Wuestenrot & Wuerttembergische (WUW) AI Stock Analysis

• Market Cap: €1.33B
• Dividend Yield: 4.53%
• Average Volume (3M): 17.32K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 0.57
• Revenue Growth: 4.19%
• EPS Growth: -75.44%
• Country: DE
• Employees: 7,570
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): N/A
• Shares Outstanding: 93,749,720
• 10 Day Avg. Volume: 22,125
• 30 Day Avg. Volume: 17,318
• PEG Ratio: -0.42
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 4.11
• 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: 53 Neutral
• Price Target: €14.50 ▲(2.11% Upside)

The overall stock score reflects significant challenges in financial performance, particularly in revenue growth and profitability. Technical analysis shows moderate bullish momentum, but the high P/E ratio suggests potential overvaluation. The attractive dividend yield provides some offset to valuation concerns.

Positive Factors

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility and resilience, supporting long-term operational stability.

Cash Flow Recovery

Improved free cash flow indicates enhanced cash generation ability, which is crucial for funding operations, investments, and dividends sustainably.

High Gross Profit Margins

High gross profit margins suggest strong pricing power and cost management, which can support profitability as operational efficiencies improve.

Negative Factors

Declining Revenue

A declining revenue trend indicates challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Reduced Profitability

Decreased profitability reflects operational challenges and may limit reinvestment capacity, affecting future growth and shareholder returns.

Low Cash Conversion

Low cash conversion efficiency can strain liquidity and limit the company's ability to finance operations and growth initiatives.

Wuestenrot & Wuerttembergische Business Overview & Revenue Model

Company Description

Wuestenrot & Wuerttembergische (WUW) is a prominent financial services provider based in Germany, specializing in a broad range of products including insurance, banking, and asset management. The company operates primarily in the insurance sector, offering life, health, and property insurance, as well as investment solutions and financial planning services. WUW aims to deliver comprehensive financial security and growth opportunities for individuals and businesses alike, leveraging its deep industry expertise and customer-centric approach.

How the Company Makes Money

WUW generates revenue through multiple streams, primarily from insurance premiums collected from policyholders for various insurance products such as life, health, and property insurance. Additionally, the company earns income from investment returns on the premiums it collects, which are invested in a diversified portfolio of assets. WUW also earns fees from asset management services provided to clients, as well as interest income from its banking operations. Significant partnerships with other financial institutions and service providers enhance its service offerings and contribute to its overall financial performance, while effective risk management strategies help maintain profitability across its insurance and investment activities.

Wuestenrot & Wuerttembergische Financial Statement Overview

Summary

Wuestenrot & Wuerttembergische demonstrates moderate financial health with stable revenues and a consistent gross profit margin but faces challenges in maintaining net profitability and efficient operations as seen in declining net profit and EBIT margins. The balance sheet is relatively strong with manageable leverage, though declining ROE is a concern. Cash flow improvements in 2024 suggest recovery, but past volatility needs close monitoring.

Income Statement

Wuestenrot & Wuerttembergische's income statement shows moderate stability with declining revenue over the last two years, although the gross profit margin remains consistent at 100% due to revenue equalling gross profit. The net profit margin decreased significantly from 2.13% in 2023 to 0.55% in 2024. EBIT and EBITDA margins are low, which might indicate efficiency issues in core operations.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 1.04 in 2024, showing moderate leverage. Return on equity (ROE) has decreased from 2.82% in 2023 to 0.69% in 2024, indicating reduced profitability relative to shareholders' equity. The equity ratio of 6.78% in 2024 suggests a relatively low portion of equity financing, consistent with industry norms.

Cash Flow

Cash flow analysis reveals volatility with an improvement in free cash flow from -178.05 million in 2023 to 265 million in 2024. The operating cash flow to net income ratio increased to 9.79 in 2024, suggesting effective cash generation relative to net income, but past fluctuations pose a risk. The free cash flow to net income ratio was 7.79 in 2024, indicating robust cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.92B	6.15B	5.99B	4.27B	7.72B	6.76B
Gross Profit	5.81B	5.94B	5.67B	3.95B	6.90B	6.01B
EBITDA	122.00M	139.00M	287.00M	392.86M	986.70M	856.34M
Net Income	139.00M	34.00M	139.00M	235.42M	350.52M	209.91M
Balance Sheet
Total Assets	72.84B	72.27B	68.68B	65.50B	75.21B	76.49B
Cash, Cash Equivalents and Short-Term Investments	0.00	24.79B	23.87B	22.64B	33.89B	38.23B
Total Debt	6.45B	5.09B	5.75B	5.28B	4.72B	4.03B
Total Liabilities	67.85B	67.34B	63.72B	61.79B	70.34B	71.40B
Stockholders Equity	4.96B	4.90B	4.93B	4.86B	4.84B	5.04B
Cash Flow
Free Cash Flow	1.27B	265.00M	-178.05M	-2.36B	-912.94M	275.13M
Operating Cash Flow	1.29B	333.00M	-108.12M	-2.23B	-795.99M	434.95M
Investing Cash Flow	-759.00M	-66.00M	53.71M	2.55B	350.93M	-266.63M
Financing Cash Flow	-74.00M	-333.00M	-98.22M	-102.52M	197.37M	-20.96M

Wuestenrot & Wuerttembergische Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.20
• 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:WUW, the sentiment is Positive. The current price of 14.2 is below the 20-day moving average (MA) of 14.21, above the 50-day MA of 14.14, and above the 200-day MA of 13.82, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 21.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:WUW.

Wuestenrot & Wuerttembergische Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HYQ	67 Neutral	€836.79M	40.66	5.74%	―	61.87%	-32.87%
NBG6	65 Neutral	€1.38B	-165.06	-0.95%	0.12%	-1.28%	-153.13%
MUX	61 Neutral	€616.93M	16.08	4.23%	6.75%	14.56%	―
WUW	53 Neutral	€1.33B	39.12	―	4.53%	4.19%	-75.44%
PBB	53 Neutral	€565.87M	-2.60	-7.33%	3.58%	-14.47%	-542.84%