DEMIRE Deutsche Mittelstand Real Estate ate ate (DMRE) AI Stock Analysis

• Market Cap: €60.14M
• Dividend Yield: N/A
• Average Volume (3M): 6.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -48.02%
• EPS Growth: -1.65%
• Country: DE
• Employees: 28
• Sector: General
• Sector Strength: N/A
• Industry: Real Estate - Services
• EPS (TTM): -0.14
• Shares Outstanding: 107,777,320
• 10 Day Avg. Volume: 5,266
• 30 Day Avg. Volume: 6,721
• PEG Ratio: 0.02
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 2.37
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €0.54 ▲(32.68% Upside)

The score is held down primarily by weak financial performance—severe losses, margin deterioration, and high leverage—despite improved revenue and free cash flow growth. Technicals provide some support with positive momentum and price strength versus shorter moving averages, but elevated RSI/Stoch reduce confidence. Valuation adds risk because a negative P/E reflects ongoing losses and there is no dividend support.

Positive Factors

Free cash flow growth

A 43.3% TTM rise in free cash flow signals improving cash generation capacity, enabling DMRE to fund maintenance, selective acquisitions or debt reduction without relying solely on equity markets. Sustained FCF growth materially improves financial flexibility over months.

Revenue growth trend

A 6.31% TTM revenue increase shows ongoing demand for DMRE's mid‑market German commercial portfolio. Persistent top‑line growth supports occupancy and rental income stability, providing a structural base to recover margins and strengthen operating leverage over the next 2–6 months.

Diversified income streams

DMRE generates revenue from rents, management fees, property sales and strategic partnerships. This mix balances recurring rental cashflows with fee and transactional upside, reducing dependence on any single source and providing multiple durable pathways for cash generation.

Negative Factors

Deep negative profitability

Net margin at -113.97% with negative ROE indicates sustained unprofitability that erodes equity and limits reinvestment. Persistent losses reduce retained earnings, complicate capital raising and hinder the company’s ability to generate shareholder returns over the medium term.

High leverage

A debt‑to‑equity ratio near 3.0 and a falling equity ratio show substantial reliance on debt financing. For an asset‑heavy real estate firm this increases refinancing and interest‑rate risk, limits strategic flexibility, and amplifies downside in an adverse market environment.

Weak cash conversion

An operating cash flow to net income ratio of 0.14 signals poor conversion of accounting earnings into cash. That gap strains liquidity and makes debt servicing or necessary capex more dependent on asset sales or external financing, undermining medium‑term financial resilience.

DEMIRE Deutsche Mittelstand Real Estate ate ate Business Overview & Revenue Model

Company Description

DEMIRE Deutsche Mittelstand Real Estate AG engages in the acquisition, management, and leasing of commercial real estate properties for medium-sized companies in Germany. It operates through Core Portfolio and Fair Value REIT segments. The company offers office, retail, hotel, and logistic properties. As of December 31, 2021, it had a real estate portfolio of 64 commercial properties with total lettable floor space of around 912,724 square meters. The company also engages in the real estate investment activities. The company was formerly known as MAGNAT Real Estate AG and changed its name to DEMIRE Deutsche Mittelstand Real Estate AG in June 2013. DEMIRE Deutsche Mittelstand Real Estate AG was founded in 2006 and is headquartered in Langen, Germany. DEMIRE Deutsche Mittelstand Real Estate AG operates as a subsidiary of AEPF III 15 S.à r.l.

How the Company Makes Money

DMRE generates revenue through multiple channels primarily related to its property portfolio. The main source of income comes from rental income collected from tenants occupying its commercial properties. Additionally, the company profits from property management fees and service charges associated with maintaining and operating its real estate assets. DMRE also engages in property sales, capitalizing on appreciation in property values over time. Strategic partnerships with local and international investors further enhance its revenue potential, as these collaborations can lead to joint ventures in property development and investment opportunities. Overall, DMRE's diversified portfolio and focus on the mid-market segment provide a steady stream of income and growth potential.

DEMIRE Deutsche Mittelstand Real Estate ate ate Financial Statement Overview

Summary

Financial performance is weak: profitability is deeply negative (net margin -113.97%) with declining EBIT/EBITDA and gross margins, and leverage is high (debt-to-equity 2.95) with negative ROE. Offsetting this, revenue grew 6.31% (TTM) and free cash flow growth was strong (+43.3% TTM), though cash conversion remains low (operating cash flow to net income 0.14).

Income Statement

The company has experienced fluctuating revenue growth with a recent increase of 6.31% in TTM. However, profitability metrics are concerning, with a negative net profit margin of -113.97% and declining EBIT and EBITDA margins. The gross profit margin has also decreased over time, indicating pressure on cost management.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 2.95 in TTM, indicating significant reliance on debt financing. Return on equity is negative, reflecting ongoing losses. The equity ratio has been declining, suggesting reduced financial stability.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 43.3% in TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.14, suggesting challenges in converting income into cash. The free cash flow to net income ratio is stable at 1.0, showing some resilience in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.10M	191.93M	142.53M	121.89M	206.64M	197.72M
Gross Profit	37.97M	38.88M	15.74M	54.15M	68.62M	69.18M
EBITDA	3.74M	2.29M	-140.42M	-4.21M	106.30M	38.10M
Net Income	-124.62M	-86.48M	-147.19M	-71.50M	58.50M	8.50M
Balance Sheet
Total Assets	886.04M	951.19M	1.33B	1.54B	1.71B	1.63B
Cash, Cash Equivalents and Short-Term Investments	53.01M	57.72M	117.04M	53.34M	139.45M	98.09M
Total Debt	527.91M	513.29M	816.99M	26.60M	24.47M	18.73M
Total Liabilities	705.58M	709.27M	994.25M	1.05B	1.11B	1.03B
Stockholders Equity	157.37M	218.10M	303.59M	450.23M	549.02M	557.96M
Cash Flow
Free Cash Flow	26.46M	34.52M	27.83M	15.65M	-27.16M	-89.53M
Operating Cash Flow	26.46M	34.52M	40.71M	48.00M	-2.44M	-24.10M
Investing Cash Flow	12.87M	88.61M	65.42M	-26.27M	-238.00K	34.98M
Financing Cash Flow	-154.07M	-198.31M	-43.56M	-103.94M	-26.98M	-11.40M

DEMIRE Deutsche Mittelstand Real Estate ate ate Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.41
• 50DMA: Positive
• 100DMA: Positive
• 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:DMRE, the sentiment is Positive. The current price of 0.41 is below the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.47, and below the 200-day MA of 0.60, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 43.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DMRE.

DEMIRE Deutsche Mittelstand Real Estate ate ate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FC9	73 Outperform	€114.50M	5.18	16.26%	4.02%	-10.75%	199.01%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DMRE	46 Neutral	€60.14M	-0.48	-56.66%	―	-48.02%	-1.65%