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flatexDEGIRO AG (DE:FTK)
:FTK
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flatexDEGIRO AG
(XETRA:FTK)
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Rating:73Outperform
Price Target:
€31.00
▲(10.09% Upside)
flatexDEGIRO AG's overall stock score is driven by strong financial performance and positive earnings call sentiment. Technical indicators support a bullish outlook, although valuation metrics suggest moderate pricing. The absence of significant corporate events further stabilizes the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and market position.
Customer Growth
Significant customer growth expands the user base, increasing potential revenue streams and reinforcing the company's competitive position in the market.
Regulatory Improvements
Reduced regulatory pressures enhance operational flexibility and reduce compliance costs, supporting sustainable business operations and profitability.
Negative Factors
Declining Operating Cash Flow
A decline in operating cash flow can limit the company's ability to reinvest in growth, manage debt, and maintain liquidity, posing long-term financial risks.
High Operating Expenses
Rising operating expenses can erode profit margins and reduce financial flexibility, challenging the company's ability to sustain profitability over time.
Interest Rate Headwinds
Expected declines in interest income due to falling rates can reduce a significant revenue stream, impacting overall financial performance and growth prospects.
flatexDEGIRO AG (FTK) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€3.08B
Dividend Yield0.14%
Average Volume (3M)211.73K
Price to Earnings (P/E)23.2
Beta (1Y)1.05
Revenue Growth16.56%
EPS Growth17.76%
CountryDE
Employees1,250
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.79
Shares Outstanding110,134,544
10 Day Avg. Volume329,525
30 Day Avg. Volume211,729
Financial Highlights & Ratios
PEG Ratio-0.95
Price to Book (P/B)2.17
Price to Sales (P/S)3.53
P/FCF Ratio13.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€29.64Price Target Upside5.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
flatexDEGIRO AG Business Overview & Revenue Model
Company DescriptionflatexDEGIRO AG is a leading online brokerage platform based in Germany, primarily focused on providing retail investors with access to financial markets. The company operates in the fintech sector and offers a range of services including trading in stocks, ETFs, options, bonds, and cryptocurrencies. With a commitment to low-cost trading, flatexDEGIRO aims to democratize investing for individuals across Europe through its innovative technology and user-friendly platform.
How the Company Makes MoneyflatexDEGIRO 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 Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with record revenues and growth in customer base and assets under custody. Effective cost management and positive trading metrics were highlighted. However, there were concerns about delays in the international rollout of crypto trading, a decline in interest income, and potential interest rate headwinds. Overall, the positives outweighed the negatives, but challenges remain.Q2-2025 Updates
Positive Updates
Record Half-Year Performance
Achieved a record half year in both top line and bottom line. Raised full-year guidance aiming for more than EUR 0.5 billion in revenues and a 15% to 25% increase in net income.
Strong Customer Growth
Gross customer additions increased by 22% year-on-year, with positive net cash inflows of EUR 2.5 billion in Q2, representing a significant increase of over 70% year-on-year.
Effective Cost Management
Reduced other administrative expenses by 20% year-on-year and maintained personnel expenses despite wage inflation and provisions for personnel measures.
Increased Assets Under Custody
Assets under custody reached a new record with more than EUR 83 billion, growing 37% year-on-year and 10% quarter-on-quarter.
Positive Trading and Revenue Metrics
Commission income increased by 28% year-on-year, and the average commission per transaction rose by 9% year-over-year.
Crypto Trading and Securities Lending Progress
Initial launch of crypto trading in Germany with promising results; securities lending on track for Q4 rollout in key markets.
Negative Updates
Delayed International Rollout of Crypto Trading
The international rollout of crypto trading was delayed due to a partner's pending MiCAR license.
Interest Income Decline
Interest income declined by 10% year-on-year due to a lower interest rate environment.
Potential Headwinds from Interest Rates
Concerns about potential further cuts of interest rates by the ECB affecting future interest income.
Management Changes and Costs
Personnel measures related to management changes resulted in additional costs, with provisions impacting the financials.
Uncertain Regulatory Environment for B2B Initiatives
Negotiations for B2B services are ongoing, with no finalized contracts yet, adding uncertainty to future revenue streams.
Company Guidance
During the flatexDEGIRO Analyst Call for H1 2025 results, significant guidance was provided highlighting a record half-year performance in terms of both top and bottom-line metrics. The company is on track to achieve over EUR 0.5 billion in revenues and anticipates a 15% to 25% increase in net income. Achievements were driven by a record-setting first half, aided by market volatility and strategic platform captures, especially in U.S. trading. The company noted a substantial increase in assets under custody, reaching EUR 83 billion, marking a 37% year-on-year growth. Gross customer additions amounted to approximately 103,000, a 22% increase year-on-year. Commission income rose by 28% year-on-year, and the average commission per trade increased to EUR 4.72. Personnel expenses rose mainly due to provisions for long-term compensation, while marketing expenses decreased, reflecting cost efficiency. The company also updated its full-year guidance, expecting revenue growth of 4% to 8% and net income between EUR 128 million and EUR 139 million, indicating a strong operational leverage. Additionally, the company's ongoing strategic initiatives, including crypto trading and securities lending, are progressing with updates expected shortly.flatexDEGIRO AG Financial Statement Overview
Summary
flatexDEGIRO AG exhibits strong financial performance with solid revenue growth and improving profitability. The balance sheet is stable with increasing equity and manageable debt levels. Although cash flow from operations has declined, the company maintains a healthy free cash flow, suggesting resilience in cash management.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 | 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
Positive
28.16
Price Trends
27.57
Positive
26.04
Positive
22.52
Positive
Market Momentum
0.13
Negative
58.00
Neutral
71.38
Neutral
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 28.16 is above the 20-day moving average (MA) of 27.51, above the 50-day MA of 27.57, and above the 200-day MA of 22.52, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 71.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FTK.
flatexDEGIRO AG Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €3.08B | 23.22 | 17.14% | 0.14% | 16.56% | 17.76% | |
72 Outperform | €198.20M | 6.73 | 37.17% | 8.25% | 36.62% | 23.21% | |
71 Outperform | €298.40M | 6.33 | 12.46% | 2.11% | 15.69% | 268.17% | |
56 Neutral | €238.43M | ― | ― | ― | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
DE:FTK
flatexDEGIRO AG
28.16
14.66
108.59%
DE:EUX
EUWAX AG
47.40
14.66
44.78%
DE:BWB
Baader Bank AG
6.15
2.13
52.99%
DE:LUS1
Lang & Schwarz AG
21.20
5.24
32.83%
DE:T2G
Tradegate AG Wertpapierhandelsbank
91.50
4.20
4.81%
DE:XTP
Sino AG
102.00
48.50
90.65%
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.