LEG Immobilien (LEG) AI Stock Analysis

• Market Cap: €4.18B
• Dividend Yield: 4.45%
• Average Volume (3M): 178.45K
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.32
• 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): -5.16
• Shares Outstanding: 75,570,800
• 10 Day Avg. Volume: 167,519
• 30 Day Avg. Volume: 178,450
• PEG Ratio: <0.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 10.53
• 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: €81.28
• Price Target Upside: 46.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 6.22
• Revenue Forecast (FY): €955.52M

• Rating: 63 Neutral
• Price Target: €61.00 ▲(10.21% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is anchored by solid financial durability (positive cash flow despite volatile earnings) and an attractive valuation (very low P/E and strong dividend yield). These positives are balanced by weak technicals (price below key moving averages with negative momentum) and moderate execution risks noted on the earnings call, including higher interest costs and disposal-market friction.

Positive Factors

Cash Generation

LEG's recurring rental model delivers stable operating and free cash flow despite earnings volatility. Consistent cash generation underpins the company's ability to fund maintenance/modernization, sustain dividends, service debt, and finance selective value‑add investments without relying solely on volatile valuation gains.

Occupancy and Rent Momentum

Ultra-low vacancy and steady like‑for‑like rent uplifts show durable demand in LEG's core North Rhine‑Westphalia portfolio. High occupancy and ongoing rent growth support recurring revenue stability, provide pricing leverage within regulated markets, and improve predictability of rental cash flows over the medium term.

Improving Liquidity and LTV

Progress toward target LTV and a large liquidity buffer (drawn/undrawn facilities) lengthen refinancing runway and reduce short‑term funding pressure. Strong interest coverage and multi‑year average maturities provide flexibility to execute capex, disposals and deleveraging while managing refinancing risk over the next 2–6 months.

Negative Factors

Structural Leverage

LEG's balance sheet reflects typical sector leverage, but sustained debt levels near or above equity increase sensitivity to interest rates and property valuations. High structural leverage constrains strategic flexibility, raises refinancing exposure, and can amplify earnings swings when market yields or asset values move unfavorably.

Earnings Volatility

Large swings in reported profits—driven by valuation and non‑recurring items—reduce the predictability of earnings and complicate cash‑flow forecasting. This volatility limits the reliability of accounting profit as a guide to long‑term cash returns and can pressure investor confidence and dividend consistency during adverse market cycles.

Financing & Disposal Headwinds

Rising interest expense and tighter transaction markets lengthen disposal timelines and reduce net proceeds from sales. Combined, these structural headwinds increase funding costs and constrain the company's capacity to recycle capital, slowing deleveraging and raising refinancing risk for upcoming maturities.

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 primarily makes money from rental operations: it earns recurring income from residential tenants through contract rents, plus ancillary recoverable service charges (e.g., operating and heating-related costs that are billed to tenants where permitted). A key driver of earnings is active asset management—vacancy reduction, rent increases within regulatory and contractual constraints, and tenant retention—combined with modernization and energy-efficiency investments that can support higher rents (where legally allowed) and/or lower operating costs. The company also generates revenue from property-related services and other operating income linked to managing its portfolio (exact breakdown not provided here). In addition, LEG can realize profits from the disposal of selected properties or non-core assets (portfolio optimization), though such sales are typically more volatile than recurring rental income. Financing structure affects net earnings materially: like most real estate companies, LEG uses debt funding; therefore interest expense, refinancing conditions, and hedging can influence profitability, while property revaluations can affect reported results (fair-value changes are accounting-driven and not cash rental income). If any specific major partnerships or counterparties are material, they are not available here and are therefore null.

LEG Immobilien Financial Statement Overview

Summary

Steady revenue growth and consistently positive operating/free cash flow support underlying resilience. Offsetting this are highly volatile profitability (large 2023 loss then sharp rebound) and structural leverage typical for real estate, which can amplify valuation and earnings swings.

Income Statement

Revenue has grown steadily from 2020 to 2025, with the strongest recent step-up in 2025. However, profitability is highly volatile: 2023 showed a very large loss, followed by a sharp rebound in 2024–2025. The very high profit and operating margins in several years suggest earnings are materially influenced by non-recurring or valuation-driven swings, reducing predictability despite the improving top-line trend.

Balance Sheet

The balance sheet shows sizable leverage typical for real estate, with debt generally around or above equity (debt-to-equity roughly ~0.8x to ~1.3x across the period). Equity is meaningful in absolute size, but leverage remains a structural constraint and return on equity is inconsistent—strong in some years, negative in 2023, and very low in 2024—highlighting sensitivity to asset values and earnings volatility.

Cash Flow

Cash generation appears relatively steady versus the volatility in reported earnings: operating cash flow and free cash flow are consistently positive each year, and free cash flow broadly tracks operating cash flow. Free cash flow growth is uneven (including a decline in 2024), and in years with exceptionally high net income, cash flow does not rise proportionately—indicating that reported profits are not always cash-backed to the same degree.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.49B	1.30B	1.24B	1.15B	961.70M
Gross Profit	556.30M	621.40M	579.70M	412.10M	521.60M
EBITDA	1.32B	341.10M	-1.80B	509.10M	376.00M
Net Income	1.46B	66.00M	-1.57B	234.00M	1.72B
Balance Sheet
Total Assets	21.16B	19.59B	19.30B	21.36B	20.55B
Cash, Cash Equivalents and Short-Term Investments	756.50M	305.80M	277.50M	360.50M	673.60M
Total Debt	10.16B	9.72B	9.38B	9.46B	8.89B
Total Liabilities	12.40B	12.19B	11.82B	12.28B	11.60B
Stockholders Equity	8.69B	7.37B	7.46B	9.06B	8.93B
Cash Flow
Free Cash Flow	443.40M	417.70M	432.40M	311.10M	342.40M
Operating Cash Flow	462.40M	436.50M	447.90M	389.00M	353.70M
Investing Cash Flow	232.90M	-604.20M	-421.50M	-1.06B	-2.75B
Financing Cash Flow	-245.70M	197.10M	-111.10M	356.40M	2.74B

LEG Immobilien Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.35
• 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 55.35 is below the 20-day moving average (MA) of 64.16, below the 50-day MA of 63.66, and below the 200-day MA of 67.08, indicating a bearish trend. The MACD of -1.94 indicates Positive momentum. The RSI at 28.30 is Positive, neither overbought nor oversold. The STOCH value of 11.94 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
GYC	70 Outperform	€1.52B	3.69	11.82%	―	0.44%	―
PAT	69 Neutral	€594.04M	45.83	―	4.33%	0.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LEG	63 Neutral	€4.18B	3.20	18.02%	4.45%	6.91%	―
AT1	58 Neutral	€2.51B	4.09	7.69%	―	-1.35%	―
O5G	53 Neutral	€6.28B	75.97	-0.36%	―	-9.44%	96.54%
VNA	52 Neutral	€18.19B	2.37	11.30%	5.08%	22.80%	―