Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh (VONOY) AI Stock Analysis

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Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh

(OTC:VONOY)

Rating:62Neutral

Price Target:

$17.50

▲(7.36% Upside)

Vonovia SE's overall score is driven by strong earnings call sentiment and solid cash flow management. However, high leverage, operational challenges, and high valuation weigh on the score. The company needs to focus on operational efficiency and debt reduction to improve its financial health.

Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh (VONOY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$27.87B

Dividend Yield4%

Average Volume (3M)12.84K

Price to Earnings (P/E)66.9

Beta (1Y)0.51

Revenue Growth29.07%

EPS GrowthN/A

CountryUS

Employees12,306

SectorReal Estate

Sector Strength48

IndustryReal Estate - Services

Share Statistics

EPS (TTM)0.21

Shares Outstanding1,671,242,900

10 Day Avg. Volume3,858

30 Day Avg. Volume12,837

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.96

Enterprise Value/Revenue14.49

Enterprise Value/Gross Profit56.19

Enterprise Value/Ebitda38.32

Forecast

1Y Price Target

$17.00

Price Target Upside4.29% Upside

Rating ConsensusHold

Number of Analyst Covering1

Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh 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 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:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive overall sentiment with strong financial performance, strategic growth in rent and EBITDA, successful integration of Deutsche Wohnen, and effective financing management. However, challenges such as higher financing expenses and the need to manage a large development land bank present areas for improvement.

Q2-2025 Updates

Positive Updates

Strong H1 Performance

Vonovia reported a strong first half with a 1.3% like-for-like value growth of their standing portfolio and double-digit growth in EBITDA, EBITA, and operating free cash flow.

Organic Rent Growth

The Rental segment reported organic rent growth of 4.4% year-on-year, contributing to the company's strong performance.

Increased Guidance

Vonovia increased its 2025 guidance: organic rent growth greater than 4%, adjusted EBITDA range increased by EUR 100 million, and rental income expected at the upper end of the guided range.

Successful Financing Management

The company successfully managed its financing position with EUR 1.3 billion of convertibles at attractive cash coupons and a bond buyback with an aggregate volume of EUR 800 million.

Deutsche Wohnen Integration

The DPLTA process between Vonovia and Deutsche Wohnen has been completed, allowing full integration and potential leverage of the larger scale.

Negative Updates

Higher Financing Expenses

Despite growth, Vonovia experienced higher financing expenses impacting adjusted EBT, though it still delivered 11% growth.

Impairment on Development Projects

An impairment loss of EUR 340 million was recorded on project developments due to conservative valuation approaches and cost assumptions.

Challenges with Land Bank

The company has a large land bank which it considers too big, leading to the need for selective land sales to optimize capital deployment.

Company Guidance

During the Vonovia Interim Results H1 2025 Analyst and Investor Conference Call, several key metrics and guidance updates were provided. The company reported a like-for-like value growth of 1.3% in its standing portfolio for the first half of 2025. Organic rent growth was noted at 4.4% year-on-year, contributing to double-digit growth in EBITDA, EBITA, and operating free cash flow. Vonovia managed its financing position with EUR 1.3 billion in convertibles and an EUR 800 million bond buyback. The integration of Deutsche Wohnen was completed, allowing for potential efficiencies. Based on strong performance, Vonovia increased its 2025 guidance, expecting organic rent growth to surpass 4%, with rental income and adjusted EBITDA forecasted at the upper end of the guided range, and an adjusted EBITDA range increased by EUR 100 million.

Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh Financial Statement Overview

Summary

Vonovia SE shows mixed financial performance. Positive revenue growth and strong cash flow management are offset by operational challenges and high leverage. Prioritizing operational efficiency and debt reduction is crucial for financial stability.

Income Statement

Positive

Vonovia SE's income statement shows mixed performance. The TTM data indicates a recovery with a positive net profit margin of 6.02% and a significant revenue growth rate of 90.5%. However, the EBIT margin is negative, suggesting operational challenges. Historical data shows fluctuating profitability with a notable loss in 2023. The company needs to stabilize its operational efficiency to improve its financial health.

Balance Sheet

Neutral

The balance sheet reveals a high debt-to-equity ratio of 1.76 in the TTM period, indicating significant leverage. The return on equity is low at 1.56%, reflecting limited profitability relative to equity. The equity ratio is not provided, but the high leverage poses a risk. The company should focus on reducing debt to enhance financial stability.

Cash Flow

Positive

Cash flow analysis shows a positive trend with a free cash flow growth rate of 10.75% in the TTM period. The operating cash flow to net income ratio is 0.36, indicating decent cash generation relative to net income. The free cash flow to net income ratio is consistently 1.0, suggesting effective cash management. Continued focus on cash flow generation will support financial resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.69B	5.94B	5.23B	5.15B	3.62B	3.15B
Gross Profit	1.47B	2.25B	2.47B	2.86B	2.23B	2.08B
EBITDA	2.15B	408.00M	-7.90B	1.26B	9.81B	5.51B
Net Income	379.10M	-896.00M	-6.29B	-669.40M	2.68B	3.27B
Balance Sheet
Total Assets	90.14B	90.24B	92.00B	101.39B	105.91B	62.42B
Cash, Cash Equivalents and Short-Term Investments	2.18B	2.02B	1.59B	1.20B	1.32B	453.40M
Total Debt	42.67B	43.21B	43.49B	45.69B	47.69B	24.63B
Total Liabilities	61.80B	62.11B	62.05B	66.95B	69.78B	37.59B
Stockholders Equity	24.19B	24.00B	25.68B	31.33B	33.29B	24.15B
Cash Flow
Free Cash Flow	2.86B	2.40B	1.90B	1.86B	1.47B	1.16B
Operating Cash Flow	2.86B	2.40B	1.90B	2.08B	1.82B	1.43B
Investing Cash Flow	-221.20M	-187.60M	-825.90M	938.20M	-19.12B	-1.73B
Financing Cash Flow	-2.51B	-1.82B	-961.00M	-3.15B	18.13B	402.60M

Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh Technical Analysis

Technical Analysis Sentiment

Negative

Last Price16.30

Price Trends

50DMA

16.61

Negative

100DMA

16.26

Positive

200DMA

15.46

Positive

Market Momentum

MACD

0.03

Negative

RSI

46.15

Neutral

STOCH

47.90

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VONOY, the sentiment is Negative. The current price of 16.3 is below the 20-day moving average (MA) of 16.40, below the 50-day MA of 16.61, and above the 200-day MA of 15.46, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
JLL	78 Outperform	$14.47B	26.29	8.40%	―	13.47%	47.52%
CWK	75 Outperform	$3.67B	18.13	11.62%	―	4.63%	887.64%
CBRE	74 Outperform	$48.63B	45.78	13.13%	―	14.96%	19.11%
CSGP	73 Outperform	$37.86B	350.92	1.30%	―	12.18%	-51.21%
NMRK	66 Neutral	$3.24B	42.95	6.00%	0.66%	16.29%	69.89%
Sector *	63 Neutral	$7.02B	13.47	-0.52%	7.00%	3.61%	-22.78%
VONOY	62 Neutral	$27.87B	66.89	1.27%	4.00%	29.07%	―

* Real Estate Sector Average

Performance Comparison

VONOY

Vonovia SE Shs Unsponsored American Depositary Receipt Repr 1/2 Sh

16.30

-0.22

-1.33%

CBRE

CBRE Group

161.99

47.37

41.33%

CSGP

CoStar Group

90.33

13.22

17.14%

JLL

Jones Lang Lasalle

304.66

52.38

20.76%

NMRK

Newmark Group

18.10

4.67

34.77%

CWK

Cushman & Wakefield

15.84

2.97

23.08%

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.Date of analysis: Aug 20, 2025