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LEG Immobilien (DE:LEG)
XETRA:LEG
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LEG Immobilien
(XETRA:LEG)
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Select Model
Rating:71Outperform
Price Target:
€76.00
▲(13.01% Upside)
LEG Immobilien's strong financial performance, characterized by revenue growth and improved profitability, is the primary driver of the stock's score. The valuation is attractive with a low P/E ratio and a solid dividend yield, enhancing its appeal. Technical analysis indicates moderate upward momentum, although caution is advised due to potential overbought conditions.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a robust business model and effective market positioning, enhancing long-term income potential.
Cash Generation
Strong cash generation supports operational flexibility and investment capacity, crucial for sustaining growth and managing debt.
Profitability Improvement
Improved profitability reflects efficient cost management and pricing strategies, strengthening financial health and shareholder returns.
Negative Factors
Operational Challenges
Fluctuating EBIT margins may indicate inefficiencies or market pressures, potentially impacting future profitability and operational stability.
Cash Flow Conversion
Low cash flow conversion from net income suggests potential issues in cash management, which could affect liquidity and investment capacity.
Modest Return on Equity
Modest ROE indicates limited efficiency in generating returns from equity, which may affect investor confidence and capital attraction.
LEG Immobilien (LEG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€5.08B
Dividend Yield4.01%
Average Volume (3M)178.45K
Price to Earnings (P/E)8.5
Beta (1Y)0.32
Revenue Growth5.99%
EPS GrowthN/A
CountryDE
Employees1,920
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)1.22
Shares Outstanding75,570,800
10 Day Avg. Volume167,519
30 Day Avg. Volume178,450
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€88.60Price Target Upside31.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
LEG Immobilien Business Overview & Revenue Model
Company DescriptionLEG 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 MoneyLEG Immobilien generates revenue through multiple streams primarily derived from its rental operations. The company's key revenue source is rental income from its extensive portfolio of residential properties, which includes long-term lease agreements with tenants. Additionally, LEG earns income from property management services and ancillary revenues such as maintenance fees and service charges. The company's focus on strategic acquisitions and developments in high-demand urban areas further enhances its income potential. Partnerships with local authorities and housing agencies also contribute to its earnings, particularly in the context of social housing initiatives and urban development projects.
LEG Immobilien Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive with strong financial performance indicators such as AFFO and EBITDA growth, alongside successful integration of BCP. However, the increase in leverage and slow investment ramp-up present challenges.Q1-2025 Updates
Positive Updates
Strong AFFO Growth
AFFO increased by a strong 28.2% to EUR 62.3 million, driven by strong performance and BCP integration.
Net Cold Rent Increase
Net cold rent grew by 7.2% or EUR 15.4 million to EUR 229.5 million, with BCP contributing EUR 12.3 million.
Positive EBITDA Margin Improvement
The adjusted EBITDA rose by 10% to EUR 173.4 million, with the EBITDA margin improving by 200 basis points to 75.6%.
Robust Disposal Program
Successfully disposed of 1,500 units in Q1 with proceeds of EUR 125 million, and a robust transaction market in Germany.
Successful BCP Integration
BCP is operationally and financially fully integrated, with refinanced two-thirds of BCP's financing, supporting rental growth.
Negative Updates
Increased Leverage
LTV increased slightly to 48.4% due to the full consolidation of BCP, raising concerns about leverage levels.
Slow Investment Ramp-Up
Investments per square meter were lower than expected at EUR 7.51, slightly declining by 0.9% and behind the annual run rate.
Geopolitical and Macroeconomic Risks
Despite geopolitical tensions and macroeconomic risks, the company anticipates robust transaction activity.
Company Guidance
During the Q1 2025 earnings call, LEG Immobilien AG's management provided guidance indicating a robust outlook for the fiscal year, with an expected bottom-line growth of 7%. Key metrics highlighted include a strong net cold rent increase of over 7%, which, alongside the full integration of BCP, contributed to a 28% boost in AFFO. Despite a sluggish start in investments compared to Q1 2024, the company reaffirmed its investment guidance of at least EUR 35 per square meter for the full year. Furthermore, they projected a like-for-like rent increase of 3.4% to 3.6%, and over 4% for their free finance portfolio. The company's LTV slightly rose to 48.4%, attributed to technical accounting effects and the full consideration of BCP. The company remains committed to reducing its LTV to 45% through an ongoing disposal program targeting around 5,000 units. Despite geopolitical and macroeconomic challenges, transaction activity in the German residential market remains strong, underpinned by stable cash flows and an anticipated value increase of 0.5% to 1% in H1 2025.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.75
Positive
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.65
Positive
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.35B | 1.30B | 1.24B | 1.15B | 961.70M | 860.80M |
| Gross Profit | 648.50M | 621.40M | 579.70M | 412.10M | 521.60M | 427.20M |
| EBITDA | 1.02B | 341.10M | -1.80B | 509.10M | 376.00M | 401.10M |
| Net Income | 599.00M | 66.00M | -1.57B | 234.00M | 1.72B | 1.36B |
Balance Sheet | ||||||
| Total Assets | 20.65B | 19.59B | 19.30B | 21.36B | 20.55B | 15.28B |
| Cash, Cash Equivalents and Short-Term Investments | 633.60M | 305.80M | 277.50M | 360.50M | 673.60M | 332.90M |
| Total Debt | 10.03B | 9.72B | 9.38B | 9.46B | 8.89B | 5.87B |
| Total Liabilities | 12.90B | 12.19B | 11.82B | 12.28B | 11.60B | 7.89B |
| Stockholders Equity | 7.69B | 7.37B | 7.46B | 9.06B | 8.93B | 7.37B |
Cash Flow | ||||||
| Free Cash Flow | 412.50M | 417.70M | 432.40M | 311.10M | 342.40M | 310.50M |
| Operating Cash Flow | 435.00M | 436.50M | 447.90M | 389.00M | 353.70M | 326.10M |
| Investing Cash Flow | -168.50M | -604.20M | -421.50M | -1.06B | -2.75B | -1.33B |
| Financing Cash Flow | 141.50M | 197.10M | -111.10M | 356.40M | 2.74B | 890.30M |
LEG Immobilien Technical Analysis
Negative
67.25
Price Trends
68.68
Negative
70.60
Negative
70.86
Negative
Market Momentum
0.13
Positive
41.32
Neutral
24.53
Neutral
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 67.25 is below the 20-day moving average (MA) of 68.29, below the 50-day MA of 68.68, and below the 200-day MA of 70.86, indicating a bearish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 24.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:LEG.
LEG Immobilien Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | €5.08B | 8.53 | 8.02% | 4.01% | 5.99% | ― | |
| ― | €1.90B | 4.66 | 11.68% | ― | 0.19% | ― | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | €3.47B | 4.77 | 9.56% | ― | -1.82% | ― | |
| ― | €651.56M | 30.08 | 2.00% | 4.75% | -9.25% | ― | |
| ― | €22.41B | 59.75 | 1.29% | 4.49% | 28.86% | ― | |
| ― | €6.61B | ― | -0.39% | ― | -9.69% | 97.58% |
* Real Estate Sector Average
DE:LEG
LEG Immobilien
67.25
-16.47
-19.67%
DE:PAT
Patrizia Immobilien
7.37
-0.08
-1.05%
DE:VNA
Vonovia
26.66
-2.25
-7.80%
DE:AT1
Aroundtown SA
3.13
0.40
14.65%
DE:GYC
Grand City Properties SA
11.08
-1.08
-8.88%
DE:O5G
CPI PROPERTY GROUP S.A.
0.79
0.00
0.00%
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.