XTRA:WEW

Stock Analysis Report

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Executive Summary

Westwing Group AG engages in the home and living e-commerce business. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Westwing Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WEW is more volatile than 90% of German stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: WEW's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of German stocks.


Market Performance


7 Day Return

6.7%

WEW

-1.6%

DE Online Retail

0.7%

DE Market


1 Year Return

510.0%

WEW

92.9%

DE Online Retail

0.6%

DE Market

Return vs Industry: WEW exceeded the German Online Retail industry which returned 94.1% over the past year.

Return vs Market: WEW exceeded the German Market which returned 1.1% over the past year.


Shareholder returns

WEWIndustryMarket
7 Day6.7%-1.6%0.7%
30 Day0.1%-3.3%7.8%
90 Day74.0%3.3%1.7%
1 Year510.0%510.0%93.5%92.9%3.9%0.6%
3 Yearn/a96.9%99.3%4.0%-5.0%
5 Yearn/a62.1%58.9%21.4%4.2%

Long-Term Price Volatility Vs. Market

How volatile is Westwing Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

6.67x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WEW (€27.67) is trading above our estimate of fair value (€15.27)

Significantly Below Fair Value: WEW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WEW is good value based on its PE Ratio (-40.7x) compared to the DE Online Retail industry average (53.3x).

PE vs Market: WEW is good value based on its PE Ratio (-40.7x) compared to the German market (23x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WEW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WEW is overvalued based on its PB Ratio (6.7x) compared to the DE Online Retail industry average (5.8x).


Next Steps

Future Growth

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

-24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEW's earnings are forecast to decline over the next 3 years (-24.9% per year).

Earnings vs Market: WEW's earnings are forecast to decline over the next 3 years (-24.9% per year).

High Growth Earnings: WEW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WEW's revenue (17% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: WEW's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WEW's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Westwing Group performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEW has a large one-off loss of €2.4M impacting its September 30 2020 financial results.

Growing Profit Margin: WEW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WEW has become profitable over the past 5 years, growing earnings by 14.2% per year.

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

Earnings vs Industry: WEW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (30.6%).


Return on Equity

High ROE: WEW's Return on Equity (0.8%) is considered low.


Next Steps

  • Explore strong past performing companies in the Retail industry.

Financial Health

How is Westwing Group's financial position?


Financial Position Analysis

Short Term Liabilities: WEW's short term assets (€144.8M) exceed its short term liabilities (€85.3M).

Long Term Liabilities: WEW's short term assets (€144.8M) exceed its long term liabilities (€27.9M).


Debt to Equity History and Analysis

Debt Level: WEW is debt free.

Reducing Debt: WEW has no debt compared to 5 years ago when its debt to equity ratio was 20%.

Debt Coverage: WEW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WEW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Westwing Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WEW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WEW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WEW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WEW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WEW's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.8yrs

Average board tenure


CEO

Stefan Smalla (43 yo)

9.83yrs

Tenure

Mr. Stefan Smalla is the Founder and has been Chief Executive Officer & Member of Management Board at Westwing Group AG since 2011. Prior to founding Westwing, Mr. Smalla worked at Bain & Co. as a Manager....


Board Members

NamePositionTenureCompensationOwnership
Antonella Mei-Pochtler
Deputy Chairman of Supervisory Boardno datano datano data
Michael Hoffmann
Member of Supervisory Board2.83yrsno datano data
Thomas Harding
Member of Supervisory Board2.83yrsno datano data
Christoph Barchewitz
Chairman of Supervisory Board2.83yrsno datano data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Board: WEW's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

Westwing Group AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Westwing Group AG
  • Ticker: WEW
  • Exchange: XTRA
  • Founded: 2011
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: €556.091m
  • Shares outstanding: 20.10m
  • Website: https://www.westwing.com

Number of Employees


Location

  • Westwing Group AG
  • Moosacher Strasse 88
  • Munich
  • Bavaria
  • 80809
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WEWDB (Deutsche Boerse AG)YesBearer SharesDEEUROct 2018
WEWXTRA (XETRA Trading Platform)YesBearer SharesDEEUROct 2018
WEWDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEUROct 2018

Biography

Westwing Group AG engages in the home and living e-commerce business. The company operates through two segments, DACH and International. It offers textile products, rugs, furniture products, decoration ite...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 21:13
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.