Sixt SE (SIX3) AI Stock Analysis

• Market Cap: €3.56B
• Dividend Yield: 4.47%
• Average Volume (3M): 18.66K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.12
• Revenue Growth: 10.10%
• EPS Growth: -12.20%
• Country: DE
• Employees: 7,864
• Sector: Industrials
• Sector Strength: 86
• Industry: Rental & Leasing Services
• EPS (TTM): -0.27
• Shares Outstanding: 16,567,245
• 10 Day Avg. Volume: 17,756
• 30 Day Avg. Volume: 18,655
• PEG Ratio: -0.29
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -35.28
• 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: €60.00
• Price Target Upside: -1.80% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: €63.00 ▲(3.11%Upside)

Sixt SE's strong financial performance, particularly in cash flow management, and its attractive valuation are significant strengths. Technical indicators present a mixed picture, with stability but weak momentum. The absence of significant earnings call updates or corporate events leaves the financial and valuation aspects as the main drivers of the score.

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 vehicle rental services, which include short-term rentals, long-term rentals, and corporate rental agreements. Key revenue streams include rental income from its fleet of premium cars, leasing contracts, and ancillary services such as insurance and additional equipment rentals. The company also makes money from its car sharing and ride-hailing services, which have been expanding through strategic partnerships and technological advancements. Sixt's earnings are bolstered by its strong presence in key international markets, brand recognition, and its ability to adapt to changing consumer demands in the mobility sector.

Sixt SE Financial Statement Overview

Summary

Sixt SE shows strong revenue growth and effective cost management, but net profitability faces challenges. The balance sheet reveals high leverage, posing a potential risk despite improved equity. Cash flow operations are strong, highlighting effective cash management and liquidity improvement. Managing leverage and enhancing net profitability are crucial 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	4.08B	4.00B	3.62B	3.07B	2.28B	1.53B
Gross Profit	3.14B	3.11B	2.84B	2.44B	1.78B	850.95M
EBITDA	875.19M	712.47M	759.51M	737.24M	611.65M	119.37M
Net Income	254.48M	243.91M	335.14M	385.70M	313.15M	-33.25M
Balance Sheet
Total Assets	7.10B	6.55B	6.45B	5.55B	4.52B	4.43B
Cash, Cash Equivalents and Short-Term Investments	391.21M	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	5.03B	4.42B	4.45B	3.57B	2.77B	3.03B
Stockholders Equity	2.07B	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: 61.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 61.1 is above the 20-day moving average (MA) of 57.21, above the 50-day MA of 56.93, and above the 200-day MA of 54.80, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 70.46 is Negative, neither overbought nor oversold. The STOCH value of 95.30 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
SIX3	72 Outperform	€3.56B	11.22	12.50%	4.47%	10.10%	-12.20%
Sector *	65 Neutral	$10.69B	15.75	5.51%	1.90%	2.72%	-26.43%
0NRG		€2.93B	15.80	14.62%	2.66%	―	―
0EXP		€4.03B	14.00	12.41%	1.73%	―	―
0QFU		€6.36B	31.26	3.39%	1.46%	―	―
0F1N		€2.04B	16.39	9.99%	1.25%	―	―
0RBK		€4.30B	21.23	-19.48%	4.72%	―	―