Deutsche Konsum REIT AG (DKG) AI Stock Analysis

• Market Cap: €110.77M
• Dividend Yield: 3.22%
• Average Volume (3M): 18.76K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 0.59
• Revenue Growth: 20.87%
• EPS Growth: 95.68%
• Country: DE
• Employees: 17
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - General
• EPS (TTM): 0.04
• Shares Outstanding: 50,351,090
• 10 Day Avg. Volume: 21,201
• 30 Day Avg. Volume: 18,760
• PEG Ratio: 0.05
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.45
• 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: €2.90
• Price Target Upside: 33.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 40 Underperform
• 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 Business Overview & Revenue Model

Company Description

Deutsche 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 Money

Deutsche 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

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	77.76M	77.44M	96.70M	210.66M	165.30M	56.23M
Gross Profit	-30.96M	-12.49M	48.79M	80.41M	104.51M	29.66M
EBITDA	30.86M	40.01M	-112.78M	83.07M	105.97M	45.04M
Net Income	-8.02M	1.97M	-180.99M	60.39M	91.37M	34.17M
Balance Sheet
Total Assets	901.42M	945.38M	1.03B	1.18B	1.09B	935.73M
Cash, Cash Equivalents and Short-Term Investments	6.43M	1.41M	4.93M	4.83M	652.70K	209.10K
Total Debt	461.22M	556.35M	650.31M	646.81M	619.22M	537.34M
Total Liabilities	545.12M	627.01M	713.78M	667.51M	625.33M	545.07M
Stockholders Equity	356.30M	318.37M	316.40M	514.30M	467.98M	390.66M
Cash Flow
Free Cash Flow	24.91M	22.99M	41.45M	49.35M	37.96M	35.87M
Operating Cash Flow	25.02M	23.13M	41.63M	49.38M	37.97M	35.94M
Investing Cash Flow	129.49M	90.70M	-17.52M	-46.60M	-92.30M	-264.37M
Financing Cash Flow	-152.21M	-117.35M	-24.00M	1.39M	54.78M	203.00M

Deutsche Konsum REIT AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.18
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FC9	71 Outperform	€116.47M	5.33	16.18%	3.81%	-3.72%	149.34%
Sector *	61 Neutral	€3.19B	4.22	-3.86%	3.72%	-3.18%	17.24%
DKG	40 Underperform	€110.77M	61.61	-2.35%	3.22%	20.87%	95.68%