Villeroy & Boch (VIB3) AI Stock Analysis

• Market Cap: €442.31M
• Dividend Yield: 5.56%
• Average Volume (3M): 4.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 18.21%
• EPS Growth: -66.72%
• Country: DE
• Employees: 12,827
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.23
• Shares Outstanding: 14,044,800
• 10 Day Avg. Volume: 3,864
• 30 Day Avg. Volume: 4,013
• PEG Ratio: 0.20
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 5.14
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.17
• Revenue Forecast (FY): €1.41B

• Rating: 48 Neutral
• Price Target: €17.00 ▲(7.94% Upside)
• Action: Reiterated Date: 03/23/26
• Date: Action: Reiterated 03/23/26

The score is held back primarily by weakened profitability and elevated leverage despite a rebound in 2025 cash generation. Technicals add further pressure due to a clear downtrend and bearish momentum. Valuation is mixed, with a strong dividend yield offset by a negative P/E tied to depressed earnings.

Positive Factors

Brand & Diversified Product Portfolio

A long-established brand (since 1748) with a diversified product set across tableware, bathroom solutions and tiles provides durable market position and pricing power. Broad B2C and B2B channels (retail, hospitality, construction) smooth revenue cycles and support long-term resilience.

Rebound in Cash Generation

A meaningful 2025 cash-flow rebound strengthens financial flexibility: higher FCF funds capex, dividends and debt reduction. Consistent positive cash generation, if sustained, materially reduces refinancing risk and enables strategic investment despite prior earnings volatility.

Top-line Recovery

Revenue recovery to ~€1.4B shows demand resilience and a restored sales base after earlier weakness. A stable or growing top line supports scale benefits and creates a platform for margin improvement if cost control and product mix are managed effectively over the medium term.

Negative Factors

Elevated Leverage

Materially higher debt and a more debt-heavy capital structure reduce strategic flexibility and raise interest burden. With equity roughly flat and profitability compressed, elevated leverage heightens refinancing and covenant risk and limits ability to invest or absorb future shocks.

Compressed Profitability

A sharp decline in net income and operating profit indicates sustained margin pressure from pricing, mix or cost increases. Lower profitability undermines return on equity and free-cashflow sustainability, constraining reinvestment capacity and the firm’s ability to deleverage over the medium term.

Volatile Cash Conversion

Significant year-to-year swings in cash conversion complicate forecasting and capital planning. Volatility in FCF raises the risk that improved 2025 cash generation may not persist, making consistent debt repayment, dividend policy and strategic investments less certain.

Villeroy & Boch Business Overview & Revenue Model

Company Description

Villeroy & Boch AG, together with its subsidiaries, manufactures and sells ceramic products primarily under the Villeroy & Boch brand in Germany, rest of Europe, and internationally. It operates through two divisions, Bathroom and Wellness, and Dining & Lifestyle divisions. The Bathroom and Wellness division manufactures ceramic sanitary ware, ceramic kitchen sinks, bathroom furniture, bathtubs and shower tubs, whirlpools, bath and kitchen fittings, and accessories. The Dining & Lifestyle provides tableware, and glass and cutlery for tables, as well as accessories, gifts, and clever to go solutions made of porcelain. It also offers tiles, fittings, wooden flooring, lighting, kitchen and bathroom textiles, and kitchen furniture, as well as furniture for living, dining, and sleeping areas. The company sells its products through a network of approximately 90 Villeroy & Boch stores and 500 points of sale facilities at department stores, as well as through its online shops. It serves dealers, craftsmen, architects, interior designers, planners, porcelain retailers, department store chains, e-commerce providers, and residential constructors, as well as operators of hotels and restaurants. Villeroy & Boch AG was founded in 1748 and is headquartered in Mettlach, Germany.

How the Company Makes Money

Villeroy & Boch generates revenue primarily through the sale of its diverse range of ceramic products across various segments, including tableware, bathroom solutions, and tiles. Key revenue streams include direct sales to consumers through retail channels, as well as business-to-business sales to hospitality and construction industries. The company also leverages partnerships with retailers and distributors to expand its market reach. Additionally, Villeroy & Boch benefits from brand recognition and loyalty, which contributes to consistent sales. Seasonal promotions, new product launches, and participation in trade fairs further enhance their revenue potential.

Villeroy & Boch Financial Statement Overview

Summary

Revenue recovered to ~€1.4B but turned slightly negative in 2025 (-2.8%). Profitability compressed sharply versus 2021–2023 (net income down to €5.9M in 2024 and €14.7M in 2025). Balance sheet risk increased with materially higher leverage (debt peaked at €531M in 2024 and remains elevated), partially offset by a strong 2025 cash flow rebound (FCF ~€85.6M).

Income Statement

Revenue rebounded strongly from 2023 to 2024–2025 (back to ~€1.4B), but growth is now slightly negative in 2025 (-2.8%). Profitability has compressed materially versus 2021–2023: net income fell from ~€60–71M (2021–2022) and €60.7M (2023) to €5.9M (2024) and €14.7M (2025). Operating profit also declined versus prior peak levels, indicating weaker pricing/premix and/or cost pressure. Strength is the top-line recovery; weakness is the sharp drop in bottom-line performance and overall margin deterioration versus earlier years.

Balance Sheet

Leverage has increased significantly: total debt rose from €127M (2022) / €255M (2023) to €531M (2024) before easing to €454M (2025), while equity stayed roughly flat (~€360–384M). This pushes the capital structure to a more debt-heavy profile (debt-to-equity was 1.46x in 2024 versus 0.35x in 2022). Total assets expanded as well, but returns to shareholders weakened sharply alongside earnings (return on equity was very low in 2024). Strength is a still-material equity base; weakness is the step-up in leverage and reduced profitability cushion.

Cash Flow

Cash generation improved meaningfully in 2025: operating cash flow rose to €122.9M and free cash flow to €85.6M (a strong rebound from near-breakeven free cash flow in 2024). However, 2024 showed weak cash conversion and very low free cash flow relative to earnings, highlighting volatility year-to-year. Strength is the 2025 cash flow rebound and healthy absolute free cash flow; weakness is the instability of free cash flow across periods and the prior-year drop.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.45B	1.42B	901.90M	994.50M	945.00M
Gross Profit	540.20M	534.00M	392.20M	425.50M	418.30M
EBITDA	131.90M	119.00M	143.20M	142.30M	136.00M
Net Income	14.70M	5.90M	60.70M	71.20M	60.20M
Balance Sheet
Total Assets	1.66B	1.75B	1.10B	980.20M	972.40M
Cash, Cash Equivalents and Short-Term Investments	100.70M	91.10M	395.50M	262.50M	264.10M
Total Debt	454.40M	530.90M	254.90M	127.30M	148.20M
Total Liabilities	1.29B	1.38B	708.00M	607.70M	658.80M
Stockholders Equity	362.40M	364.50M	384.40M	368.70M	309.90M
Cash Flow
Free Cash Flow	85.60M	100.00K	26.60M	17.40M	48.10M
Operating Cash Flow	122.90M	58.40M	67.60M	54.10M	73.80M
Investing Cash Flow	29.20M	-465.80M	5.20M	-19.20M	-75.90M
Financing Cash Flow	-131.50M	117.10M	76.50M	-69.00M	-33.50M

Villeroy & Boch Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VIB3, the sentiment is Negative. The current price of 15.75 is below the 20-day moving average (MA) of 18.32, below the 50-day MA of 18.21, and below the 200-day MA of 17.09, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 17.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:VIB3.

Villeroy & Boch Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEI	57 Neutral	€130.24M	16.09	4.73%	7.77%	-8.36%	-38.64%
WEW	57 Neutral	€304.78M	-15.05	3.79%	―	-0.32%	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
NVM	51 Neutral	€121.78M	-31.41	20.90%	―	-9.08%	-34.48%
VIB3	48 Neutral	€442.31M	-20.18	2.64%	5.56%	18.21%	-66.72%