Vonovia (VNA) AI Stock Analysis

• Market Cap: €24.65B
• Dividend Yield: 4.13%
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 23.19%
• EPS Growth: 82.41%
• Country: DE
• Employees: 12,306
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Services
• EPS (TTM): 0.59
• Shares Outstanding: 835,621,460
• 10 Day Avg. Volume: 2,615,309
• 30 Day Avg. Volume: 2,417,173
• PEG Ratio: -1.67
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.52
• 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: €34.72
• Price Target Upside: 17.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 56 Neutral
• Price Target: €30.00 ▲(1.83%Upside)

Vonovia's stock score reflects a mixed financial performance with strong revenue and cash flow but significant profitability challenges due to negative net income. Technical indicators show moderate bullish momentum, offering some positive outlook. Valuation is strained by a negative P/E ratio, though the dividend yield is a positive aspect for income-focused investors.

Positive Factors

Dividend Policy

The dividend increased by 35% compared to the prior year, aligning with the new policy of setting the payout ratio at 50% of EBT plus surplus liquidity from free cash flow.

Financial Performance

The company has improved its loan/value ratio and net debt/EBITDA, indicating better financial health.

Negative Factors

Interest Rate Volatility

Vonovia's shares have been the epitome of interest rate driven volatility, with nearly all gyrations being a function of bond market expectations.

Refinancing Rates

Vonovia is still hamstrung by a regulated market, rising refinancing rates, and an LTV that is still too elevated.

Vonovia Business Overview & Revenue Model

Company Description

Vonovia SE operates as an integrated residential real estate company in Europe. It operates through five segments: Rental, Value-Add, Recurring Sales, Development, and Deutsche Wohnen. The company offers property management services; apartments and property-related services; and value-added services, including maintenance and modernization of properties, craftsmen and residential environment organization, residential environment organization, condominium administration, cable TV, metering, energy supply, and insurances services. It also engages in the sale of individual condominiums and single-family houses; and project development activities. As of December 31, 2021, the company had 565,334 residential units; 168,015 garages and parking spaces; and 9,289 commercial units, as well as managed 71,173 residential units for other owners in Germany, Austria, and Sweden. The company was formerly known as Deutsche Annington Immobilien SE and changed its name to Vonovia SE in August 2015. Vonovia SE was founded in 1998 and is headquartered in Bochum, Germany.

How the Company Makes Money

Vonovia makes money primarily through rental income from its extensive portfolio of residential properties. The company generates revenue by leasing apartments, managing rental agreements, and maintaining the properties. Additionally, Vonovia engages in property development, where it constructs new residential buildings or renovates existing ones, ultimately adding them to its rental portfolio. Another revenue stream comes from providing real estate-related services, such as energy services, modernization, and maintenance, which enhance the value and sustainability of its properties. Strategic acquisitions and partnerships also play a role in expanding its asset base and increasing rental income.

Vonovia Financial Statement Overview

Summary

Vonovia shows strong revenue growth and cash flow generation, but struggles with profitability due to negative net income and variable EBIT margins. The balance sheet is robust with a strong equity base, although high leverage is a concern.

Income Statement

Vonovia's revenue has shown a steady growth trajectory with a recent increase in TTM. However, the company is facing negative net income, significantly impacting net profit margins. Gross profit margin is stable, but the negative EBIT and EBITDA margins in previous periods raise concerns about operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity base with an improving equity ratio. However, the high level of debt relative to equity poses a risk, although recent periods show a reduction in total debt. The return on equity is negatively impacted by consecutive net losses.

Cash Flow

The cash flow statement reflects solid operating cash flow with positive free cash flow. The free cash flow to net income ratio is favorable, indicating efficient cash generation despite net losses. However, the potential for growth in free cash flow is limited by negative net income and capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.25B	5.94B	5.23B	5.15B	3.62B	3.15B
Gross Profit	2.65B	2.25B	2.46B	2.86B	2.23B	2.08B
EBITDA	2.21B	408.00M	2.17B	1.26B	1.98B	5.56B
Net Income	-710.80M	-896.00M	-6.29B	-669.40M	2.68B	3.27B
Balance Sheet
Total Assets	64.12B	90.24B	92.00B	101.39B	106.32B	62.42B
Cash, Cash Equivalents and Short-Term Investments	2.17B	2.02B	1.37B	1.20B	1.32B	453.40M
Total Debt	662.80M	43.21B	43.57B	45.69B	47.69B	24.63B
Total Liabilities	39.11B	62.11B	62.05B	66.95B	69.78B	37.59B
Stockholders Equity	24.33B	24.00B	25.68B	31.33B	33.29B	24.15B
Cash Flow
Free Cash Flow	2.29B	2.40B	1.90B	1.86B	1.47B	1.16B
Operating Cash Flow	2.37B	2.40B	1.90B	2.08B	1.82B	1.43B
Investing Cash Flow	97.10M	-187.60M	-825.90M	938.20M	-19.12B	-1.73B
Financing Cash Flow	-1.80B	-1.82B	-961.00M	-3.15B	18.13B	402.60M

Vonovia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.46
• 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:VNA, the sentiment is Positive. The current price of 29.46 is above the 20-day moving average (MA) of 29.31, above the 50-day MA of 28.43, and above the 200-day MA of 28.22, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 65.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:VNA.

Vonovia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	kr18.39B	22.65	1.54%	12.06%	-0.56%	372.59%
VNA	56 Neutral	€24.65B	―	-2.91%	4.13%	23.19%	82.41%
0QC9		€5.57B	22.44	3.32%	3.09%	―	―
0FJC		€719.38M	53.61	1.19%	3.63%	―	―
AT1	72 Outperform	€3.34B	14.77	2.91%	―	-3.28%	―
GYC	70 Neutral	€1.83B	8.48	6.27%	―	-1.22%	―
O5G	52 Neutral	€7.38B	―	-3.87%	―	-6.54%	76.78%