Sixt SE (SIX3) AI Stock Analysis

• Market Cap: €3.40B
• Dividend Yield: 6.7%
• Average Volume (3M): 25.44K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.01
• Revenue Growth: 10.10%
• EPS Growth: -12.20%
• Country: DE
• Employees: 7,864
• Sector: Industrials
• Sector Strength: 90
• Industry: Rental & Leasing Services
• EPS (TTM): -0.27
• Shares Outstanding: 16,567,245
• 10 Day Avg. Volume: 22,990
• 30 Day Avg. Volume: 25,436
• PEG Ratio: -0.72
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.81
• 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: 2.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ―

Sixt SE demonstrates strong financial performance, particularly in revenue growth and cash flow management, though high leverage and challenges in net profitability are concerns. Technical indicators are mixed, with a neutral to slightly bearish short-term trend. Valuation is compelling with a reasonable P/E ratio and an attractive dividend yield. Overall, the stock holds a solid position with potential for income-focused investors, but caution is advised due to leverage and profitability challenges.

Sixt SE Business Overview & Revenue Model

Company Description

Sixt SE (SIX3) is a global mobility service provider headquartered in Pullach, Germany. The company operates in the vehicle rental, car sharing, ride-hailing, and leasing sectors, offering a wide range of mobility solutions to both corporate and individual customers. Sixt is renowned for its premium fleet of vehicles, extensive network of rental locations, and innovative digital services, which enhance the customer experience and streamline the rental process.

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 exhibits strong revenue growth and effective cost management, though net profitability faces challenges. The balance sheet reveals a high leverage level, which is 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
4.08B	4.00B	3.62B	3.07B	2.28B	1.53B
	Gross Profit
2.64B	3.11B	2.84B	2.44B	1.78B	1.10B
	EBIT
494.58M	482.69M	573.20M	1.03B	801.41M	311.28M
	EBITDA
875.19M	712.47M	759.51M	737.24M	611.65M	119.37M
	Net Income Common Stockholders
254.48M	243.91M	335.14M	385.70M	313.15M	-98.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
276.55M	163.58M	5.92M	26.57M	265.83M	753.32M
	Total Assets
5.04B	6.55B	6.45B	5.55B	4.52B	4.43B
	Total Debt
1.93B	3.13B	3.30B	2.51B	2.00B	2.38B
	Net Debt
1.66B	2.96B	3.29B	2.48B	1.74B	1.62B
	Total Liabilities
3.65B	4.42B	4.45B	3.57B	2.77B	3.03B
	Stockholders Equity
1.27B	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: 58.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 58.6 is above the 20-day moving average (MA) of 57.29, above the 50-day MA of 54.71, and above the 200-day MA of 54.16, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, 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	78 Outperform	€2.83B	15.31	14.62%	3.05%	15.42%	-6.80%
KWS	76 Outperform	€1.93B	15.56	9.99%	1.69%	-19.73%	-13.98%
SIX3	74 Outperform	€3.40B	10.70	12.50%	6.70%	10.10%	-12.20%
JUN3	72 Outperform	€3.93B	13.59	12.41%	2.08%	-2.78%	-3.44%
KGX	71 Outperform	€5.80B	28.48	3.39%	1.85%	-0.69%	-40.58%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
SHA0	64 Neutral	€3.95B	22.28	-19.48%	5.97%	23.27%	-280.44%