Westwing Group AG (WEW) AI Stock Analysis

• Market Cap: €239.26M
• Dividend Yield: N/A
• Average Volume (3M): 10.14K
• Price to Earnings (P/E): 51.2
• Beta (1Y): 0.65
• 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): 0.12
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €12.00 ▼(-6.98% Downside)

Westwing Group AG's stock score is primarily influenced by its financial performance challenges, particularly in cash flow management and revenue growth. Technical analysis shows positive momentum, but overbought conditions could lead to a pullback. The high P/E ratio indicates overvaluation, further impacting the overall score.

Positive Factors

Profitability Improvements

The significant improvement in profitability, as evidenced by a 73% increase in adjusted EBITDA, indicates enhanced operational efficiency and cost management, which can lead to sustainable financial health and competitive positioning in the long term.

Geographic and Store Expansion

Successful geographic and store expansion into 10 new countries and 7 new stores enhances market reach and revenue potential, supporting long-term growth and diversification of revenue streams.

Westwing Collection Growth

The 19% growth in the Westwing Collection, contributing to 66% of group GMV, reflects strong brand strength and customer preference, supporting sustained revenue growth and market leadership.

Negative Factors

Declining Revenue Growth

The declining revenue growth trend poses a risk to long-term financial stability and market competitiveness, necessitating strategic initiatives to reverse this trend and sustain business momentum.

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which can constrain investment in growth opportunities and impact the company's ability to weather economic downturns.

DACH Segment Revenue Decline

The revenue decline in the DACH segment highlights regional market challenges, which could affect overall revenue stability and necessitate targeted strategies to regain market share.

Westwing Group AG Business Overview & Revenue Model

Company Description

Westwing Group AG is a leading e-commerce company based in Germany that specializes in home and living products. Founded in 2011, Westwing operates in the online furniture and decor sector, providing a curated selection of high-quality home goods through its platform. The company primarily targets consumers looking for stylish and affordable home furnishings, offering a range of products including furniture, textiles, lighting, and decorative items, often with a focus on seasonal trends and exclusive collections.

How the Company Makes Money

Westwing Group AG generates revenue primarily through the sale of home and living products on its e-commerce platform. The company employs a direct-to-consumer model, where it sources products from various suppliers and sells them directly to customers, allowing for a higher margin compared to traditional retail. Key revenue streams include sales from its curated product offerings, membership fees from its loyalty program, and additional revenues from strategic partnerships with brands and designers for exclusive collections. Furthermore, the company benefits from seasonal sales promotions and marketing campaigns aimed at driving customer engagement and repeat purchases. Westwing's business model is supported by an efficient logistics network and a robust online marketing strategy that enhances brand visibility and customer acquisition.

Westwing Group AG Financial Statement Overview

Summary

Westwing Group AG faces challenges in revenue growth and cash flow management, with declining revenue and negative free cash flow growth. Improvements in profitability margins and return on equity are positive, but cash flow issues and asset leverage need addressing.

Income Statement

Westwing Group AG's income statement shows declining revenue growth with a negative trend in recent years, particularly a -1.44% drop in TTM. The gross profit margin remains stable at around 51%, but net profit margins are low at 0.96% TTM, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins have improved to 1.21% and 5.10% respectively in TTM, showing some operational efficiency gains.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.55 in TTM, indicating manageable debt levels. Return on equity has improved to 6.67% in TTM, showing better utilization of equity. However, the equity ratio is not explicitly calculated, suggesting a need for more comprehensive asset management analysis.

Cash Flow

Cash flow analysis reveals a concerning trend with negative free cash flow growth of -49.23% in TTM, indicating cash outflows. The operating cash flow to net income ratio is low at 0.04, suggesting weak cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	436.90M	444.40M	428.60M	430.90M	522.40M	432.80M
Gross Profit	224.10M	225.70M	212.90M	202.80M	256.70M	213.90M
EBITDA	22.30M	17.10M	12.40M	-11.00M	33.40M	40.00M
Net Income	4.20M	-5.00M	-12.40M	-32.40M	12.00M	29.80M
Balance Sheet
Total Assets	182.90M	199.30M	203.40M	228.30M	277.40M	229.00M
Cash, Cash Equivalents and Short-Term Investments	49.70M	68.80M	81.50M	76.00M	97.30M	104.80M
Total Debt	34.10M	33.40M	36.70M	44.70M	45.80M	28.90M
Total Liabilities	120.60M	139.90M	128.40M	138.20M	158.10M	120.30M
Stockholders Equity	62.30M	59.40M	75.00M	90.10M	119.30M	111.50M
Cash Flow
Free Cash Flow	-6.60M	6.40M	27.90M	-21.40M	3.80M	39.30M
Operating Cash Flow	3.50M	16.60M	33.30M	-7.50M	18.70M	47.50M
Investing Cash Flow	-5.00M	-7.50M	-3.80M	-11.40M	-16.00M	-8.00M
Financing Cash Flow	-20.50M	-21.80M	-23.90M	-2.70M	-9.70M	-7.30M

Westwing Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.90
• 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 12.9 is below the 20-day moving average (MA) of 12.93, above the 50-day MA of 12.27, and above the 200-day MA of 9.79, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 54.32 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	72 Outperform	€135.57M	3.02	35.60%	―	5.73%	-25.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEI	60 Neutral	€142.22M	32.44	4.74%	7.59%	-8.36%	-38.64%
NVM	60 Neutral	€120.48M	6.57	19.67%	―	-9.08%	-34.48%
WEW	52 Neutral	€239.26M	51.20	3.63%	―	-0.32%	―
YOU	45 Neutral	€1.06B	-10.89	―	―	3.44%	5.93%
GFG	41 Neutral	€62.14M	―	―	―	-11.28%	54.27%

Westwing Group AG Corporate Events

Westwing Group’s Earnings Call: Profitability and Growth Shine

Westwing Group’s recent earnings call painted a picture of optimism and strategic success, despite facing some challenges. The company showcased strong profitability improvements, successful geographic and store expansions, and robust performance in its Westwing Collection and international segment. While there were hurdles such as declining revenue in the DACH segment and negative impacts from product assortment changes, the overall sentiment was positive, with achievements outweighing the setbacks.