Westwing Group AG (WEW) AI Stock Analysis

• Market Cap: €187.34M
• Dividend Yield: N/A
• Average Volume (3M): 15.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 2.05%
• EPS Growth: 97.89%
• Country: DE
• Employees: 1,240
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.12
• Shares Outstanding: 20,903,969
• 10 Day Avg. Volume: 12,340
• 30 Day Avg. Volume: 15,872
• PEG Ratio: -2.93
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.22
• 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 ▼(-13.04%Downside)

Westwing Group AG is struggling financially, with negative profitability and liquidity issues being significant concerns. While technical indicators show positive momentum, they are offset by valuation challenges due to the company's negative earnings. The lack of dividend yield also impacts the stock's overall attractiveness.

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 through its online platform by selling home and living products. The company employs a flash sales model, offering limited-time promotions on a curated selection of goods sourced from a wide array of suppliers and brands. This approach not only creates a sense of urgency among customers but also allows Westwing to manage inventory efficiently. Additionally, Westwing has developed its own private label products, which contribute to higher margins. The company also leverages data-driven marketing strategies to optimize customer acquisition and retention, enhancing its profitability. Key factors contributing to its earnings include exclusive partnerships with suppliers, effective inventory management, and a strong focus on brand development and customer loyalty.

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

Westwing Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.2 is above the 20-day moving average (MA) of 8.44, above the 50-day MA of 8.16, and above the 200-day MA of 7.78, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 80.68 is Negative, neither overbought nor oversold. The STOCH value of 91.45 is Negative, 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	71 Outperform	€187.43M	5.44	31.97%	―	21.39%	14.07%
Sector *	62 Neutral	AU$2.95B	28.44	4.69%	4.80%	2.28%	-33.31%
WEW	49 Neutral	€187.34M	―	-0.89%	―	2.05%	97.89%
0F2Z	―	€149.83M	18.79	7.64%	7.30%	―	―
NVM	55 Neutral	€172.55M	15.36	12.22%	8.87%	-14.80%	-67.71%
GFG	49 Neutral	€78.36M	―	-34.04%	―	-11.28%	54.27%
YOU	48 Neutral	€1.15B	―	-47.97%	―	3.44%	5.93%