Westwing Group AG (WEW) AI Stock Analysis

• Market Cap: €248.43M
• Dividend Yield: N/A
• Average Volume (3M): 22.54K
• Price to Earnings (P/E): 53.2
• Beta (1Y): 0.70
• Revenue Growth: -0.39%
• EPS Growth: N/A
• Country: DE
• Employees: 1,240
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.10
• Shares Outstanding: 20,903,969
• 10 Day Avg. Volume: 12,277
• 30 Day Avg. Volume: 22,538
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €12.50
• Price Target Upside: 4.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: €12.50 ▲(4.60% Upside)

Westwing Group AG's stock score is primarily influenced by its strong technical indicators, suggesting positive market momentum. However, financial performance concerns, particularly in cash flow management, and a high P/E ratio limit the overall attractiveness. The lack of dividend yield and absence of earnings call data further constrain the score.

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 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. While there are improvements in profitability margins and return on equity, the company needs to address cash flow issues and leverage its assets more effectively to enhance financial stability.

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	41.00M
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: Neutral
• Last Price: 11.95
• 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 Neutral. The current price of 11.95 is below the 20-day moving average (MA) of 12.32, above the 50-day MA of 10.34, and above the 200-day MA of 8.40, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 28.00 is Neutral, 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	€202.94M	4.49	31.97%	―	5.73%	-25.98%
Sector *	61 Neutral	$17.92B	12.81	-2.97%	2.98%	1.30%	-14.28%
WEW	57 Neutral	€248.43M	53.16	6.37%	―	-0.39%	―
0F2Z	―	€145.55M	32.23	4.69%	7.74%	―	―
NVM	55 Neutral	€162.22M	6.56	26.85%	8.87%	-11.68%	4.45%
GFG	49 Neutral	€76.99M	―	-34.04%	―	-11.28%	54.27%
YOU	46 Neutral	€1.08B	―	-47.97%	―	3.44%	5.93%