Sixt SE (SIX2) AI Stock Analysis

• Market Cap: €3.18B
• Dividend Yield: 3.05%
• Average Volume (3M): 40.65K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.07
• Revenue Growth: 10.10%
• EPS Growth: -12.20%
• Country: DE
• Employees: 7,864
• Sector: Industrials
• Sector Strength: 84
• Industry: Rental & Leasing Services
• EPS (TTM): -0.27
• Shares Outstanding: 30,367,110
• 10 Day Avg. Volume: 29,645
• 30 Day Avg. Volume: 40,650
• PEG Ratio: -0.40
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -48.43
• 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: €105.00
• Price Target Upside: 36.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: €87.00 ▲(13.28%Upside)

The overall stock score is primarily driven by strong financial performance and reasonable valuation metrics. However, technical indicators suggest a cautious approach due to bearish trends and potential oversold conditions.

Positive Factors

Expansion Strategy

Sixt is expanding in the US as well as other businesses such as subscription and Van & Truck.

Revenue Performance

Sixt's Q1 print beats revenue expectations, primarily due to stronger-than-expected average selling prices.

Travel Outlook

A solid travel outlook bares very positively for potential upgrades during the year, particularly given improved pricing discipline at peers.

Negative Factors

Economic Concerns

Macro uncertainty remains relatively elevated, which could impact future performance.

Recession Risks

A potential recession could lead to significant estimate cuts given pressure on volumes and rental prices, as well as residuals.

US Tariffs

Implications of US tariffs could affect the company.

Sixt SE Business Overview & Revenue Model

Company Description

Sixt SE, through its subsidiaries, provides mobility services for private and business customers in Germany and internationally. The company engages in the rental of various utility vehicles; and provision of international holiday vehicle rental, car sharing, transfer, and car subscription services. As of December 31, 2021, its corporate and franchise station network comprised approximately 900 stations. The company was founded in 1912 and is headquartered in Pullach, Germany. Sixt SE is a subsidiary of Erich Sixt Vermögensverwaltung GmbH.

How the Company Makes Money

Sixt SE generates its revenue primarily through its vehicle rental business. The company offers short-term and long-term vehicle rentals, with a diverse fleet that includes premium cars, SUVs, and vans. Revenue is driven by rental fees, which vary based on the type of vehicle, rental duration, and additional services or insurances opted by the customer. Sixt also earns income from its leasing operations, providing tailored leasing solutions to businesses and individuals. Furthermore, the company has developed strategic partnerships with airlines, hotels, and travel agencies, which help drive customer acquisition and retention. Ancillary services, such as navigation systems, child seats, and additional insurance packages, contribute to additional revenue streams.

Sixt SE Financial Statement Overview

Summary

Sixt SE demonstrates strong financial performance with significant revenue growth and profitability, a robust cash flow generation, and a moderate leverage position. While the balance sheet is stable, capital efficiency can be improved.

Income Statement

Sixt SE has shown strong revenue growth from 2023 to 2024, increasing by approximately 19.32%. The gross profit margin for 2024 is a robust 61.30%, and the net profit margin is 5.65%, which indicates healthy profitability. However, the net income decreased from the previous year, and the EBITDA margin of 16.21% suggests room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leverage, with a ratio of 1.47 in 2024. The return on equity is 11.46%, reflecting good profitability relative to equity. Meanwhile, the equity ratio is 32.50%, suggesting a solid equity base but potential for improved capital structure.

Cash Flow

Sixt SE shows impressive cash flow performance, with a substantial improvement in free cash flow from negative in 2023 to positive in 2024. The operating cash flow to net income ratio is strong, reflecting efficient cash conversion, and the free cash flow to net income ratio also indicates healthy cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.08B	4.00B	3.62B	3.07B	2.28B	1.53B
Gross Profit	2.89B	3.11B	2.84B	2.44B	1.78B	850.95M
EBITDA	875.19M	712.47M	759.51M	737.24M	611.65M	119.37M
Net Income	254.48M	243.91M	335.14M	385.70M	313.15M	-33.25M
Balance Sheet
Total Assets	7.10B	6.55B	6.45B	5.55B	4.52B	4.43B
Cash, Cash Equivalents and Short-Term Investments	391.21M	163.58M	5.92M	26.57M	265.83M	753.32M
Total Debt	0.00	3.13B	3.30B	2.51B	2.00B	2.38B
Total Liabilities	5.03B	4.42B	4.45B	3.57B	2.77B	3.03B
Stockholders Equity	2.07B	2.13B	2.00B	1.98B	1.75B	1.39B
Cash Flow
Free Cash Flow	652.08M	989.92M	-151.33M	-266.35M	44.09M	647.12M
Operating Cash Flow	738.99M	1.08B	-90.07M	-201.58M	79.11M	669.28M
Investing Cash Flow	-86.57M	-89.60M	-67.22M	-57.20M	-85.06M	12.61M
Financing Cash Flow	-294.13M	-832.87M	136.67M	17.55M	-489.30M	-89.64M

Sixt SE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 76.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SIX2, the sentiment is Neutral. The current price of 76.8 is below the 20-day moving average (MA) of 78.14, below the 50-day MA of 78.66, and above the 200-day MA of 74.26, indicating a neutral trend. The MACD of -1.13 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 28.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:SIX2.

Sixt SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIX2	75 Outperform	€3.18B	13.74	12.50%	3.05%	10.10%	-12.20%
Sector *	67 Neutral	€8.19B	18.40	6.19%	2.76%	2.41%	-40.75%
0NRG		€2.82B	15.23	14.62%	2.77%	―	―
0EXP		€3.99B	13.47	12.41%	2.08%	―	―
0QFU		€5.49B	26.96	3.39%	1.96%	―	―
0LQ4		€4.25B	14.90	15.25%	1.93%	―	―
0O1C		€5.66B	―	-9.83%	1.43%	―	―