negative net income in the TTM. Although operating cash flow exceeds net income, indicating strong cash conversion, overall cash flow management appears weak with erratic trends.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue77.76M77.44M96.70M210.66M165.30M56.23M
Gross Profit-30.96M-12.49M48.79M80.41M104.51M29.66M
EBITDA30.86M40.01M-112.78M83.07M105.97M45.04M
Net Income-8.02M1.97M-180.99M60.39M91.37M34.17M
Balance Sheet
Total Assets901.42M945.38M1.03B1.18B1.09B935.73M
Cash, Cash Equivalents and Short-Term Investments6.43M1.41M4.93M4.83M652.70K209.10K
Total Debt461.22M556.35M650.31M646.81M619.22M537.34M
Total Liabilities545.12M627.01M713.78M667.51M625.33M545.07M
Stockholders Equity356.30M318.37M316.40M514.30M467.98M390.66M
Cash Flow
Free Cash Flow24.91M22.99M41.45M49.35M37.96M35.87M
Operating Cash Flow25.02M23.13M41.63M49.38M37.97M35.94M
Investing Cash Flow129.49M90.70M-17.52M-46.60M-92.30M-264.37M
Financing Cash Flow-152.21M-117.35M-24.00M1.39M54.78M203.00M

Deutsche Konsum REIT AG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.18
Price Trends
50DMA
2.58
Negative
100DMA
2.85
Negative
200DMA
3.38
Negative
Market Momentum
MACD
-0.12
Negative
RSI
31.88
Neutral
STOCH
27.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DKG, the sentiment is Negative. The current price of 2.18 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.58, and below the 200-day MA of 3.38, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 31.88 is Neutral, neither overbought nor oversold. The STOCH value of 27.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:DKG.

Deutsche Konsum REIT AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEFC9
71
Outperform
€116.47M5.3316.18%3.81%-3.72%149.34%
61
Neutral
€3.19B4.22-3.86%3.72%-3.18%17.24%
DEDKG
40
Underperform
€110.77M61.61-2.35%3.22%20.87%95.68%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:DKG
Deutsche Konsum REIT AG
2.18
-0.48
-18.05%
DE:FC9
FCR Immobilien AG
11.80
3.36
39.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2025