Deutsche Wohnen (DWNI) AI Stock Analysis

• Market Cap: $8.59B
• Dividend Yield: 0.18%
• Average Volume (3M): 193.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 20.04%
• EPS Growth: 70.70%
• Country: DE
• Employees: 749
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.72
• Shares Outstanding: 400,297,000
• 10 Day Avg. Volume: 139,507
• 30 Day Avg. Volume: 193,193
• PEG Ratio: 0.20
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 7.72
• P/FCF Ratio: 12.55
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: 13.96
• Enterprise Value/Gross Profit: 30.82
• Enterprise Value/Ebitda: -147.76
• 1Y Price Target: $23.18
• Price Target Upside: 6.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: €22.50 ▲(2.97% Upside)

Deutsche Wohnen's overall stock score is primarily impacted by its financial performance, which shows significant challenges due to declining revenue and increasing debt. Technical analysis indicates a bearish trend with limited momentum, while valuation metrics highlight concerns with negative earnings and low dividend yield. These factors collectively suggest a cautious outlook for the stock.

Deutsche Wohnen Business Overview & Revenue Model

Company Description

Deutsche Wohnen SE develops and manages residential properties in Germany. The company operates through four segments: Residential Property Management, Disposals, Nursing home operators, and Nursing Properties. Its property portfolio consists of approximately 160,000 residential and commercial units; nursing properties with approximately 10,580 beds; and apartments for assisted living. The company manages and markets nursing and residential care homes. Deutsche Wohnen SE was founded in 1924 and is headquartered in Berlin, Germany. Deutsche Wohnen SE operates as a subsidiary of Vonovia SE.

How the Company Makes Money

Deutsche Wohnen generates revenue primarily through rental income from its extensive portfolio of residential properties. The company benefits from long-term leases which provide a stable and predictable cash flow. In addition to rental income, Deutsche Wohnen engages in property development projects, where it invests in the construction of new residential units or the refurbishment of existing properties, thereby increasing the value of its portfolio. The company may also derive revenue from ancillary services related to property management and maintenance. Significant partnerships with local authorities and investment in urban development projects can further contribute to its earnings by enhancing property values and expanding its market reach.

Deutsche Wohnen Financial Statement Overview

Summary

Deutsche Wohnen has faced significant financial challenges with declining revenue, increasing debt, and negative profitability. Despite maintaining a stable equity ratio, high leverage and erratic cash flow trends pose risks. The company needs to address operational inefficiencies and reduce debt to improve its financial health.

Income Statement

Deutsche Wohnen's revenue has decreased significantly from 2019 to 2024, with a notable decline in profitability. The company's gross profit margin has decreased, and it posted negative EBIT and EBITDA in recent years, indicating operational challenges. Net income has also been negative since 2021, reflecting poor financial performance.

Balance Sheet

The balance sheet shows a relatively stable equity base, but the debt-to-equity ratio has increased over the years, indicating rising leverage. Despite this, the equity ratio remains reasonable, suggesting some level of financial stability. However, high debt levels may pose risks in a volatile market.

Cash Flow

The cash flow statement indicates a strong operating cash flow with positive free cash flow in 2024. However, historical data shows fluctuations, with negative free cash flow in some years. The operating cash flow to net income ratio is high, reflecting strong cash generation relative to net income, yet volatility in profitability impacts overall cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.18B	1.06B	866.30M	1.13B	2.72B
Gross Profit	580.55M	313.10M	381.10M	261.40M	596.30M	951.60M
EBITDA	-121.10M	-352.90M	-2.94B	-344.10M	2.14B	2.46B
Net Income	-708.90M	-590.50M	-2.70B	-434.10M	877.20M	1.51B
Balance Sheet
Total Assets	26.17B	26.36B	27.19B	31.53B	33.23B	30.80B
Cash, Cash Equivalents and Short-Term Investments	466.70M	386.60M	157.10M	184.30M	676.70M	926.90M
Total Debt	86.40M	8.36B	8.55B	9.07B	4.20B	5.30B
Total Liabilities	12.83B	12.95B	13.19B	14.76B	16.03B	16.96B
Stockholders Equity	12.97B	13.03B	13.61B	16.30B	16.73B	13.39B
Cash Flow
Free Cash Flow	979.80M	725.50M	384.80M	-640.20M	-1.08B	-1.21B
Operating Cash Flow	807.40M	725.50M	384.80M	364.90M	465.20M	504.50M
Investing Cash Flow	-832.00M	-121.90M	291.30M	5.20M	-698.20M	-899.60M
Financing Cash Flow	-404.80M	-417.10M	-658.90M	-862.50M	326.40M	292.80M

Deutsche Wohnen Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DWNI, the sentiment is Neutral. The current price of 21.85 is above the 20-day moving average (MA) of 21.40, below the 50-day MA of 22.08, and below the 200-day MA of 22.46, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 83.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DWNI.

Deutsche Wohnen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEG	72 Outperform	€5.01B	8.25	8.02%	4.05%	5.99%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AT1	64 Neutral	€3.48B	4.72	9.56%	―	-1.82%	―
VNA	56 Neutral	€22.46B	58.72	1.29%	4.55%	28.86%	―
O5G	53 Neutral	€7.00B	―	-0.39%	―	-9.69%	97.58%
DWNI	51 Neutral	$8.59B	―	-3.76%	0.18%	20.04%	70.70%