Westwing Group AG (WEW) AI Stock Analysis

• Market Cap: €162.49M
• Dividend Yield: N/A
• Average Volume (3M): 16.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 2.05%
• EPS Growth: 97.89%
• Country: DE
• Employees: 1,240
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.12
• Shares Outstanding: 20,903,969
• 10 Day Avg. Volume: 14,885
• 30 Day Avg. Volume: 16,620
• PEG Ratio: -2.78
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.58
• 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

• Rating: 49 Neutral
• Price Target: €8.00 ▲(0.25%Upside)

Westwing Group AG's overall stock score is impacted significantly by its challenging financial performance, characterized by declining revenues, profitability issues, and liquidity concerns. Despite some technical indicators suggesting a short-term positive trend, the valuation metrics highlight potential financial instability with a negative P/E ratio and no dividend yield. The company needs to improve its financial health to enhance investor confidence.

Westwing Group AG Business Overview & Revenue Model

Company Description

Westwing Group SE, together with its subsidiaries, engages in the home and living eCommerce business. The company operates through two segments, DACH and International. It offers textiles, furniture, kitchen accessories, rugs, and home décor and accessories, as well as lighting, dining, and other products. The company provides its products under own and private label, and third-party brands. It has operations in 11 European countries, including Germany, Austria, Switzerland, Poland, France, Spain, Belgium, the Netherlands, the Czech Republic, Slovakia, and Italy. The company was incorporated in 2011 and is headquartered in Munich, Germany.

How the Company Makes Money

Westwing Group AG generates revenue primarily through the online sale of home and living products. Its key revenue streams include its main e-commerce platform, which operates a members-only shopping club offering time-limited sales and exclusive discounts, and an open shop that provides a wider selection of products without membership constraints. The company leverages its data-driven approach to personalize offerings and enhance customer engagement. Additionally, Westwing collaborates with various brands and suppliers to offer unique and exclusive products, which contributes to its competitive edge and revenue generation. Westwing's revenue is also supported by its marketing strategies, including influencer partnerships and social media campaigns, which help to boost sales and enhance brand visibility.

Westwing Group AG Financial Statement Overview

Summary

Westwing Group AG is navigating a challenging financial environment characterized by declining revenues and profitability, increased leverage, and liquidity concerns. While there are some signs of operational improvement, such as a slight increase in EBITDA margin, the overall financial health remains pressured. The company needs to focus on improving operational efficiencies and cash flow generation to enhance its financial stability.

Income Statement

Westwing Group AG has faced declining revenues and profitability over recent years, with the latest TTM (Trailing-Twelve-Months) showing a slight revenue decrease of 0.25% compared to the previous year. Gross and net profit margins have been negative, indicating ongoing challenges in operational efficiency and cost management. However, there is a slight improvement in EBITDA margin from the previous year, suggesting some operational efficiencies are being realized.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced capital structure with some leverage. However, the equity ratio has declined over recent years, reflecting an increase in liabilities relative to assets. The ROE is negative, highlighting the company's struggle to generate profit from shareholders' equity, which could be a concern for investors.

Cash Flow

Cash flow analysis reveals a negative free cash flow in the TTM period, reversing from positive free cash flow in previous years. The operating cash flow to net income ratio is unfavorable, indicating challenges in converting accounting profit to cash. This is compounded by a significant decrease in free cash flow compared to the previous period, suggesting potential liquidity issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
443.30M	444.40M	428.60M	430.90M	522.40M	432.80M
	Gross Profit
225.30M	225.70M	212.90M	202.80M	256.70M	213.90M
	EBIT
-300.00K	-4.80M	-8.40M	-27.70M	21.10M	31.40M
	EBITDA
19.30M	17.10M	12.40M	-11.00M	33.40M	41.00M
	Net Income Common Stockholders
-600.00K	-5.00M	-12.40M	-32.40M	12.00M	29.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
76.00M	68.80M	81.50M	76.00M	97.30M	104.80M
	Total Assets
228.30M	199.30M	203.40M	228.30M	277.40M	229.00M
	Total Debt
44.70M	33.40M	36.70M	44.70M	45.80M	28.90M
	Net Debt
-31.30M	-35.40M	-44.80M	-31.30M	-51.50M	-75.90M
	Total Liabilities
138.20M	139.90M	128.40M	138.20M	158.10M	120.30M
	Stockholders Equity
90.10M	59.40M	75.00M	90.10M	119.30M	111.50M
Cash Flow		Free Cash Flow
-13.00M	6.40M	27.90M	-21.40M	3.80M	39.30M
	Operating Cash Flow
-3.30M	16.60M	33.30M	-7.50M	18.70M	47.50M
	Investing Cash Flow
-1.60M	-7.50M	-3.80M	-11.40M	-16.00M	-8.00M
	Financing Cash Flow
-20.40M	-21.80M	-23.90M	-2.70M	-9.70M	-7.30M

Westwing Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.98
• 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:WEW, the sentiment is Positive. The current price of 7.98 is above the 20-day moving average (MA) of 7.97, above the 50-day MA of 7.84, and above the 200-day MA of 7.66, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:WEW.

Westwing Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPG	73 Outperform	€205.19M	5.96	31.97%	―	21.39%	14.07%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
WEW	49 Neutral	€162.49M	―	-0.89%	―	2.05%	97.89%
0F2Z		€183.60M	23.14	7.64%	5.22%	―	―
NVM	61 Neutral	€185.03M	15.24	14.16%	8.87%	―	―
GFG	48 Neutral	€79.96M	―	-34.04%	―	-11.28%	54.27%
YOU		€1.15B	―	-47.97%	―	―	―