Allegroeu (ALE) AI Stock Analysis

• Market Cap: zł35.61B
• Dividend Yield: N/A
• Average Volume (3M): 3.31M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.96
• Revenue Growth: 6.02%
• EPS Growth: 89.23%
• Country: PL
• Employees: 5,980
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.37
• Shares Outstanding: 1,056,904,900
• 10 Day Avg. Volume: 3,051,906
• 30 Day Avg. Volume: 3,310,064
• PEG Ratio: 0.11
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 9.60
• 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: zł40.00
• Price Target Upside: 15.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: zł38.00 ▲(10.14% Upside)

Allegroeu's strong financial performance, characterized by robust profitability and improved margins, is the most significant factor driving the stock score. However, technical indicators suggest a lack of momentum, and the high P/E ratio indicates potential overvaluation. The absence of a dividend yield further impacts its valuation attractiveness.

Allegroeu Business Overview & Revenue Model

Company Description

Allegro.eu SA operates a go-to commerce platform for consumers in Poland. It operates allegro.pl, an e-commerce marketplace that sell products in various categories, including automotive; home and garden; books, media, collectibles, and art; fashion and shoes; electronics; kids; health and beauty; sports and leisure; and supermarket. The company also operates ceneo.pl, a multi-category price comparison site; and eBilet, an event ticket sales site facilitating the sale of a range of entertainment, cultural, family, and sports events. In addition, it is involved in the data processing, hosting, and related activities; other information technology and computer service activities; computer facilities management activities; and software-related and computer consultancy activities. The company was formerly known as Adinan Super Topco S.a r.l. and changed its name to Allegro.eu SA in August 2020. Allegro.eu SA was incorporated in 2017 and is based in Luxembourg, Luxembourg.

How the Company Makes Money

Allegroeu generates revenue primarily through transaction fees charged to sellers for each sale made on its platform. This includes a percentage of the sale price as well as fixed fees for listing products. Additionally, the company earns income from advertising services, allowing sellers to promote their listings to increase visibility and sales. Strategic partnerships with logistics providers and payment processors further enhance its service offerings, enabling faster delivery and secure transactions, which in turn boosts customer retention and attracts more sellers to the platform.

Allegroeu Financial Statement Overview

Summary

Allegroeu demonstrates strong financial health with robust profitability and improved margins. The balance sheet shows a favorable debt-to-equity ratio, though high debt levels remain a concern. Cash flow generation is solid, but declining free cash flow growth warrants attention.

Income Statement

Allegroeu has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 29.48% in 2023 to 86.02% in 2024. The net profit margin has also improved significantly, reaching 9.56% in 2024. EBIT and EBITDA margins have strengthened, indicating improved operational efficiency. However, the revenue growth rate has slowed to 2.25% in 2024, suggesting a potential plateau in growth.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.63 in 2024, indicating a healthier balance between debt and equity. Return on equity has increased to 10.26%, reflecting better profitability. The equity ratio remains stable, showing a solid capital structure. However, the total debt remains substantial, which could pose risks if not managed carefully.

Cash Flow

Operating cash flow has increased, leading to a strong operating cash flow to net income ratio of 1.39 in 2024. However, free cash flow growth has declined by 4.20%, and the free cash flow to net income ratio is slightly lower at 0.82. This indicates potential challenges in converting income into free cash flow, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.37B	10.82B	10.19B	9.00B	5.35B	4.00B
Gross Profit	7.32B	9.31B	3.00B	6.60B	5.01B	3.78B
EBITDA	2.43B	2.96B	1.92B	-194.69M	2.05B	1.39B
Net Income	896.22M	1.03B	284.06M	-1.92B	1.09B	419.16M
Balance Sheet
Total Assets	0.00	19.52B	18.54B	19.23B	16.87B	15.15B
Cash, Cash Equivalents and Short-Term Investments	4.10B	4.09B	2.06B	880.37M	1.96B	1.19B
Total Debt	0.00	6.36B	6.69B	7.14B	5.62B	5.51B
Total Liabilities	-10.09B	9.43B	9.50B	10.25B	7.42B	7.06B
Stockholders Equity	10.09B	10.09B	9.04B	8.98B	9.45B	8.09B
Cash Flow
Free Cash Flow	1.75B	2.98B	2.07B	1.13B	999.53M	1.28B
Operating Cash Flow	2.14B	3.62B	2.54B	1.85B	1.41B	1.51B
Investing Cash Flow	-587.06M	-640.45M	-466.84M	-3.08B	-429.90M	-218.21M
Financing Cash Flow	-870.22M	-967.34M	-883.90M	141.53M	-204.52M	-510.50M

Allegroeu Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:ALE, the sentiment is Neutral. The current price of 34.5 is above the 20-day moving average (MA) of 34.03, below the 50-day MA of 34.95, and above the 200-day MA of 33.42, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 57.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PL:ALE.

Allegroeu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAR	―	€7.76B	10.77	14.21%	0.26%	8.02%	4.67%
ALE	―	zł35.61B	31.54	11.02%	―	6.02%	89.23%
EAT	―	zł3.20B	22.10	9.21%	1.21%	0.79%	―
ANR	―	€550.45M	30.01	8.28%	―	21.94%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%