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flatexDEGIRO AG (DE:FTK)
:FTK
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flatexDEGIRO AG
(XETRA:FTK)
Rating:73Outperform
Price Target:―
Positive Factors
Customer Growth
Customer growth as well as incremental cash and AUM surprised positively.
Earnings
FTK starts with a record quarter, showing a 31% increase in commission income, driven by both higher transactions and higher average commission per transaction.
Sales Performance
The company reports a +19% YoY increase in sales to €146m, exceeding consensus expectations by +8%.
Negative Factors
Guidance Restraint
The company has opted not to raise its full-year guidance, citing 'considerable uncertainty' regarding further market developments.
Guidance Uncertainty
Management only confirmed the FY25 guidance from March due to considerable uncertainty regarding further developments.
Profitability Concerns
Q4 net profit fell 16% short of consensus estimates due to headwinds from lower rates.
flatexDEGIRO AG (FTK) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€2.53B
Dividend Yield0.15%
Average Volume (3M)321.82K
Price to Earnings (P/E)22.6
Beta (1Y)0.99
Revenue Growth22.85%
EPS Growth55.53%
CountryDE
Employees1,250
SectorFinancial
Sector Strength76
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.49
Shares Outstanding110,134,544
10 Day Avg. Volume251,176
30 Day Avg. Volume321,818
Financial Highlights & Ratios
PEG Ratio3.05
Price to Book (P/B)3.54
Price to Sales (P/S)0.00
P/FCF Ratio3.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€25.29Price Target Upside9.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
flatexDEGIRO AG Business Overview & Revenue Model
Company DescriptionflatexDEGIRO AG provides online brokerage and IT solutions in the areas of finance and financial technology services in Europe. It operates through Financial Services (FIN) and Technologies (TECH) segments. The FIN segment offers business-to-consumer online brokerage, business-to-business white-label banking, electronic securities settlement, custody account management, and other banking products and services. This segment also provides business process outsourcing solutions; technical transaction processing services; cash management services; and securities-backed lending services, as well as engages in treasury and investment activities. The TECH segment is involved in the development, production, distribution, and maintenance of software, hardware, and information technology infrastructure. This segment also provides a platform for banking operations; corporate payment products; and develops and operates Limit Order System, which monitors the limit orders of European brokers against the price feed of connected issuers. The company was formerly known as flatex AG and changed its name to flatexDEGIRO AG in October 2020. flatexDEGIRO AG was incorporated in 1999 and is based in Frankfurt am Main, Germany.
How the Company Makes MoneyflatexDEGIRO AG generates revenue through a variety of streams linked to its online brokerage services. Primarily, the company earns money from transaction fees charged to clients when they buy or sell financial instruments using the platform. Additionally, flatexDEGIRO AG benefits from interest income on client deposits held within the platform, as well as from margin lending services where clients borrow funds to trade. The company also generates income through ancillary services such as providing market data and premium subscription services. Strategic partnerships with financial institutions and technology providers further enhance their service offerings and contribute to revenue through collaborative ventures and shared technology platforms.
flatexDEGIRO AG Earnings Call Summary
Earnings Call Date:Feb 25, 2025
(Q4-2024)
| % Change Since: 21.18%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong performance in terms of customer growth and financial metrics, with record revenues and net income. However, challenges such as high operating expenses and the expected decline in interest rates were also noted. The company is optimistic about future growth through strategic initiatives and product diversification.Q4-2024 Updates
Positive Updates
Record Year in Revenues and Earnings
Achim Schreck mentioned that 2024 was a record year for flatexDEGIRO in terms of revenues and earnings. Revenues reached €480 million, a 23% increase from the previous year, and net income grew by 55% year-over-year.
Significant Customer Growth
The company achieved a growth of 421,000 new customers, a 24% increase over the previous year, with the customer base exceeding 3 million.
Reduction in Regulatory Pressures
The special commissioner's mandate ended in September, and BaFin reduced the SREP by 150 basis points in December, indicating improvement in regulatory compliance.
Increase in Interest Income
Interest income increased by 32% to €180 million, supported by cash inflows and falling interest rates.
Negative Updates
High Operating Expenses
Personnel expenses and administrative costs increased significantly, with personnel expenses rising by 19% year-on-year.
Interest Rate Headwinds Expected
Interest rates are expected to come down in 2025, which will impact interest income negatively.
Challenges in Activating Inactive Customers
Less than 50% of customers were active in trading, indicating challenges in engaging the customer base.
Company Guidance
In the call discussing the preliminary results for fiscal year 2024, flatexDEGIRO provided a detailed outlook with numerous metrics. The company achieved a record year with revenues of €480 million, marking a 23% increase from the previous year, and net income grew by 55% to €112 million. Customer growth was significant, with a 24% increase over 2023, adding 421,000 new customers and reducing customer acquisition costs by 24% to €75 per customer. The total customer base exceeded 3 million, maintaining a compound annual growth rate of 14% over the past three years. Active customers reached nearly 1 million in Q4 2024, with an average of 20 to 25 trades per customer per year. Commission income grew by 11%, and interest income rose by 32% to €180 million, with cash under custody increasing by 17% year-end. For 2025, flatexDEGIRO anticipates a mixed outlook, with stable commission income offsetting a decline in interest income, and aims for top-line growth within a range of plus/minus 5%, and net income growth up to 10%. The company plans to focus on cost reduction, operational efficiency, and strategic initiatives to achieve its 2027 revenue target of approximately €650 million and net income of €200 million.flatexDEGIRO AG Financial Statement Overview
Summary
flatexDEGIRO AG demonstrates strong revenue growth and improving profitability, supported by a stable balance sheet with increasing equity and manageable debt levels. However, the decline in operating cash flow is a concern, despite maintaining positive free cash flow.Income Statement
Over recent years, flatexDEGIRO AG has demonstrated strong revenue growth, most notably from 2023 to 2024, where revenue increased by approximately 24.5%. The gross profit margin remains robust at 100% due to the nature of the business, with a commendable net profit margin increasing from 19.3% in 2023 to 24.1% in 2024. EBIT margin has also improved, indicating better operational efficiency. However, the absence of EBITDA data for 2024 limits the full assessment of operational performance.80
Positive
Balance Sheet
The company's balance sheet shows a strong equity position, with an improving debt-to-equity ratio from 0.17 in 2023 to 0.21 in 2024, suggesting manageable leverage. Return on equity has improved, reflecting enhanced profitability relative to shareholder's equity. The equity ratio remains stable, indicating a solid financial structure. The increase in total assets and shareholder's equity further supports financial stability.75
Positive
Cash Flow
Operating cash flow has decreased from 2023 to 2024, which could be a concern if the trend continues. However, free cash flow remains positive, albeit lower than the previous year, providing flexibility for investment and debt servicing. The free cash flow to net income ratio remains strong, indicating efficient cash conversion. Nevertheless, the decline in free cash flow growth rate warrants attention.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 462.50M | 371.29M | 406.96M | 417.58M | 261.49M | Gross Profit |
| 462.50M | 243.97M | 311.18M | 310.42M | 192.01M | EBIT |
| 254.30M | 113.60M | 161.76M | 96.60M | 78.49M | EBITDA |
| 0.00 | 139.67M | 192.34M | 114.09M | 98.53M | Net Income Common Stockholders |
| 111.50M | 71.86M | 106.07M | 51.54M | 49.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.50B | 2.97B | 2.54B | 1.77B | 1.36B | Total Assets |
| 5.40B | 4.54B | 4.10B | 3.69B | 2.82B | Total Debt |
| 160.02M | 112.77M | 125.39M | 181.00M | 125.77M | Net Debt |
| -3.15B | -2.60B | -1.94B | -1.44B | -1.13B | Total Liabilities |
| 4.65B | 3.87B | 3.49B | 3.19B | 2.37B | Stockholders Equity |
| 754.65M | 673.62M | 607.62M | 498.85M | 445.31M |
| Cash Flow | Free Cash Flow | |||
| 120.68M | 490.91M | 457.99M | 802.24M | 1.30B | Operating Cash Flow |
| 168.86M | 537.24M | 500.73M | 828.45M | 1.32B | Investing Cash Flow |
| -48.19M | -46.13M | 117.98M | -464.12M | -738.67M | Financing Cash Flow |
| -32.22M | -394.00K | -9.96M | -1.21M | 206.41M |
flatexDEGIRO AG Technical Analysis
Neutral
23.00
Price Trends
23.20
Positive
21.25
Positive
17.68
Positive
Market Momentum
-0.09
Positive
45.48
Neutral
23.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FTK, the sentiment is Neutral. The current price of 23 is below the 20-day moving average (MA) of 23.88, below the 50-day MA of 23.20, and above the 200-day MA of 17.68, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 45.48 is Neutral, neither overbought nor oversold. The STOCH value of 23.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:FTK.
flatexDEGIRO AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | €602.86M | 14.04 | 16.30% | 2.26% | 8.63% | -3.90% | |
74 Outperform | €48.95B | 25.40 | 19.07% | 1.28% | 14.88% | 13.32% | |
73 Outperform | €2.53B | 22.62 | 15.62% | 0.15% | 22.85% | 55.53% | |
64 Neutral | $12.73B | 9.92 | 7.90% | 78.88% | 12.06% | -7.95% | |
64 Neutral | €1.27B | 37.47 | 0.69% | 4.16% | 4.19% | -75.44% | |
61 Neutral | €1.23B | 82.16 | 9.19% | ― | 63.90% | -34.94% |
* Financial Sector Average
Performance Comparison
DE:FTK
flatexDEGIRO AG
23.22
9.80
73.03%
DE:HYQ
HYPOPORT
183.20
-115.40
-38.65%
DE:DB1
Deutsche Boerse
272.00
82.33
43.41%
DE:WUW
Wuestenrot & Wuerttembergische
13.38
0.97
7.82%
DE:GFT
GFT Technologies
21.90
-2.97
-11.93%
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.