Deutsche Konsum REIT AG (DKG) AI Stock Analysis

• Market Cap: €98.44M
• Dividend Yield: 3.22%
• Average Volume (3M): 5.00K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 0.67
• Revenue Growth: 17.35%
• EPS Growth: 80.47%
• Country: DE
• Employees: 17
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - General
• EPS (TTM): -0.67
• Shares Outstanding: 50,351,090
• 10 Day Avg. Volume: 9,387
• 30 Day Avg. Volume: 4,996
• PEG Ratio: -0.62
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 5.43
• 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: €2.00
• Price Target Upside: 1.52% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: €2.00 ▲(1.52% Upside)

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 Business Overview & Revenue Model

Company Description

Deutsche Konsum REIT-AG is a real estate investment company. The company is headquartered in Potsdam, Brandenburg and currently employs 15 full-time employees. The company focuses on the acquisition, rental, inventory management, and sale of retail properties across Germany, with focus on regional centers and micro-locations in the northern and eastern part of Germany.

How the Company Makes Money

Deutsche Konsum REIT AG generates revenue primarily through rental income derived from its portfolio of retail properties. The company leases these properties to a variety of tenants, including grocery stores and other retail businesses, which provides a steady stream of cash flow. Additionally, DKG benefits from long-term lease agreements, which stabilize its income and minimize vacancy risks. The company's revenue model is further supported by its focus on acquiring properties in high-demand areas, ensuring a consistent occupancy rate. DKG may also engage in property development or refurbishment to enhance the value of its assets, potentially increasing rental income. Moreover, the company's strategic partnerships with tenants and its ability to leverage market trends contribute significantly to its earnings.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.63M	77.44M	96.70M	210.66M	165.30M	56.23M
Gross Profit	-81.83M	-12.49M	48.79M	80.41M	104.51M	29.66M
EBITDA	-22.97M	40.01M	-112.78M	83.07M	105.97M	45.04M
Net Income	-46.33M	1.97M	-180.99M	60.39M	91.37M	34.17M
Balance Sheet
Total Assets	853.18M	945.38M	1.03B	1.18B	1.09B	935.73M
Cash, Cash Equivalents and Short-Term Investments	9.70M	1.41M	4.93M	4.83M	652.70K	209.10K
Total Debt	136.66M	556.35M	650.31M	646.81M	619.22M	537.34M
Total Liabilities	530.52M	627.01M	713.78M	667.51M	625.33M	545.07M
Stockholders Equity	322.66M	318.37M	316.40M	514.30M	467.98M	390.66M
Cash Flow
Free Cash Flow	17.50M	22.99M	41.45M	49.35M	37.96M	35.87M
Operating Cash Flow	17.57M	23.13M	41.63M	49.38M	37.97M	35.94M
Investing Cash Flow	146.02M	90.70M	-17.52M	-46.60M	-92.30M	-264.37M
Financing Cash Flow	-157.05M	-117.35M	-24.00M	1.39M	54.78M	203.00M

Deutsche Konsum REIT AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.97
• 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:DKG, the sentiment is Negative. The current price of 1.97 is below the 20-day moving average (MA) of 2.04, below the 50-day MA of 2.10, and below the 200-day MA of 2.87, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.53 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FC9	69 Neutral	111.54M	5.05	15.09%	3.98%	-10.75%	199.01%
DKG	40 Underperform	€98.44M	61.61	-14.15%	3.22%	17.35%	80.47%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%