Sixt SE (SIX2) AI Stock Analysis

• Market Cap: €2.99B
• Dividend Yield: 3.86%
• Average Volume (3M): 27.51K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.21
• Revenue Growth: 8.60%
• EPS Growth: 20.38%
• Country: DE
• Employees: 7,864
• Sector: Services
• Sector Strength: N/A
• Industry: Rental & Leasing Services
• EPS (TTM): 3.03
• 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: €102.40
• Price Target Upside: 46.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €74.00 ▲(5.79% Upside)

Sixt SE's overall stock score is primarily influenced by its strong financial performance, particularly in revenue growth and operational efficiency. However, technical indicators suggest a bearish trend, which weighs down the score. The valuation is reasonable, with a solid dividend yield, but the lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability and competitiveness.

Operational Efficiency

High gross profit margins reflect strong operational efficiency, allowing the company to maintain profitability even in competitive markets.

Return on Equity

A strong return on equity indicates effective capital utilization, which can enhance shareholder value and support future growth initiatives.

Negative Factors

Increased Leverage

Higher leverage can increase financial risk, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Declining Free Cash Flow

Declining free cash flow growth may limit the company's ability to fund operations, pay down debt, and invest in strategic initiatives.

Modest Net Profit Margin

A modest net profit margin indicates potential challenges in converting revenue into profit, which could affect long-term financial health and competitiveness.

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 primarily through its car rental and leasing services. The company earns money by charging customers for the use of vehicles on a daily or longer-term basis, with pricing based on factors such as vehicle type, rental duration, and additional options. Key revenue streams include short-term rentals, long-term leases, and corporate fleet management services. Additionally, Sixt benefits from ancillary services, such as insurance, GPS rentals, and fuel options, which provide extra income. Partnerships with travel agencies, hotels, and airlines also contribute to its earnings by driving customer bookings. Furthermore, Sixt's investment in technology and digital platforms enhances customer experience and operational efficiency, positioning the company for growth in the evolving mobility market.

Sixt SE Financial Statement Overview

Summary

Sixt SE demonstrates strong financial performance with significant revenue growth and robust profitability margins. The cash flow is particularly impressive, showing a substantial improvement 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	4.24B	4.00B	3.62B	3.07B	2.28B	1.53B
Gross Profit	3.24B	3.11B	2.84B	2.44B	1.78B	850.95M
EBITDA	1.29B	712.47M	809.94M	759.14M	611.65M	119.37M
Net Income	286.59M	243.91M	335.14M	385.70M	313.15M	-33.25M
Balance Sheet
Total Assets	7.67B	6.55B	6.45B	5.55B	4.52B	4.43B
Cash, Cash Equivalents and Short-Term Investments	37.69M	163.58M	5.92M	26.57M	265.83M	753.32M
Total Debt	4.09B	3.13B	3.30B	2.51B	2.00B	2.38B
Total Liabilities	5.56B	4.42B	4.45B	3.57B	2.77B	3.03B
Stockholders Equity	2.11B	2.13B	2.00B	1.98B	1.75B	1.39B
Cash Flow
Free Cash Flow	444.37M	989.92M	-151.33M	-266.35M	44.09M	647.12M
Operating Cash Flow	528.27M	1.08B	-90.07M	-201.58M	79.11M	669.28M
Investing Cash Flow	-83.56M	-89.60M	-67.22M	-57.20M	-85.06M	12.61M
Financing Cash Flow	-414.62M	-832.87M	136.67M	17.55M	-489.30M	-89.64M

Sixt SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 69.95 is below the 20-day moving average (MA) of 70.01, below the 50-day MA of 72.25, and below the 200-day MA of 80.00, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 25.13 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
KRN	75 Outperform	€4.21B	14.55	14.99%	1.95%	8.15%	16.17%
GBF	74 Outperform	€4.04B	21.78	14.63%	1.93%	10.17%	-20.99%
JUN3	73 Outperform	€3.57B	12.54	11.92%	2.29%	-1.50%	2.01%
KGX	69 Neutral	€8.77B	32.25	4.56%	1.23%	-2.20%	-18.16%
SIX2	64 Neutral	€2.99B	11.46	13.91%	3.86%	8.60%	20.38%
TKA	59 Neutral	€5.68B	12.22	4.81%	1.23%	-6.29%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%