Sixt SE (SIX2) AI Stock Analysis

• Market Cap: €4.01B
• Dividend Yield: 2.79%
• Average Volume (3M): 50.37K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 1.18
• Revenue Growth: 10.10%
• EPS Growth: -12.20%
• Country: DE
• Employees: 7,864
• Sector: Industrials
• Sector Strength: 94
• Industry: Rental & Leasing Services
• EPS (TTM): -0.27
• Shares Outstanding: 30,367,110
• 10 Day Avg. Volume: 76,845
• 30 Day Avg. Volume: 50,368
• PEG Ratio: 4.11
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.12
• 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: €107.00
• Price Target Upside: 10.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: €102.00 ▲(5.32%Upside)

Sixt SE exhibits a solid financial foundation with strong revenue growth and cash flow, driving the overall score. While technical indicators show bullish momentum, caution is advised due to overbought conditions. The valuation is reasonable, offering a good dividend yield, but reflects moderate growth expectations.

Positive Factors

Pricing discipline

Stable residual values and a focus on utilization and pricing discipline should support solid profitability.

Travel demand

Sixt is expected to deliver a solid performance driven by resilient travel demand, especially in Europe.

Vehicle sourcing

Sourcing of vehicles at better conditions is lowering risks to residual value for '25.

Negative Factors

Macro uncertainty

FX headwinds and macro uncertainty are challenges that Sixt is facing.

Potential recession

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

US market demand

The earnings before tax were slightly below expectations due to lower residuals from the sale of the tail end of an older fleet and somewhat weaker-than-expected demand in the US.

Sixt SE Business Overview & Revenue Model

Company Description

Sixt SE is a leading international provider of integrated mobility services, operating in the vehicle rental and leasing sectors. Headquartered in Pullach, Germany, Sixt offers a comprehensive range of services including car rental, car sharing, and long-term rental solutions across various global markets. The company is known for its extensive fleet of premium vehicles and innovative mobility solutions, catering to both corporate clients and individual consumers.

How the Company Makes Money

Sixt SE generates revenue primarily through its vehicle rental and leasing services. The company earns income by offering short-term and long-term car rentals to both business and leisure customers. Sixt also provides car leasing services, where they lease vehicles to customers for extended periods, often including additional services like maintenance and insurance. A significant portion of their revenue comes from corporate partnerships and collaborations with travel agencies, airlines, and online booking platforms, which help expand their customer base and increase rental volume. Additionally, Sixt has embraced digital transformation, leveraging its technological platforms to streamline the booking process, enhance customer experience, and optimize fleet management, further contributing to its profitability.

Sixt SE Financial Statement Overview

Summary

Sixt SE demonstrates strong financial performance with robust revenue growth of 19.32% and a healthy gross profit margin of 61.30%. Cash flow improved significantly, with free cash flow turning positive, indicating efficient cash generation and conversion. However, the net income decrease and moderate debt-to-equity ratio suggest 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.00B	3.62B	3.07B	2.28B	1.53B
Gross Profit	3.11B	2.84B	2.44B	1.78B	850.95M
EBITDA	712.47M	759.51M	737.24M	611.65M	119.37M
Net Income	243.91M	335.14M	385.70M	313.15M	-33.25M
Balance Sheet
Total Assets	6.55B	6.45B	5.55B	4.52B	4.43B
Cash, Cash Equivalents and Short-Term Investments	163.58M	5.92M	26.57M	265.83M	753.32M
Total Debt	3.13B	3.30B	2.51B	2.00B	2.38B
Total Liabilities	4.42B	4.45B	3.57B	2.77B	3.03B
Stockholders Equity	2.13B	2.00B	1.98B	1.75B	1.39B
Cash Flow
Free Cash Flow	989.92M	-151.33M	-266.35M	44.09M	647.12M
Operating Cash Flow	1.08B	-90.07M	-201.58M	79.11M	669.28M
Investing Cash Flow	-89.60M	-67.22M	-57.20M	-85.06M	12.61M
Financing Cash Flow	-832.87M	136.67M	17.55M	-489.30M	-89.64M

Sixt SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 96.85 is above the 20-day moving average (MA) of 89.39, above the 50-day MA of 82.81, and above the 200-day MA of 77.10, indicating a bullish trend. The MACD of 4.41 indicates Negative momentum. The RSI at 69.93 is Neutral, neither overbought nor oversold. The STOCH value of 65.05 is Neutral, 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	78 Outperform	€4.01B	17.79	12.50%	2.79%	10.10%	-12.20%
GBF	78 Outperform	€3.48B	18.60	14.62%	2.24%	15.42%	-6.80%
KRN	74 Outperform	€4.41B	15.38	15.25%	1.86%	14.42%	26.41%
Sector *	67 Neutral	€8.35B	21.10	6.46%	2.82%	1.93%	-39.22%
JUN3	65 Neutral	€3.42B	11.71	12.41%	2.39%	-2.78%	-3.44%
KGX	64 Neutral	€6.86B	34.10	3.39%	1.57%	-0.69%	-40.58%
TKA	56 Neutral	€6.94B	―	-9.83%	1.38%	-4.07%	56.41%