Villeroy & Boch (VIB3) AI Stock Analysis

• Market Cap: €433.07M
• Dividend Yield: 5.59%
• Average Volume (3M): 4.50K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 0.48
• 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): -0.20
• Shares Outstanding: 14,044,800
• 10 Day Avg. Volume: 4,632
• 30 Day Avg. Volume: 4,501
• PEG Ratio: -0.75
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 4.01K
• 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: 1.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.02
• Revenue Forecast (FY): €1.23B

• Rating: 63 Neutral
• Price Target: €17.50 ▲(11.11% Upside)

Villeroy & Boch's stock score is primarily influenced by its stable operational margins and manageable leverage, despite challenges in revenue growth and cash flow. The technical indicators suggest a neutral to mildly bullish trend, while the valuation indicates potential overvaluation. The high dividend yield is a positive aspect for income-focused investors.

Positive Factors

Stable Operational Margins

Stable operational margins indicate effective cost management and pricing strategies, which can support profitability even if revenue growth is challenged.

Brand Recognition

Strong brand recognition helps maintain customer loyalty and pricing power, providing a competitive edge in the ceramics market.

Manageable Leverage

Manageable leverage allows for financial flexibility and reduces risk, supporting long-term stability and potential for strategic investments.

Negative Factors

Declining Cash Flow

Declining cash flow can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial health.

Low Profitability Metrics

Low ROE suggests inefficiencies in generating profits from equity, which could affect investor confidence and long-term growth potential.

Revenue Growth Challenges

Struggles in revenue growth can limit market expansion and competitive positioning, impacting future profitability and market share.

Villeroy & Boch Business Overview & Revenue Model

Company Description

Villeroy & Boch AG (VIB3) is a renowned German ceramics manufacturer that specializes in the production of high-quality tableware, bathroom and wellness products, and tiles. With a rich heritage dating back to 1748, the company operates in several sectors, including home decor and interior design, catering to both consumer and commercial markets. Its core products encompass a wide range of ceramic products, including dinnerware, cutlery, sanitary ware, bathtubs, and wellness solutions, distinguished by their innovative designs and craftsmanship.

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

Villeroy & Boch's financial performance is mixed. While operational efficiency has improved, as seen in EBIT and EBITDA margins, the company faces challenges with declining revenue and cash flow issues. The balance sheet remains stable, but profitability and liquidity need attention.

Income Statement

Villeroy & Boch's income statement shows mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 38.09%, but the net profit margin is low at 1.08%, indicating challenges in converting revenue into profit. Revenue growth has been negative recently, with a significant decline of 89.2% in the latest period, which is concerning. However, EBIT and EBITDA margins have improved over the previous year, suggesting operational efficiency gains.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 0.71, indicating a balanced approach to leveraging. Return on equity is modest at 4.51%, showing limited profitability from shareholder investments. The equity ratio is stable, suggesting a solid asset base relative to equity. Overall, the company maintains a stable but not overly aggressive financial structure.

Cash Flow

Cash flow analysis reveals some weaknesses. The free cash flow has decreased significantly, with a growth rate of -71.08% in the TTM period. The operating cash flow to net income ratio is low at 0.08, indicating challenges in converting earnings into cash. The negative free cash flow to net income ratio further highlights cash flow issues. These factors suggest potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.42B	901.90M	994.50M	945.00M	800.90M
Gross Profit	567.90M	534.00M	392.20M	425.50M	418.30M	322.40M
EBITDA	141.00M	119.00M	143.20M	142.30M	136.00M	79.90M
Net Income	9.40M	5.90M	60.70M	71.20M	60.20M	22.60M
Balance Sheet
Total Assets	1.73B	1.75B	1.10B	980.20M	972.40M	914.30M
Cash, Cash Equivalents and Short-Term Investments	64.70M	91.10M	395.50M	262.50M	264.10M	297.80M
Total Debt	571.30M	530.90M	254.90M	127.30M	148.20M	156.50M
Total Liabilities	1.39B	1.38B	708.00M	607.70M	658.80M	662.60M
Stockholders Equity	344.60M	364.50M	384.40M	368.70M	309.90M	246.90M
Cash Flow
Free Cash Flow	42.70M	100.00K	26.60M	17.40M	48.10M	116.60M
Operating Cash Flow	97.10M	58.40M	67.60M	54.10M	73.80M	136.50M
Investing Cash Flow	-45.30M	-465.80M	5.20M	-19.20M	-75.90M	-17.40M
Financing Cash Flow	-47.00M	117.10M	76.50M	-69.00M	-33.50M	-30.10M

Villeroy & Boch Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 15.75 is below the 20-day moving average (MA) of 15.95, below the 50-day MA of 16.00, and below the 200-day MA of 16.61, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 61.00 is Neutral, 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
TPG	72 Outperform	€124.95M	2.78	35.60%	―	5.73%	-25.88%
VIB3	63 Neutral	€433.07M	46.35	2.67%	5.59%	18.21%	-66.72%
LEI	62 Neutral	€142.22M	32.44	4.74%	7.74%	-8.36%	-38.64%
NVM	59 Neutral	€120.48M	6.57	19.67%	―	-9.08%	-34.48%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
WEW	56 Neutral	€261.66M	105.16	3.63%	―	-0.32%	―