Villeroy & Boch (VIB3) AI Stock Analysis

• Market Cap: €458.15M
• Dividend Yield: 5.19%
• Average Volume (3M): 5.12K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.48
• Revenue Growth: 34.92%
• EPS Growth: -58.07%
• Country: DE
• Employees: 12,827
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.27
• Shares Outstanding: 14,044,800
• 10 Day Avg. Volume: 4,391
• 30 Day Avg. Volume: 5,124
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €16.00
• Price Target Upside: -7.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: €17.50 ▲(0.86%Upside)

Villeroy & Boch's overall stock score is primarily influenced by its financial performance challenges, including declining profitability and cash flow issues, which weigh heavily on the score. Technical analysis suggests a neutral to slightly bearish market outlook, contributing to a lower score. Valuation is relatively balanced, with high P/E offset by a strong dividend yield, providing some support to the overall score.

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 through the sale of its high-quality ceramic products across various segments. In the Bathroom and Wellness sector, the company earns money by selling bathroom fixtures such as sinks, toilets, and bathtubs, as well as wellness products like spas and saunas. In the Dining & Lifestyle sector, revenue is derived from the sale of tableware, glassware, and home decor items. The company also benefits from strategic partnerships and collaborations with designers and retailers, which help expand its market reach and brand appeal. Additionally, Villeroy & Boch actively engages in direct-to-consumer sales through its online platforms and flagship stores, further enhancing its revenue streams.

Villeroy & Boch Financial Statement Overview

Summary

Villeroy & Boch experienced strong revenue growth but faced significant challenges in profitability and cash flow. The decline in profit margins and EBIT reflects operational inefficiencies. Increased debt levels and reduced equity indicate financial instability, and the drastic fall in free cash flow poses concerns for the company's ability to reinvest or distribute capital.

Income Statement

The company experienced a significant revenue increase from €901.9M in 2023 to €1,421.0M in 2024, indicating strong growth in sales. However, gross profit margin declined from 43.5% to 37.6%, suggesting reduced efficiency in cost management. The sharp drop in EBIT from €89M in 2023 to €0 in 2024 is concerning, impacting the EBIT margin negatively. Additionally, net profit margin decreased substantially from 6.7% in 2023 to 0.4% in 2024, reflecting a significant decline in profitability.

Balance Sheet

The debt-to-equity ratio increased from 0.66 in 2023 to 0.55 in 2024, indicating a higher reliance on debt. The equity ratio slightly decreased from 35.1% to 20.8%, pointing to reduced financial stability. Return on equity plummeted from 15.8% to 1.6%, marking a sharp decline in the company's ability to generate profit from shareholders' equity.

Cash Flow

Free cash flow dropped dramatically from €26.6M in 2023 to €0.1M in 2024, showing a significant deterioration in cash generation. The operating cash flow to net income ratio decreased from 1.11 in 2023 to 9.90 in 2024 due to a sharp decline in net income, which raises concerns about cash flow sustainability. The free cash flow to net income ratio also saw a drastic drop from 0.44 to effectively zero, highlighting issues in maintaining free cash flow levels.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.42B	901.90M	994.50M	945.00M	800.90M
Gross Profit	534.00M	392.20M	425.50M	418.30M	322.40M
EBITDA	119.00M	143.20M	142.30M	136.00M	79.90M
Net Income	5.90M	60.70M	71.20M	60.20M	22.60M
Balance Sheet
Total Assets	1.75B	1.10B	980.20M	972.40M	914.30M
Cash, Cash Equivalents and Short-Term Investments	91.10M	395.50M	262.50M	264.10M	297.80M
Total Debt	200.60M	254.90M	127.30M	148.20M	156.50M
Total Liabilities	1.38B	708.00M	607.70M	658.80M	662.60M
Stockholders Equity	364.50M	384.40M	368.70M	309.90M	246.90M
Cash Flow
Free Cash Flow	100.00K	26.60M	17.40M	48.10M	116.60M
Operating Cash Flow	58.40M	67.60M	54.10M	73.80M	136.50M
Investing Cash Flow	-465.80M	5.20M	-19.20M	-75.90M	-17.40M
Financing Cash Flow	117.10M	76.50M	-69.00M	-33.50M	-30.10M

Villeroy & Boch Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VIB3, the sentiment is Positive. The current price of 17.35 is below the 20-day moving average (MA) of 17.84, below the 50-day MA of 17.43, and above the 200-day MA of 15.82, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 53.23 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:VIB3.

Villeroy & Boch Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$22.84B	13.40	-0.89%	3.13%	3.00%	-17.67%
VIB3	53 Neutral	€458.15M	28.48	4.61%	5.19%	34.92%	-58.07%
0N2Q	―	€289.47M	12.43	9.96%	9.07%	―	―
0F2Z	―	€143.64M	18.01	7.64%	7.62%	―	―
TPG	74 Outperform	€164.56M	4.78	31.97%	―	21.39%	14.07%
NVM	55 Neutral	€172.55M	15.36	12.22%	8.87%	-14.80%	-67.71%
WEW	49 Neutral	€184.89M	―	-0.89%	―	2.05%	97.89%