Sixt SE (SIX2) AI Stock Analysis

• Market Cap: €3.15B
• Dividend Yield: 3.57%
• Average Volume (3M): 27.51K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.22
• Revenue Growth: 9.68%
• EPS Growth: 17.82%
• Country: DE
• Employees: 7,864
• Sector: Services
• Sector Strength: N/A
• Industry: Rental & Leasing Services
• EPS (TTM): 1.67
• Shares Outstanding: 30,367,110
• 10 Day Avg. Volume: 36,775
• 30 Day Avg. Volume: 27,506
• PEG Ratio: -0.55
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 3.73
• 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: €105.33
• Price Target Upside: 39.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: €81.00 ▲(7.07% Upside)

Sixt SE's overall stock score is driven by its strong financial performance, particularly in cash flow generation and profitability. However, the bearish technical indicators suggest caution, as they indicate potential downward pressure on the stock price. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield, balancing the overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Sixt SE's ability to expand its market presence and enhance its service offerings, contributing to long-term business sustainability.

Cash Flow Generation

Improved cash flow generation enhances Sixt SE's financial flexibility, enabling reinvestment in growth opportunities and reducing reliance on external financing.

Profitability Margins

Strong profitability margins reflect Sixt SE's efficient cost management and pricing strategy, supporting long-term financial health and competitive positioning.

Negative Factors

Operational Efficiency

Lower operational efficiency may hinder Sixt SE's ability to maximize profit margins and compete effectively, necessitating strategic improvements.

Net Income Decline

A decline in net income could signal challenges in maintaining profitability, potentially impacting Sixt SE's ability to fund future growth initiatives.

Capital Structure

A relatively low equity ratio may limit Sixt SE's financial resilience, indicating a need for optimizing its capital structure to support sustainable growth.

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 revenue through multiple key streams, primarily by offering car rental services to individuals and businesses, which include short-term and long-term rentals. The company also earns income from its leasing division, providing vehicles to corporate clients for extended periods. Additional revenue comes from ancillary services such as insurance, fuel sales, and GPS equipment rentals. Partnerships with airlines, hotels, and travel agencies also enhance their revenue model by integrating car rental services into travel packages. Furthermore, Sixt benefits from a growing digital platform that enables online bookings, improving customer reach and operational efficiency.

Sixt SE Financial Statement Overview

Summary

Sixt SE demonstrates strong financial performance with significant revenue growth and healthy profitability margins. The cash flow is particularly impressive, showing a substantial improvement and efficient cash conversion. 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	4.15B	4.00B	3.62B	3.07B	2.28B	1.53B
Gross Profit	3.19B	3.11B	2.84B	2.44B	1.78B	850.95M
EBITDA	1.09B	712.47M	759.51M	737.24M	611.65M	119.37M
Net Income	284.63M	243.91M	335.14M	385.70M	313.15M	-33.25M
Balance Sheet
Total Assets	7.63B	6.55B	6.45B	5.55B	4.52B	4.43B
Cash, Cash Equivalents and Short-Term Investments	10.84M	163.58M	5.92M	26.57M	265.83M	753.32M
Total Debt	0.00	3.13B	3.30B	2.51B	2.00B	2.38B
Total Liabilities	5.69B	4.42B	4.45B	3.57B	2.77B	3.03B
Stockholders Equity	1.94B	2.13B	2.00B	1.98B	1.75B	1.39B
Cash Flow
Free Cash Flow	897.93M	989.92M	-151.33M	-266.35M	44.09M	647.12M
Operating Cash Flow	979.55M	1.08B	-90.07M	-201.58M	79.11M	669.28M
Investing Cash Flow	-81.29M	-89.60M	-67.22M	-57.20M	-85.06M	12.61M
Financing Cash Flow	-894.77M	-832.87M	136.67M	17.55M	-489.30M	-89.64M

Sixt SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 75.65 is below the 20-day moving average (MA) of 78.35, below the 50-day MA of 82.53, and below the 200-day MA of 81.54, indicating a bearish trend. The MACD of -2.63 indicates Positive momentum. The RSI at 33.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SIX2.

Sixt SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBF	76 Outperform	€3.50B	18.91	15.17%	2.19%	11.94%	-14.70%
KRN	73 Outperform	€3.85B	13.41	15.37%	2.03%	10.25%	20.72%
JUN3	72 Outperform	€3.12B	10.91	11.92%	2.63%	-1.50%	2.01%
SIX2	67 Neutral	€3.15B	12.48	14.91%	3.57%	9.68%	17.82%
KGX	57 Neutral	€7.19B	31.96	3.89%	1.46%	-2.50%	-32.31%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TKA	51 Neutral	€6.05B	―	-12.35%	1.27%	-4.77%	49.72%