Vonovia (0QFT) AI Stock Analysis

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Positive Factors

Dividend Policy

The dividend increased by 35% compared to the prior year, aligning with the new policy of setting the payout ratio at 50% of EBT plus surplus liquidity from free cash flow.

Financial Health

The company has improved its loan/value ratio and net debt/EBITDA, indicating better financial health.

Negative Factors

Interest Rates

Vonovia's shares have been the epitome of interest rate driven volatility, with nearly all gyrations being a function of bond market expectations.

Leadership Change

The CEO, Rolf Buch, will step down at the end of the year, and the company will see a leadership change with the appointment of Luka Mucic.

Refinancing Rates

Vonovia is still hamstrung by a regulated market, rising refinancing rates, and an LTV that is still too elevated.

Vonovia (0QFT) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap

€24.04B

Dividend Yield4.15%

Average Volume (3M)988.25K

Price to Earnings (P/E)―

Beta (1Y)1.38

Revenue GrowthN/A

EPS GrowthN/A

CountryUK

Employees12,306

SectorReal Estate

Sector Strength60

IndustryReal Estate - Services

Share Statistics

EPS (TTM)0.59

Shares Outstanding822,852,900

10 Day Avg. Volume793,374

30 Day Avg. Volume988,249

Financial Highlights & Ratios

PEG Ratio-1.67

Price to Book (P/B)0.97

Price to Sales (P/S)0.00

P/FCF Ratio10.52

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€34.20

Price Target Upside17.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering14

Vonovia Business Overview & Revenue Model

Company DescriptionVonovia SE operates as an integrated residential real estate company in Europe. It operates through five segments: Rental, Value-Add, Recurring Sales, Development, and Deutsche Wohnen. The company offers property management services; apartments and property-related services; and value-added services, including maintenance and modernization of properties, craftsmen and residential environment organization, residential environment organization, condominium administration, cable TV, metering, energy supply, and insurances services. It also engages in the sale of individual condominiums and single-family houses; and project development activities. As of December 31, 2021, the company had 565,334 residential units; 168,015 garages and parking spaces; and 9,289 commercial units, as well as managed 71,173 residential units for other owners in Germany, Austria, and Sweden. The company was formerly known as Deutsche Annington Immobilien SE and changed its name to Vonovia SE in August 2015. Vonovia SE was founded in 1998 and is headquartered in Bochum, Germany.

How the Company Makes Money

Vonovia Financial Statement Overview

Summary

Vonovia shows strong revenue growth and cash flow generation, but struggles with profitability due to negative net income and variable EBIT margins. The balance sheet is robust with a strong equity base, although high leverage is a concern.

Income Statement

Neutral

Vonovia's revenue has shown a steady growth trajectory with a recent increase in TTM. However, the company is facing negative net income, significantly impacting net profit margins. Gross profit margin is stable, but the negative EBIT and EBITDA margins in previous periods raise concerns about operational efficiency.

Balance Sheet

Neutral

The company's balance sheet shows a strong equity base with an improving equity ratio. However, the high level of debt relative to equity poses a risk, although recent periods show a reduction in total debt. The return on equity is negatively impacted by consecutive net losses.

Cash Flow

Positive

The cash flow statement reflects solid operating cash flow with positive free cash flow. The free cash flow to net income ratio is favorable, indicating efficient cash generation despite net losses. However, the potential for growth in free cash flow is limited by negative net income and capital expenditures.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
6.25B	5.94B	5.23B	5.15B	3.62B	3.15B
	Gross Profit
2.65B	2.25B	2.46B	2.86B	2.23B	2.08B
	EBIT
1.48B	1.00B	1.76B	-363.70M	6.03B	5.46B
	EBITDA
2.21B	408.00M	2.17B	1.26B	1.98B	5.56B
	Net Income Common Stockholders
-710.80M	-896.00M	-6.29B	-669.40M	2.68B	3.27B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.17B	2.02B	1.37B	1.20B	1.32B	453.40M
	Total Assets
64.12B	90.24B	92.00B	101.39B	106.32B	62.42B
	Total Debt
662.80M	43.21B	43.57B	45.69B	47.69B	24.63B
	Net Debt
-1.49B	41.51B	42.20B	44.49B	46.38B	24.17B
	Total Liabilities
39.11B	62.11B	62.05B	66.95B	69.78B	37.59B
	Stockholders Equity
24.33B	24.00B	25.68B	31.33B	33.29B	24.15B
Cash Flow		Free Cash Flow
2.29B	2.40B	1.90B	1.86B	1.47B	1.16B
	Operating Cash Flow
2.37B	2.40B	1.90B	2.08B	1.82B	1.43B
	Investing Cash Flow
97.10M	-187.60M	-825.90M	938.20M	-19.12B	-1.73B
	Financing Cash Flow
-1.80B	-1.82B	-961.00M	-3.15B	18.13B	402.60M

Vonovia Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0QFT		€24.04B	―	-2.91%	4.15%	―	―
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%
0QC9		€5.57B	22.15	3.32%	3.61%	―	―
0FJC		€697.06M	52.40	1.19%	4.18%	―	―
GYC	71 Outperform	€1.90B	8.62	6.27%	―	-1.22%	―
AT1	63 Neutral	€3.19B	14.13	2.91%	―	-3.28%	―
O5G	56 Neutral	€7.47B	―	-3.87%	―	-6.54%	76.78%

* Real Estate Sector Average

Performance Comparison

GB:0QFT

Vonovia

29.23

3.69

14.45%

GB:0QC9

LEG Immobilien

74.77

1.61

2.20%

GB:0FJC

Patrizia Immobilien

8.13

0.56

7.40%

DE:AT1

Aroundtown SA

2.92

0.95

48.22%

DE:GYC

Grand City Properties SA

11.34

0.57

5.29%

DE:O5G

CPI PROPERTY GROUP S.A.

0.84

0.02

2.44%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.