Wuestenrot & Wuerttembergische (WUW) AI Stock Analysis

• Market Cap: €1.41B
• Dividend Yield: 4.49%
• Average Volume (3M): 17.32K
• Price to Earnings (P/E): 41.4
• Beta (1Y): 0.55
• 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 score is held back primarily by a sharp deterioration in profitability and very low ROE despite improved leverage and a cash-flow rebound. Technicals are moderately constructive with positive trend and momentum. Valuation is a key risk due to a high P/E, only partly supported by the dividend yield.

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

Wüstenrot & Württembergische AG, together with its subsidiaries, provides insurance products and services in Germany, the Czech Republic, and internationally. It operates through Housing, Life and Health Insurance, Property/Casualty Insurance, and All Other segments. The Housing segment offers home loan savings and banking products primarily for retail customers, such as home loan savings contracts, bridging loans, and mortgage loans. The Life and Health Insurance segment provides life and health insurance products for individuals and groups, including classic and unit-linked life and annuity insurance, term insurance, classic and unit-linked Riester and basic pensions, and occupational disability insurance, as well as full and supplementary private health insurance and nursing care insurance. The Property/Casualty Insurance segment offers various insurance products for retail and corporate customers, including general liability, casualty, motor, household, residential building, legal expenses, transport, and technical insurance. The All Other segment provides asset management and property development services; and markets home loan savings and banking products. The company distributes its products and services through partners, brokers, and its mobile sales force, as well as through online sales channels. Wüstenrot & Württembergische AG was founded in 1828 and is headquartered in Stuttgart, Germany.

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

Profitability weakened sharply in the latest year (net income down to 34M in 2024 from 139M in 2023; net margin ~0.6% vs ~2.1%), and ROE compressed to ~0.7%. Offsetting this, leverage improved (debt-to-equity ~1.0x in 2024 vs ~1.17x in 2023) and cash flow rebounded strongly in 2024 (OCF 333M; FCF 265M), though cash flows have been volatile historically.

Income Statement

Profitability has weakened materially in the latest year: net income fell to 34M in 2024 (vs. 139M in 2023) and net margin compressed to ~0.6% (from ~2.1%). Revenue was slightly down in 2024 after a modest 2023 increase, pointing to an uneven top-line trajectory. While 2019–2022 showed healthier earnings power, the sharp drop in operating profitability in 2024 reduces confidence in near-term earnings stability.

Balance Sheet

Capitalization looks adequate with equity near 4.9B and leverage broadly stable around ~1.0x debt-to-equity in 2024 (improved from ~1.17x in 2023 and ~1.42x in 2022). However, returns on equity have compressed significantly to ~0.7% in 2024 (down from ~2.8% in 2023 and mid-single digits earlier), indicating the balance sheet is not currently being translated into attractive shareholder returns.

Cash Flow

Cash generation improved meaningfully in 2024 with operating cash flow of 333M and free cash flow of 265M, versus negative operating and free cash flow in 2021–2023. That said, cash flow has been volatile across the period (including large outflows in 2022), and in 2024 free cash flow covered only ~80% of net income, suggesting earnings-to-cash conversion is good but not consistently strong year to year.

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: Negative
• 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 14.91, below the 50-day MA of 14.53, and above the 200-day MA of 14.08, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 73.12 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%
NBG6	65 Neutral	€1.38B	-165.75	-0.95%	0.12%	-1.28%	-153.13%
HYQ	61 Neutral	€659.68M	30.90	5.74%	―	61.87%	-32.87%
MUX	61 Neutral	€692.45M	18.05	4.23%	6.77%	14.56%	―
WUW	53 Neutral	€1.41B	41.38	―	4.49%	4.19%	-75.44%
PBB	53 Neutral	€561.03M	-2.64	-7.33%	3.61%	-14.47%	-542.84%