Sixt SE (SIX3) AI Stock Analysis

• Market Cap: €3.14B
• Dividend Yield: 5.21%
• Average Volume (3M): 13.91K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.16
• Revenue Growth: 8.60%
• EPS Growth: 20.38%
• Country: DE
• Employees: 7,864
• Sector: General
• Sector Strength: N/A
• Industry: Rental & Leasing Services
• EPS (TTM): 3.03
• Shares Outstanding: 16,567,245
• 10 Day Avg. Volume: 18,051
• 30 Day Avg. Volume: 13,913
• PEG Ratio: -0.41
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 2.75
• 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: €63.00
• Price Target Upside: 17.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €56.00 ▲(4.87% Upside)

Sixt SE's stock score is primarily driven by its strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, bearish technical indicators and cash flow challenges weigh down the overall score. The absence of earnings call and corporate events data limits the analysis to these factors.

Positive Factors

Revenue Growth

Sixt SE's strong revenue growth indicates a robust demand for its services and effective market penetration, supporting long-term business expansion.

Operational Efficiency

A high gross profit margin reflects efficient cost management, allowing Sixt SE to maintain profitability and invest in growth opportunities.

Market Position

As a leading player in the mobility sector, Sixt SE benefits from brand recognition and a strong competitive position, facilitating sustained growth.

Negative Factors

Debt Reliance

High reliance on debt could limit financial flexibility and increase risk, especially if interest rates rise or economic conditions worsen.

Cash Flow Challenges

Declining free cash flow growth may hinder Sixt SE's ability to fund new investments or manage debt, affecting long-term financial health.

Moderate Net Profit Margin

A moderate net profit margin suggests potential inefficiencies in cost control or pricing, which could impact profitability if not addressed.

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. The primary source is the car rental service, where customers pay for vehicle rentals by the hour, day, or week. This includes both traditional rental services and premium options. Additionally, Sixt earns revenue from its leasing services, which involve long-term vehicle leasing agreements with corporate clients. The company also benefits from ancillary services such as insurance, GPS rental, and additional driver fees. Partnerships with airlines, hotels, and travel agencies enhance Sixt's visibility and customer base, driving more bookings. Moreover, Sixt's expansion into digital mobility solutions, including ride-sharing and car-sharing services, represents a growing revenue stream as urban mobility trends evolve.

Sixt SE Financial Statement Overview

Summary

Sixt SE exhibits strong revenue growth and effective cost management, though net profitability faces challenges. The balance sheet reveals a high leverage level, a potential risk despite improved equity. Cash flow operations are particularly strong, showcasing effective cash management and liquidity improvement. While the company shows growth and stability in several areas, managing leverage and enhancing net profitability are key focus areas for sustained financial health.

Income Statement

Sixt SE has demonstrated significant revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin is strong, indicating effective cost management, with a margin of around 77.7% in 2024. However, the net profit margin has seen a decline, from 9.3% in 2023 to 6.1% in 2024, signaling challenges in maintaining net profitability. The EBIT and EBITDA margins remain healthy, though there's a slight decrease in EBIT margin, emphasizing operational efficiency. Overall, the income statement reflects robust revenue growth but some pressure on net profitability.

Balance Sheet

The balance sheet shows an increase in stockholders' equity, indicating stronger capital structure. However, the debt-to-equity ratio remains high at approximately 1.47, suggesting significant leverage. The equity ratio improved to around 32.5%, reflecting a slightly better asset base funded by equity. Return on equity has decreased to 11.5% in 2024 from 16.7% in 2023, which could be a concern for investors seeking efficiency in equity use. Overall, Sixt SE has a stable balance sheet with a high leverage risk.

Cash Flow

Sixt SE's cash flow statement is strong, with a remarkable turnaround in free cash flow from a negative in 2023 to a positive in 2024, demonstrating enhanced cash generation. The operating cash flow to net income ratio is robust, indicating effective conversion of income into cash. Additionally, the free cash flow to net income ratio suggests good cash availability relative to net earnings. Overall, the cash flow performance is commendable, highlighting improved liquidity and operational cash generation.

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: Positive
• Last Price: 53.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SIX3, the sentiment is Positive. The current price of 53.4 is above the 20-day moving average (MA) of 52.32, above the 50-day MA of 52.73, and below the 200-day MA of 56.57, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 73.61 is Negative, neither overbought nor oversold. The STOCH value of 95.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SIX3.

Sixt SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBF	74 Outperform	€4.29B	23.13	14.63%	1.93%	10.17%	-20.99%
KWS	74 Outperform	€2.40B	55.53	11.16%	1.85%	-7.03%	-70.17%
JUN3	73 Outperform	€3.76B	13.21	11.92%	2.29%	-1.50%	2.01%
KGX	69 Neutral	€8.88B	32.66	4.56%	1.23%	-2.20%	-18.16%
SIX3	68 Neutral	€3.14B	9.17	13.91%	5.21%	8.60%	20.38%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SHA0	52 Neutral	€8.65B	-6.13	-34.39%	3.15%	45.16%	-790.24%