flatexDEGIRO AG (FTK) AI Stock Analysis

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flatexDEGIRO AG

(XETRA:FTK)

Rating:73Outperform

Price Target:―

flatexDEGIRO AG's overall stock score of 73 reflects strong financial performance characterized by robust revenue growth and profitability. Despite challenges such as declining operating cash flow and potential interest rate headwinds, the company shows resilience through customer growth and strategic initiatives. The stock's moderate valuation and mixed technical signals suggest cautious optimism.

Positive Factors

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

The company has opted not to raise its full-year guidance, citing 'considerable uncertainty' regarding further market developments.

Profitability

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

€2.77B

Dividend Yield0.16%

Average Volume (3M)311.40K

Price to Earnings (P/E)25.0

Beta (1Y)1.03

Revenue Growth22.85%

EPS Growth55.53%

CountryDE

Employees1,250

SectorFinancial

Sector Strength78

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)0.49

Shares Outstanding110,134,544

10 Day Avg. Volume298,424

30 Day Avg. Volume311,398

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

€25.80

Price Target Upside1.42% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

flatexDEGIRO AG Business Overview & Revenue Model

Company DescriptionflatexDEGIRO AG (FTK) is a leading European online broker offering a wide array of financial services and products to retail investors. Headquartered in Frankfurt, Germany, the company operates across several European markets, providing a comprehensive online trading platform that facilitates access to various financial instruments, including equities, bonds, ETFs, mutual funds, options, and futures. With a strong focus on innovation and customer experience, flatexDEGIRO AG is committed to delivering efficient and cost-effective trading solutions to its clients.

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: 34.04%|

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

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
EBITDA	0.00	139.67M	192.34M	114.09M	98.53M
Net Income	111.50M	71.86M	106.07M	51.54M	49.91M
Balance Sheet
Total Assets	5.40B	4.54B	4.10B	3.69B	2.82B
Cash, Cash Equivalents and Short-Term Investments	3.50B	2.97B	2.54B	1.77B	1.36B
Total Debt	160.02M	112.77M	125.39M	181.00M	125.77M
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

Technical Analysis Sentiment

Positive

Last Price25.44

Price Trends

50DMA

24.11

Positive

100DMA

22.18

Positive

200DMA

18.51

Positive

Market Momentum

MACD

0.31

Negative

RSI

66.15

Neutral

STOCH

90.80

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FTK, the sentiment is Positive. The current price of 25.44 is above the 20-day moving average (MA) of 23.82, above the 50-day MA of 24.11, and above the 200-day MA of 18.51, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 90.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FTK.

flatexDEGIRO AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFT	79 Outperform	€627.87M	14.50	16.30%	1.80%	8.63%	-3.90%
FTK	73 Outperform	€2.77B	25.02	15.62%	0.16%	22.85%	55.53%
DB1	70 Outperform	€49.42B	25.44	19.07%	1.26%	14.88%	13.32%
Sector *	66 Neutral	€9.28B	12.51	9.45%	3.41%	14.85%	6.12%
WUW	64 Neutral	€1.29B	37.96	0.69%	4.72%	4.19%	-75.44%
HYQ	63 Neutral	€1.43B	97.52	9.19%	―	63.90%	-34.94%

* Financial Sector Average

Performance Comparison

DE:FTK

flatexDEGIRO AG

25.56

12.90

101.90%

DE:HYQ

HYPOPORT

212.00

-97.60

-31.52%

DE:DB1

Deutsche Boerse

267.20

77.83

41.10%

DE:WUW

Wuestenrot & Wuerttembergische

13.68

0.83

6.47%

DE:GFT

GFT Technologies

23.35

-1.13

-4.60%

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: Apr 20, 2025