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Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh (VONOY)
:VONOY
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Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh
(OTC:VONOY)
Rating:66Neutral
Price Target:
$18.50
▲(10.45%Upside)
Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh (VONOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.46B
Dividend Yield0.24%
Average Volume (3M)2.59K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth21.70%
EPS Growth82.24%
CountryUS
Employees12,306
SectorReal Estate
Sector Strength60
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding1,671,242,900
10 Day Avg. Volume0
30 Day Avg. Volume2,591
Financial Highlights & Ratios
PEG Ratio-1.62
Price to Book (P/B)0.94
Price to Sales (P/S)0.00
P/FCF Ratio10.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.50Price Target Upside10.45% Upside
Rating ConsensusHold
Number of Analyst Covering0
Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh Business Overview & Revenue Model
Company DescriptionVonovia SE is a leading European residential real estate company, primarily focused on managing, developing, and leasing residential properties in Germany, Austria, and Sweden. The company is committed to providing affordable and sustainable housing solutions while enhancing the quality of life for its tenants. Vonovia's core services include property management, maintenance, modernization, and energy-efficient upgrades to its extensive portfolio of residential units.
How the Company Makes MoneyVonovia SE generates revenue primarily through rental income from its vast portfolio of residential properties. The company focuses on maintaining high occupancy rates and optimizing rental yields by providing quality housing and enhancing tenant satisfaction. Additionally, Vonovia invests in modernizing and upgrading its properties, which not only increases property value but can also justify higher rental rates. Beyond rental income, the company earns money through property sales, particularly when strategic opportunities arise to divest non-core assets or capitalize on market conditions. Vonovia also explores revenue streams from ancillary services such as energy supply and facility management, leveraging its scale to offer additional services to tenants. Partnerships with local municipalities and adherence to governmental housing policies play a significant role in shaping Vonovia's operations and revenue strategies.
Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 2.38%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented an optimistic outlook with strong financial performance and positive market conditions. The significant growth in key metrics and positive developments in the transaction and value-add segments were tempered by operational challenges such as the impact of fewer rental units and reliance on one-off land sales in the development segment.Q1-2025 Updates
Positive Updates
Strong Transaction Market
The transaction market in Q1 was strong with a 180% increase over Q1 2024, indicating healthy investor demand and stabilized market yields.
Growth in Key Financial Metrics
Adjusted EBITDA and EBT both increased by 15%, and operating free cash flow grew by 43% to €718 million year-on-year.
Solid Rent Growth
Rent growth was up by 50 basis points to 4.3% year-on-year with market rent growth contribution of 2.9%.
Value-Add Segment Performance
The value-add segment's adjusted EBITDA translated into more than €38 million, which was more than three times the contribution of Q1 last year.
Positive Outlook on Development and Construction Costs
Promising government initiatives to reduce construction costs are expected to provide tailwinds for the development segment.
Debt KPIs Improving
Pro forma LTV is at 45% and net debt-to-EBITDA is at 14x, moving in the right direction as expected.
Negative Updates
Impact of Fewer Rental Units
Despite strong rent growth, adjusted EBITDA from rental was flat due to about 9,000 fewer units compared to Q1 last year.
Delayed Dividend Payments
Dividend payments to Apollo, roughly €150 million, will be made in Q2, affecting cash flow projections.
Challenges in Development Segment
Development segment's Q1 profitability was largely driven by one-off land sales, indicating reliance on disposals rather than operational growth.
Company Guidance
During the Vonovia Q1 2025 results conference call, the company provided optimistic guidance for the fiscal year. They reported a rent growth increase of 50 basis points to 4.3% and highlighted double-digit year-on-year growth in key financial metrics such as adjusted EBITDA, adjusted EBT, and operating free cash flow. The transaction market showed a strong performance with a 180% increase compared to Q1 2024, driven by healthy investor demand and stabilized market yields. The company's debt KPIs, including LTV and net debt-to-EBITDA, are trending positively, supporting their BBB+ rating. Vonovia maintained their guidance for 2025, expressing confidence in achieving their near and medium-term objectives, despite the unchanged guidance amidst ongoing market challenges.Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh Financial Statement Overview
Summary
Vonovia SE exhibits a mixed financial profile. While revenue growth and strong cash flow generation are positive, profitability remains a significant concern due to recurring net losses. The balance sheet's high leverage increases risks, requiring strategic actions to enhance profitability and manage debt levels effectively. The company's cash flow strength is a notable positive aspect.Income Statement
Vonovia SE's income statement reveals a mixed performance. The company experienced revenue growth from 2024 to TTM (Trailing-Twelve-Months), but gross profit margin declined significantly, indicating potential cost pressures. The net profit margin is negative due to substantial net losses, posing a challenge to profitability. EBIT and EBITDA margins are also under pressure, reflecting operational inefficiencies.62
Positive
Balance Sheet
The balance sheet highlights high leverage, with a significant debt-to-equity ratio, presenting a risk in a rising interest rate environment. Return on Equity (ROE) is negative due to net losses, impacting shareholder value. The equity ratio is moderate, indicating a balanced asset structure but necessitates cautious financial management to improve capital structure.58
Neutral
Cash Flow
Vonovia SE's cash flow statement shows strength with consistent free cash flow generation and positive operating cash flow. The operating cash flow to net income ratio is robust, reflecting strong cash conversion despite reported losses. Free cash flow has grown over the periods, enhancing liquidity and financial flexibility.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.94B | 5.23B | 5.15B | 3.62B | 3.15B |
| Gross Profit | 2.25B | 2.47B | 2.86B | 2.23B | 2.08B |
| EBITDA | 408.00M | -7.90B | 1.26B | 9.81B | 5.51B |
| Net Income | -896.00M | -6.29B | -669.40M | 2.68B | 3.27B |
Balance Sheet | |||||
| Total Assets | 90.24B | 92.00B | 101.39B | 105.91B | 62.42B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 1.59B | 1.20B | 1.32B | 453.40M |
| Total Debt | 43.21B | 43.49B | 45.69B | 47.69B | 24.63B |
| Total Liabilities | 62.11B | 62.05B | 66.95B | 69.78B | 37.59B |
| Stockholders Equity | 24.00B | 25.68B | 31.33B | 33.29B | 24.15B |
Cash Flow | |||||
| Free Cash Flow | 2.40B | 1.90B | 1.86B | 1.47B | 1.16B |
| Operating Cash Flow | 2.40B | 1.90B | 2.08B | 1.82B | 1.43B |
| Investing Cash Flow | -187.60M | -825.90M | 938.20M | -19.12B | -1.73B |
| Financing Cash Flow | -1.82B | -961.00M | -3.15B | 18.13B | 402.60M |
Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh Technical Analysis
Positive
16.75
Price Trends
16.57
Positive
15.55
Positive
15.50
Positive
Market Momentum
-0.08
Positive
50.94
Neutral
44.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VONOY, the sentiment is Positive. The current price of 16.75 is below the 20-day moving average (MA) of 16.95, above the 50-day MA of 16.57, and above the 200-day MA of 15.50, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 44.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VONOY.
Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.02B | 22.92 | 8.16% | ― | 13.63% | 78.40% | |
77 Outperform | $35.73B | 295.79 | 1.47% | ― | 11.27% | -60.22% | |
76 Outperform | $41.58B | 43.19 | 12.15% | ― | 13.14% | 1.70% | |
74 Outperform | $2.59B | 16.49 | 9.53% | ― | 1.24% | 1205.18% | |
66 Neutral | $27.46B | ― | -2.93% | 0.24% | 21.70% | 82.24% | |
63 Neutral | $6.74B | 18.39 | -1.93% | 7.18% | 4.59% | -25.63% | |
60 Neutral | $2.27B | 31.32 | 5.32% | 0.94% | 13.87% | 90.42% |
* Real Estate Sector Average
Performance Comparison
VONOY
Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh
16.75
1.73
11.52%
CBRE
CBRE Group
143.07
43.91
44.28%
CSGP
CoStar Group
85.01
10.17
13.59%
JLL
Jones Lang Lasalle
253.48
17.18
7.27%
NMRK
Newmark Group
13.10
0.91
7.47%
CWK
Cushman & Wakefield
11.41
-1.66
-12.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.