LEG Immobilien (LEG) AI Stock Analysis

• Market Cap: €4.84B
• Dividend Yield: 4.44%
• Average Volume (3M): 178.45K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.12
• Revenue Growth: 6.91%
• EPS Growth: N/A
• Country: DE
• Employees: 1,920
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 8.50
• Shares Outstanding: 75,570,800
• 10 Day Avg. Volume: 167,519
• 30 Day Avg. Volume: 178,450
• PEG Ratio: -0.88
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 4.66
• P/FCF Ratio: 14.55
• 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: €87.23
• Price Target Upside: 43.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €71.00 ▲(16.78% Upside)

LEG Immobilien's overall stock score is driven by strong financial performance and positive earnings call sentiment. The stock's attractive valuation further supports the score, despite bearish technical indicators suggesting short-term challenges. The company's strategic focus on cash generation and balance sheet strength is a positive long-term factor.

Positive Factors

Strong Profitability

LEG Immobilien's strong profitability, highlighted by a high net profit margin, indicates efficient cost management and robust financial health, which are crucial for sustaining long-term business operations and competitiveness in the real estate sector.

AFFO Growth

The anticipated growth in AFFO reflects the company's focus on cash generation, which supports its ability to reinvest in property development and maintain financial stability, ensuring long-term shareholder value.

Positive Rating Outlook

The positive rating outlook from Moody's underscores LEG Immobilien's strong balance sheet management and strategic focus on maintaining financial health, enhancing its credibility and attractiveness to investors.

Negative Factors

Modest Revenue Growth

The modest revenue growth suggests limited top-line expansion, which may hinder the company's ability to scale operations and compete effectively in the long term, potentially impacting future profitability.

Higher Interest Costs

Rising interest costs can strain cash flows and reduce financial flexibility, posing a risk to LEG Immobilien's ability to finance new projects and manage existing debt efficiently over time.

Decrease in Subsidies

A decrease in subsidies could impact LEG Immobilien's financial support for new projects, potentially limiting growth opportunities and affecting long-term strategic initiatives in property development.

LEG Immobilien Business Overview & Revenue Model

Company Description

LEG Immobilien AG, together with its subsidiaries, operates as an integrated property company in Germany. The company engages in the performance of services and management of equity investments; property management and location development; performance of services for third parties and housing industry services; and generation of electricity and heat. It also provides IT and management services for third-party. As of December 31, 2021, the company's property portfolio consisted of 166,189 residential units; 1,576 commercial units; and 45,438 garages and parking spaces in North Rhine-Westphalia. LEG Immobilien AG was founded in 1970 and is headquartered in Düsseldorf, Germany.

How the Company Makes Money

LEG Immobilien generates revenue primarily through rental income from its extensive portfolio of residential properties. The company benefits from stable cash flows due to long-term lease agreements with tenants, which provide a consistent revenue stream. Additionally, LEG engages in property development and refurbishment projects that can lead to increased property values and higher rental yields. The company may also earn income through ancillary services related to property management. Strategic partnerships with local authorities, construction firms, and real estate service providers play a crucial role in enhancing its operational efficiency and expanding its market reach, further contributing to its overall earnings.

LEG Immobilien Financial Statement Overview

Summary

LEG Immobilien demonstrates strong revenue growth and improved profitability in the TTM, with a stable balance sheet and effective cash flow management. While there are some operational challenges, the company maintains a healthy financial position with potential for continued growth.

Income Statement

LEG Immobilien shows strong revenue growth with a TTM increase of 1.76% and a consistent gross profit margin around 48%. The net profit margin improved significantly in the TTM to 19% from 5% in the previous year, indicating enhanced profitability. However, the EBIT margin has fluctuated, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.30 from 1.32, indicating a slight reduction in leverage. Return on equity remains modest at 3.41% in the TTM, reflecting stable but not exceptional returns. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

Free cash flow growth is positive at 4.94% in the TTM, showing improved cash generation. The operating cash flow to net income ratio is low at 0.13, indicating potential challenges in converting income to cash. However, the free cash flow to net income ratio is strong at 0.95, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.30B	1.24B	1.15B	961.70M	860.80M
Gross Profit	663.40M	621.40M	579.70M	412.10M	521.60M	427.20M
EBITDA	1.05B	341.10M	-1.80B	509.10M	376.00M	401.10M
Net Income	1.19B	66.00M	-1.57B	234.00M	1.72B	1.36B
Balance Sheet
Total Assets	20.46B	19.59B	19.30B	21.36B	20.55B	15.28B
Cash, Cash Equivalents and Short-Term Investments	407.80M	305.80M	277.50M	360.50M	673.60M	332.90M
Total Debt	9.89B	9.72B	9.38B	9.46B	8.89B	5.87B
Total Liabilities	12.03B	12.19B	11.82B	12.28B	11.60B	7.89B
Stockholders Equity	8.38B	7.37B	7.46B	9.06B	8.93B	7.37B
Cash Flow
Free Cash Flow	440.50M	417.70M	432.40M	311.10M	342.40M	310.50M
Operating Cash Flow	463.10M	436.50M	447.90M	389.00M	353.70M	326.10M
Investing Cash Flow	119.00M	-604.20M	-421.50M	-1.06B	-2.75B	-1.33B
Financing Cash Flow	-637.20M	197.10M	-111.10M	356.40M	2.74B	890.30M

LEG Immobilien Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LEG, the sentiment is Negative. The current price of 60.8 is below the 20-day moving average (MA) of 63.56, below the 50-day MA of 65.59, and below the 200-day MA of 69.05, indicating a bearish trend. The MACD of -1.12 indicates Positive momentum. The RSI at 28.00 is Positive, neither overbought nor oversold. The STOCH value of 7.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:LEG.

LEG Immobilien Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEG	70 Outperform	€4.84B	4.06	15.11%	4.44%	6.91%	―
PAT	69 Neutral	€616.36M	28.46	―	4.26%	0.23%	―
GYC	68 Neutral	€1.82B	4.47	14.70%	―	0.44%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AT1	59 Neutral	€3.34B	4.60	10.60%	―	-1.35%	―
VNA	58 Neutral	€21.69B	56.23	10.56%	5.04%	22.80%	―
O5G	50 Neutral	€6.57B	―	-0.56%	―	-9.44%	96.54%