Sixt SE (SIX2) AI Stock Analysis

• Market Cap: €3.40B
• Dividend Yield: 4.86%
• Average Volume (3M): 47.64K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.06
• Revenue Growth: 10.10%
• EPS Growth: -12.20%
• Country: DE
• Employees: 7,864
• Sector: Industrials
• Sector Strength: 90
• Industry: Rental & Leasing Services
• EPS (TTM): -0.27
• Shares Outstanding: 30,367,110
• 10 Day Avg. Volume: 33,388
• 30 Day Avg. Volume: 47,637
• PEG Ratio: 3.53
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.23
• 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: €105.00
• Price Target Upside: 31.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 80 Outperform
• Price Target: €94.00 ▲(17.43%Upside)

Sixt SE's solid financial performance, characterized by strong revenue growth and cash flow, is a significant strength. Technical indicators suggest moderate momentum, while valuation metrics like the P/E ratio and dividend yield provide additional support. Overall, the company is well-positioned in its industry, with a positive outlook.

Positive Factors

Expansion

Sixt is expanding in the US as well as other businesses such as subscription and Van & Truck.

Revenue Performance

Sixt's Q1 print beats revenue expectations, primarily due to stronger-than-expected average selling prices.

Travel Outlook

A solid travel outlook bares very positively for potential upgrades during the year, particularly given improved pricing discipline at peers.

Negative Factors

Economic Uncertainty

Macro uncertainty remains relatively elevated, which could impact future performance.

Recession Risk

A potential recession could lead to significant estimate cuts given pressure on volumes and rental prices, as well as residuals.

US Tariffs

Implications of US tariffs could affect the company.

Sixt SE Business Overview & Revenue Model

Company Description

Sixt SE, through its subsidiaries, provides mobility services for private and business customers in Germany and internationally. The company engages in the rental of various utility vehicles; and provision of international holiday vehicle rental, car sharing, transfer, and car subscription services. As of December 31, 2021, its corporate and franchise station network comprised approximately 900 stations. The company was founded in 1912 and is headquartered in Pullach, Germany. Sixt SE is a subsidiary of Erich Sixt Vermögensverwaltung GmbH.

How the Company Makes Money

Sixt SE generates its revenue primarily through its vehicle rental business. The company offers short-term and long-term vehicle rentals, with a diverse fleet that includes premium cars, SUVs, and vans. Revenue is driven by rental fees, which vary based on the type of vehicle, rental duration, and additional services or insurances opted by the customer. Sixt also earns income from its leasing operations, providing tailored leasing solutions to businesses and individuals. Furthermore, the company has developed strategic partnerships with airlines, hotels, and travel agencies, which help drive customer acquisition and retention. Ancillary services, such as navigation systems, child seats, and additional insurance packages, contribute to additional revenue streams.

Sixt SE Financial Statement Overview

Summary

Sixt SE demonstrates a solid financial performance with strong revenue growth of 19.32% and healthy profitability, evidenced by a gross profit margin of 61.30% and a net profit margin of 5.65%. Cash flow is particularly strong, transitioning from negative to positive free cash flow. However, there is room for improvement in operational efficiency and capital structure.

Income Statement

Sixt SE has shown strong revenue growth from 2023 to 2024, increasing by approximately 19.32%. The gross profit margin for 2024 is a robust 61.30%, and the net profit margin is 5.65%, which indicates healthy profitability. However, the net income decreased from the previous year, and the EBITDA margin of 16.21% suggests room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leverage, with a ratio of 1.47 in 2024. The return on equity is 11.46%, reflecting good profitability relative to equity. Meanwhile, the equity ratio is 32.50%, suggesting a solid equity base but potential for improved capital structure.

Cash Flow

Sixt SE shows impressive cash flow performance, with a substantial improvement in free cash flow from negative in 2023 to positive in 2024. The operating cash flow to net income ratio is strong, reflecting efficient cash conversion, and the free cash flow to net income ratio also indicates healthy cash generation relative to profits.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.38B	4.00B	3.62B	3.07B	2.28B	1.53B
	Gross Profit
2.66B	3.11B	2.84B	2.44B	1.78B	1.10B
	EBIT
11.89M	482.69M	573.20M	1.03B	801.41M	311.28M
	EBITDA
875.19M	712.47M	759.51M	737.24M	611.65M	119.37M
	Net Income Common Stockholders
254.48M	243.91M	335.14M	385.70M	313.15M	-98.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.92M	163.58M	5.92M	26.57M	265.83M	753.32M
	Total Assets
6.91B	6.55B	6.45B	5.55B	4.52B	4.43B
	Total Debt
3.30B	3.13B	3.30B	2.51B	2.00B	2.38B
	Net Debt
3.29B	2.96B	3.29B	2.48B	1.74B	1.62B
	Total Liabilities
4.91B	4.42B	4.45B	3.57B	2.77B	3.03B
	Stockholders Equity
2.00B	2.13B	2.00B	1.98B	1.75B	1.39B
Cash Flow		Free Cash Flow
652.08M	989.92M	-151.33M	-266.35M	44.09M	647.12M
	Operating Cash Flow
738.99M	1.08B	-90.07M	-201.58M	79.11M	669.28M
	Investing Cash Flow
-86.57M	-89.60M	-67.22M	-57.20M	-85.06M	12.61M
	Financing Cash Flow
-294.13M	-832.87M	136.67M	17.55M	-489.30M	-89.64M

Sixt SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SIX2, the sentiment is Positive. The current price of 80.05 is above the 20-day moving average (MA) of 79.59, above the 50-day MA of 77.79, and above the 200-day MA of 73.37, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of -3.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SIX2.

Sixt SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIX2	80 Outperform	€3.40B	14.80	12.50%	4.86%	10.10%	-12.20%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
0NRG		€2.95B	15.92	14.62%	3.04%	―	―
0EXP		€3.93B	13.55	12.41%	2.08%	―	―
0QFU		€5.80B	28.48	3.39%	1.85%	―	―
0LQ4		€4.50B	15.76	15.25%	1.82%	―	―
0O1C		€5.29B	―	-9.83%	1.76%	―	―