flatexDEGIRO AG (FTK) AI Stock Analysis

• Market Cap: €4.53B
• Dividend Yield: 0.11%
• Average Volume (3M): 300.26K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 1.16
• Revenue Growth: 16.56%
• EPS Growth: 17.76%
• Country: DE
• Employees: 1,250
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.79
• Shares Outstanding: 110,134,544
• 10 Day Avg. Volume: 395,787
• 30 Day Avg. Volume: 300,264
• PEG Ratio: 0.26
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 3.53
• P/FCF Ratio: 13.55
• 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: €41.00
• Price Target Upside: -0.39% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €47.00 ▲(14.19% Upside)

flatexDEGIRO AG's strong financial performance and technical indicators are the primary drivers of its stock score. The company's robust revenue growth and stable balance sheet are complemented by positive market momentum. However, the high P/E ratio and low dividend yield slightly offset these strengths. The earnings call provided additional positive sentiment, despite some operational challenges.

Positive Factors

Customer Growth

Sustained 22% YoY gross customer additions indicate durable user acquisition and expanding addressable retail market. A growing client base supports recurring commission and custody revenues, increases lifetime value, and enables scale economics across product features and marketing over the next 2–6 months.

Assets Under Custody (AUC) Expansion

A 37% YoY rise in AUC to EUR 83bn strengthens net interest potential, fee income and client stickiness. Larger custody balances create durable revenue opportunity from FX, custody fees and eventual securities lending, improving capital light scalability and long-term revenue resilience.

Revenue and Margin Improvement

Robust top-line growth combined with rising net margins demonstrates operating leverage and improved cost efficiency. Durable margin expansion suggests the business can convert higher volumes into profits, enhancing cash generation and capacity to invest in product expansion over the medium term.

Negative Factors

Operating Cash Flow Decline

A falling operating cash flow trend weakens internal funding for growth initiatives, dividends, or buybacks and raises reliance on external financing. Even with positive free cash flow, continued decline could limit strategic flexibility and slow reinvestment in product rollout or market expansion over coming quarters.

Interest Income Sensitivity

Significant exposure to net interest income creates structural earnings sensitivity to ECB rate moves. A sustained lower-rate environment can compress a key revenue stream, undermining profitability and making revenue more dependent on transaction volumes and fees, increasing cyclicality risk.

Product Rollout & Regulatory Dependency

Dependency on partner licensing for international crypto rollout and delayed MiCAR approval highlights execution and regulatory risk. Slower rollout delays diversification (crypto, securities lending), postpones new revenue streams and raises uncertainty around timing and scale of strategic initiatives.

flatexDEGIRO AG Business Overview & Revenue Model

Company Description

flatexDEGIRO 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 Money

flatexDEGIRO AG generates revenue through various streams, primarily from transaction fees charged on trades executed by its users. This includes commissions on stock and options trading, as well as fees associated with accessing premium features or services on their platform. Additionally, the company earns money from interest on cash balances held by customers and from securities lending activities. Partnerships with financial institutions and exchanges enhance its offerings and can contribute to additional revenue through referral fees or shared commissions. The company's emphasis on low-cost trading attracts a high volume of transactions, which is crucial for its revenue model.

flatexDEGIRO AG Financial Statement Overview

Summary

flatexDEGIRO AG shows strong financial performance with robust revenue growth and improving profitability. The balance sheet is stable with increasing equity and manageable debt levels. However, the decline in operating cash flow is a concern, though free cash flow remains positive.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	499.19M	462.50M	390.73M	406.96M	417.58M	261.49M
Gross Profit	499.19M	462.50M	286.86M	311.18M	310.42M	192.01M
EBITDA	236.33M	211.86M	139.67M	192.34M	128.43M	98.53M
Net Income	132.22M	111.50M	71.86M	106.07M	51.54M	49.91M
Balance Sheet
Total Assets	6.33B	5.40B	4.54B	4.10B	3.69B	2.82B
Cash, Cash Equivalents and Short-Term Investments	4.16B	3.50B	2.97B	2.54B	1.77B	1.36B
Total Debt	145.30M	160.02M	112.77M	125.39M	181.00M	125.77M
Total Liabilities	5.52B	4.65B	3.87B	3.49B	3.19B	2.37B
Stockholders Equity	814.41M	754.65M	673.62M	607.62M	498.85M	445.31M
Cash Flow
Free Cash Flow	1.49B	120.68M	490.91M	457.99M	802.24M	1.30B
Operating Cash Flow	1.50B	168.86M	537.24M	500.73M	828.45M	1.32B
Investing Cash Flow	-130.35M	-48.19M	-46.13M	117.98M	-464.12M	-738.67M
Financing Cash Flow	-56.90M	-32.22M	-394.00K	-9.96M	-1.21M	184.38M

flatexDEGIRO AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 41.16 is above the 20-day moving average (MA) of 38.64, above the 50-day MA of 35.67, and above the 200-day MA of 29.19, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 72.26 is Negative, neither overbought nor oversold. The STOCH value of 83.12 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWB	77 Outperform	€327.51M	6.84	24.12%	1.91%	15.69%	268.17%
FTK	76 Outperform	€4.53B	34.13	17.14%	0.11%	16.56%	17.76%
LUS1	68 Neutral	€215.19M	7.31	39.83%	8.03%	36.62%	23.21%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
XTP	56 Neutral	€236.09M	―	―	―	―	―