Villeroy & Boch (VIB3) AI Stock Analysis

• Market Cap: €462.12M
• Dividend Yield: 5.56%
• Average Volume (3M): 4.01K
• Price to Earnings (P/E): 49.5
• Beta (1Y): 0.47
• Revenue Growth: 18.21%
• EPS Growth: -66.72%
• Country: US
• 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: 3,864
• 30 Day Avg. Volume: 4,013
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): €1.23B

• Rating: 63 Neutral
• Price Target: €19.00 ▲(20.63% 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

Brand strength & diversified product portfolio

Long heritage and clear multi-category product set (tableware, bathroom, tiles, wellness) support durable customer recognition and channel breadth. This diversification across consumer and B2B end-markets reduces single-segment cyclicality and sustains pricing and distribution advantages over months to years.

Sustained gross and EBITDA margins

Relatively high gross and healthy EBITDA margins indicate manufacturing and product mix advantages that preserve profitability despite sales variability. These margins provide a structural cushion to fund innovation, channel support and selective investments, helping the business remain resilient over multiple quarters.

Manageable leverage and capital structure

A moderate debt-to-equity ratio suggests the company is not overlevered, enabling capacity for strategic investment or working capital needs without immediate refinancing strain. This balance provides financial flexibility to execute medium-term initiatives while keeping solvency risk contained.

Negative Factors

Weak cash generation and conversion

Severely weakened free cash flow and poor conversion of accounting profits into cash create a durable constraint on funding dividends, capex and debt reduction. Over 2–6 months this limits strategic optionality and may force external financing, asset disposals, or curtailed investment in growth initiatives.

Low net profitability

A sub-2% net margin implies minimal buffer after operating and financial costs, leaving earnings highly sensitive to volume or input-cost shifts. Persistently thin net returns hinder retained earnings accumulation and reduce long-term internal funding for product development and international expansion.

Modest return on equity and limited equity cushion

Low ROE signals limited efficiency in converting shareholders' capital into profits, while a sub-20% equity ratio implies reliance on liabilities for asset funding. Together these structural features constrain the firm's ability to absorb shocks and may limit capacity for value-accretive reinvestment over the medium term.

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

Villeroy & Boch shows stable operational margins but faces challenges in revenue growth and cash flow generation. The balance sheet is relatively strong with manageable leverage, but profitability metrics like ROE could be improved. The company should focus on enhancing cash flow management and driving revenue growth to strengthen its financial position.

Income Statement

Villeroy & Boch's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 0.74%, and the net profit margin is relatively low at 1.08%. However, the company maintains a stable gross profit margin of around 38% and an EBIT margin of 4.24%. The EBITDA margin is also healthy at 9.88%, suggesting operational efficiency despite the revenue decline.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.71, indicating manageable leverage. The return on equity (ROE) is modest at 4.51%, showing some profitability but room for improvement. The equity ratio stands at 19.91%, suggesting a balanced asset structure with a reasonable level of equity financing.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth by 693.06% in the TTM period. The operating cash flow to net income ratio is low at 8.34%, and the free cash flow to net income ratio is negative, indicating potential liquidity issues. The company needs to improve its cash generation capabilities to support operations and growth.

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: Positive
• Last Price: 15.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 15.75 is below the 20-day moving average (MA) of 17.02, below the 50-day MA of 16.43, and below the 200-day MA of 16.73, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 50.24 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
VIB3	63 Neutral	€462.12M	49.46	2.67%	5.56%	18.21%	-66.72%
LEI	62 Neutral	€131.11M	31.56	4.74%	7.77%	-8.36%	-38.64%
NVM	59 Neutral	€131.67M	7.28	19.67%	―	-9.08%	-34.48%
WEW	57 Neutral	€292.21M	115.38	3.63%	―	-0.32%	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%