Westwing Group AG (WEW) AI Stock Analysis

• Market Cap: €234.17M
• Dividend Yield: N/A
• Average Volume (3M): 10.14K
• Price to Earnings (P/E): 94.1
• Beta (1Y): 0.69
• 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: 56 Neutral
• Price Target: €12.00 ▲(6.19% Upside)

Westwing Group AG's overall stock score reflects strong revenue growth and strategic expansion efforts, as highlighted in the earnings call. However, the stock faces significant challenges in profitability, cash flow, and valuation, with technical indicators suggesting bearish momentum. The high P/E ratio indicates potential overvaluation, and the lack of a dividend yield further impacts the stock's attractiveness.

Positive Factors

Geographic and Store Expansion

Expanding into new markets and increasing store presence enhances Westwing's market reach and potential revenue streams, supporting long-term growth.

Westwing Collection Growth

Strong growth in the Westwing Collection indicates successful product differentiation and brand strength, contributing to sustainable revenue growth.

Positive Free Cash Flow

Positive free cash flow and a strong cash position enhance financial stability and provide flexibility for future investments and growth initiatives.

Negative Factors

Decline in DACH Segment Revenue

Revenue decline in the DACH segment may indicate regional market challenges, impacting overall revenue stability and growth potential.

Challenges with Product Assortment Changes

Negative impact from product assortment changes suggests potential misalignment with customer preferences, affecting sales and customer retention.

Negative EBIT and Stock Option Impact

Negative EBIT due to stock option adjustments reflects cost pressures that could hinder profitability and financial performance.

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

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	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: Neutral
• Last Price: 11.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WEW, the sentiment is Neutral. The current price of 11.3 is below the 20-day moving average (MA) of 11.47, below the 50-day MA of 12.23, and above the 200-day MA of 10.28, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€105.76M	2.36	35.60%	―	5.73%	-25.88%
LEI	62 Neutral	€131.98M	31.77	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	€135.98M	7.42	19.67%	―	-9.08%	-34.48%
WEW	56 Neutral	€234.17M	94.11	3.63%	―	-0.32%	―
GFG	48 Neutral	€66.25M	-0.79	―	―	-11.28%	54.27%