Westwing Group AG (WEW) AI Stock Analysis

• Market Cap: €292.21M
• Dividend Yield: N/A
• Average Volume (3M): 10.14K
• Price to Earnings (P/E): 117.4
• Beta (1Y): 0.57
• Revenue Growth: -0.32%
• EPS Growth: N/A
• Country: DE
• Employees: 1,240
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.20
• Shares Outstanding: 20,903,969
• 10 Day Avg. Volume: 10,229
• 30 Day Avg. Volume: 10,141
• PEG Ratio: 0.50
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 22.98
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €15.00 ▲(32.74% Upside)

The score is driven primarily by mixed financial performance—strong revenue recovery and improving operating efficiency, but weak cash flow quality and very thin net margins. Technicals are supportive with the stock trading above key moving averages, though the RSI is overbought. Valuation is a major headwind due to the very high P/E, partially balanced by a constructive earnings call with improved profitability, positive free cash flow in the quarter, and reaffirmed guidance.

Positive Factors

Revenue Recovery

A 73.2% TTM revenue rebound indicates durable demand recovery and successful re-acceleration of top-line growth. Sustained revenue expansion improves fixed-cost absorption and scale economics, enabling continued investment in assortment, logistics, and marketing over the next several quarters.

Improving Operational Profitability

A 73% YoY rise in adjusted EBITDA to EUR 6m (6.1% margin) reflects material improvement in operational leverage and cost discipline. If maintained, this margin expansion supports reinvestment capacity, reduces vulnerability to volatility, and validates management's efficiency initiatives over the medium term.

Geographic Expansion

Expansion into 10 new countries and seven store openings diversifies revenue streams and reduces concentration risk in core markets. Successful market rollouts create new customer cohorts, scale benefits for supply chain and private-label offerings, and support durable growth beyond domestic demand cycles.

Negative Factors

Weak Cash Generation

A steep -259% TTM decline in free cash flow growth and near-zero operating cash conversion indicate weak cash quality. Persistent poor cash generation constrains capital allocation, raises reliance on external financing for expansion, and elevates risk of funding gaps during downturns.

Very Thin Net Margins

Sub-1% net margin leaves little buffer against cost inflation or promotional pressure. Low after-tax profitability limits internal capital formation, slows ROE improvement, and makes sustainable shareholder returns and funding of strategic initiatives more challenging without continued margin improvement.

Core Market Weakness & Assortment Headwinds

A 2.4% YoY decline in the DACH market—Westwing's core region—combined with assortment-driven drops in orders and active customers signals structural merchandising or demand issues. Erosion in the home market undermines unit economics and complicates profitable scaling of international growth.

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 its e-commerce sales of home and living products. The company employs a business model that focuses on flash sales, where products are offered at discounted prices for a limited time. This creates a sense of urgency among consumers, driving higher conversion rates. Key revenue streams include direct sales of products to consumers, as well as potential partnerships with brands and suppliers that may provide exclusive items or promotional offerings. Additionally, Westwing may benefit from affiliate marketing and advertising partnerships, enhancing its earnings through strategic collaborations in the home and living sector.

Westwing Group AG Financial Statement Overview

Summary

Financials show recovery but uneven quality. Income statement is supported by strong TTM revenue growth (73.2%) and improving EBIT/EBITDA margins (1.21%/5.10%), but profitability remains thin (0.96% net margin). Balance sheet leverage is manageable (debt-to-equity 0.55) with improving ROE (6.67%), while cash flow is the key weakness with sharply negative free cash flow growth (-259.09%) and weak operating cash conversion (operating cash flow to net income 0.04).

Income Statement

Westwing Group AG shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a modest gross profit margin of 51.29%, which is stable compared to previous years. However, the net profit margin is low at 0.96%, reflecting challenges in converting revenue into profit. The revenue growth rate is strong at 73.2% TTM, indicating a significant recovery from previous declines. EBIT and EBITDA margins have improved to 1.21% and 5.10% respectively, showing better operational efficiency.

Balance Sheet

The balance sheet of Westwing Group AG reveals moderate leverage with a debt-to-equity ratio of 0.55 TTM, which is manageable but slightly higher than previous years. Return on equity has improved to 6.67% TTM, indicating better profitability from shareholders' equity. The equity ratio stands at 31.28% TTM, suggesting a stable capital structure but with room for improvement in asset financing through equity.

Cash Flow

Cash flow analysis shows a concerning trend with a significant decline in free cash flow growth at -259.09% TTM. The operating cash flow to net income ratio is low at 0.04 TTM, indicating potential challenges in cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting issues in maintaining positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	440.10M	444.40M	428.60M	430.90M	522.40M	432.80M
Gross Profit	227.90M	225.70M	212.90M	202.80M	256.70M	213.90M
EBITDA	19.40M	17.10M	12.40M	-11.00M	33.40M	40.00M
Net Income	2.30M	-5.00M	-12.40M	-32.40M	12.00M	29.80M
Balance Sheet
Total Assets	188.00M	199.30M	203.40M	228.30M	277.40M	229.00M
Cash, Cash Equivalents and Short-Term Investments	57.60M	68.80M	81.50M	76.00M	97.30M	104.80M
Total Debt	32.80M	33.40M	36.70M	44.70M	45.80M	28.90M
Total Liabilities	129.20M	139.90M	128.40M	138.20M	158.10M	120.30M
Stockholders Equity	58.80M	59.40M	75.00M	90.10M	119.30M	111.50M
Cash Flow
Free Cash Flow	10.50M	6.40M	27.90M	-21.40M	3.80M	39.30M
Operating Cash Flow	20.40M	16.60M	33.30M	-7.50M	18.70M	47.50M
Investing Cash Flow	-5.30M	-7.50M	-3.80M	-11.40M	-16.00M	-8.00M
Financing Cash Flow	-20.20M	-21.80M	-23.90M	-2.70M	-9.70M	-7.30M

Westwing Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.30
• 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:WEW, the sentiment is Positive. The current price of 11.3 is below the 20-day moving average (MA) of 13.00, below the 50-day MA of 12.50, and above the 200-day MA of 10.70, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 64.05 is Neutral, neither overbought nor oversold. The STOCH value of 48.92 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
LEI	62 Neutral	€133.28M	32.08	4.74%	7.77%	-8.36%	-38.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NVM	59 Neutral	€133.39M	7.28	19.67%	―	-9.08%	-34.48%
WEW	57 Neutral	€292.21M	117.43	3.63%	―	-0.32%	―
GFG	48 Neutral	€69.68M	-0.83	―	―	-11.28%	54.27%