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CEC

Ceconomy XTRA:CEC Stock Report

Last Price

€3.21

Market Cap

€1.2b

7D

2.2%

1Y

-26.4%

Updated

15 May, 2022

Data

Company Financials +
CEC fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends4/6

CEC Stock Overview

Ceconomy AG engages in the consumer electronics retail business.

Ceconomy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ceconomy
Historical stock prices
Current Share Price€3.21
52 Week High€5.20
52 Week Low€2.83
Beta2.18
1 Month Change-4.52%
3 Month Change-11.63%
1 Year Change-26.35%
3 Year Change-43.12%
5 Year Change-89.52%
Change since IPO-89.74%

Recent News & Updates

May 08
Here's Why Ceconomy (ETR:CEC) Has A Meaningful Debt Burden

Here's Why Ceconomy (ETR:CEC) Has A Meaningful Debt Burden

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

CECDE Specialty RetailDE Market
7D2.2%1.9%1.2%
1Y-26.4%-40.5%-12.2%

Return vs Industry: CEC exceeded the German Specialty Retail industry which returned -40.5% over the past year.

Return vs Market: CEC underperformed the German Market which returned -12.2% over the past year.

Price Volatility

Is CEC's price volatile compared to industry and market?
CEC volatility
CEC Average Weekly Movement6.0%
Specialty Retail Industry Average Movement6.7%
Market Average Movement6.4%
10% most volatile stocks in DE Market10.7%
10% least volatile stocks in DE Market3.5%

Stable Share Price: CEC is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CEC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a45,507Karsten Wildbergerhttps://www.ceconomy.de

Ceconomy AG engages in the consumer electronics retail business. The company operates approximately 850 stores in 14 countries under the MediaMarkt brand; and approximately 170 stores in 3 countries under the Saturn brand. It also operates Flip4New for selling used electronic articles online.

Ceconomy Fundamentals Summary

How do Ceconomy's earnings and revenue compare to its market cap?
CEC fundamental statistics
Market Cap€1.16b
Earnings (TTM)€191.00m
Revenue (TTM)€20.75b

6.0x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CEC income statement (TTM)
Revenue€0
Cost of Revenue€0
Gross Profit€0
Other Expenses€0
Earnings€0

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)0.53
Gross Margin17.22%
Net Profit Margin0.92%
Debt/Equity Ratio329.3%

How did CEC perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is Ceconomy undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CEC (€3.21) is trading below our estimate of fair value (€10.98)

Significantly Below Fair Value: CEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CEC is good value based on its PE Ratio (6x) compared to the German Specialty Retail industry average (11.1x).

PE vs Market: CEC is good value based on its PE Ratio (6x) compared to the German market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: CEC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CEC is good value based on its PB Ratio (1.5x) compared to the DE Specialty Retail industry average (1.9x).


Future Growth

How is Ceconomy forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEC's forecast earnings growth (17.1% per year) is above the savings rate (-0.05%).

Earnings vs Market: CEC's earnings (17.1% per year) are forecast to grow faster than the German market (7.9% per year).

High Growth Earnings: CEC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CEC's revenue (2% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: CEC's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CEC's Return on Equity is forecast to be low in 3 years time (19.4%).


Past Performance

How has Ceconomy performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CEC has a large one-off gain of €51.0M impacting its March 31 2022 financial results.

Growing Profit Margin: CEC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CEC has become profitable over the past 5 years, growing earnings by -2.5% per year.

Accelerating Growth: CEC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CEC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (52.6%).


Return on Equity

High ROE: CEC's Return on Equity (23.2%) is considered high.


Financial Health

How is Ceconomy's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CEC's short term assets (€9.0B) do not cover its short term liabilities (€9.3B).

Long Term Liabilities: CEC's short term assets (€9.0B) exceed its long term liabilities (€2.6B).


Debt to Equity History and Analysis

Debt Level: CEC's net debt to equity ratio (139.6%) is considered high.

Reducing Debt: CEC's debt to equity ratio has increased from 62.9% to 329.3% over the past 5 years.

Debt Coverage: CEC's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: CEC's interest payments on its debt are well covered by EBIT (53x coverage).


Balance Sheet


Dividend

What is Ceconomy current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.30%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CEC's dividend (5.3%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: CEC's dividend (5.3%) is in the top 25% of dividend payers in the German market (4.29%)


Stability and Growth of Payments

Stable Dividend: CEC's dividend payments have been volatile in the past 10 years.

Growing Dividend: CEC's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.1%), CEC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.1%), CEC's dividend payments are well covered by cash flows.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Karsten Wildberger (52 yo)

0.75

Tenure

€3,975,000

Compensation

Dr. Karsten Wildberger, Ph D., MBA, has been Chief Executive Officer, Chairman & Member of Management Board and Labor Director at Ceconomy AG since August 1, 2021. He had been the Member of Management Boar...


CEO Compensation Analysis

Compensation vs Market: Karsten's total compensation ($USD4.14M) is above average for companies of similar size in the German market ($USD1.48M).

Compensation vs Earnings: Insufficient data to compare Karsten's compensation with company performance.


Leadership Team

Experienced Management: CEC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: CEC's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ceconomy AG's employee growth, exchange listings and data sources


Key Information

  • Name: Ceconomy AG
  • Ticker: CEC
  • Exchange: XTRA
  • Founded: NaN
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Implied Market Cap: €1.156b
  • Shares outstanding: 359.42m
  • Website: https://www.ceconomy.de

Number of Employees


Location

  • Ceconomy AG
  • Kaistrasse 3
  • Düsseldorf
  • North Rhine-Westphalia
  • 40221
  • Germany

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.