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1. Company Snapshot

1.a. Company Description

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.


In addition, the company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand.It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe.The company is based in Düsseldorf, Germany.

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1.b. Last Insights on CEC

Ceconomy AG's recent performance was driven by strong earnings, with adjusted EBIT increasing by 26% in Q4 2024. Revenue growth of 8.4% in Q1 2025 and robust sales growth in key markets such as Poland, contributed to the company's performance. Additionally, the company's intrinsic value is estimated to be 57% above its share price, according to a recent analysis. With a strong earnings track record and growing revenue, Ceconomy AG's fundamentals are improving.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Should JD.com’s (JD) Ceconomy Bid and Margin Strain Require Action From Investors?

Dec -04

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Italy grants conditional clearance to JD.com’s acquisition of Ceconomy

Nov -28

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Is Ceconomy Still a Bargain After Surging 65% Ahead of 2025?

Sep -28

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Ceconomy (XTRA:CEC): Taking a Fresh Look at Valuation Following a Period of Steady Gains

Sep -27

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Analyzing JD.com’s Valuation After EUR 2.2B Ceconomy Acquisition Bid in 2025

Sep -27

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German Federal Cartel Office Approves JD.com’s (JD) to Acquire Stake in Ceconomy

Sep -24

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.18%)

6. Segments

Product

Expected Growth: 1.2%

Ceconomy AG's 1.2% growth is driven by increasing demand for consumer electronics, strategic partnerships, and expansion into emerging markets. Additionally, the company's focus on omnichannel retailing, investments in digital transformation, and cost-saving initiatives have contributed to its growth momentum.

Services & Solutions

Expected Growth: 0.8%

Ceconomy AG's Services & Solutions segment growth of 0.8 is driven by increasing demand for digital services, expansion of online marketplaces, and strategic partnerships. Additionally, the company's focus on omnichannel retailing, investments in data analytics, and cost optimization initiatives contribute to its growth.

7. Detailed Products

Consumer Electronics

Ceconomy AG offers a wide range of consumer electronics products including TVs, laptops, smartphones, and gaming consoles from top brands.

Home Appliances

Ceconomy AG provides a variety of home appliances such as refrigerators, washing machines, and air conditioners from leading manufacturers.

IT and Telecom Solutions

Ceconomy AG offers IT and telecom solutions including software, hardware, and services for businesses and individuals.

Services

Ceconomy AG provides a range of services including installation, maintenance, and repair services for consumer electronics and home appliances.

E-commerce Platform

Ceconomy AG operates an e-commerce platform that allows customers to purchase products online and have them delivered or picked up in-store.

8. Ceconomy AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Ceconomy AG operates in the retail industry, where substitutes are readily available. However, the company's strong brand presence and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Ceconomy AG's customers have a high bargaining power due to the availability of substitutes and the company's dependence on a few large customers.

Bargaining Power Of Suppliers

Ceconomy AG has a diversified supplier base, which reduces the bargaining power of suppliers. The company's large scale of operations also gives it negotiating power over suppliers.

Threat Of New Entrants

The retail industry has high barriers to entry, including significant capital requirements and established brand presence. This reduces the threat of new entrants for Ceconomy AG.

Intensity Of Rivalry

The retail industry is highly competitive, with many established players competing for market share. Ceconomy AG faces intense rivalry from competitors such as Amazon and other online retailers.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 84.80%
Debt Cost 6.81%
Equity Weight 15.20%
Equity Cost 14.92%
WACC 8.04%
Leverage 558.10%

11. Quality Control: Ceconomy AG passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BHG

A-Score: 4.0/10

Value: 7.6

Growth: 2.4

Quality: 2.9

Yield: 0.0

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

Stock-Card
Ceconomy

A-Score: 3.7/10

Value: 6.4

Growth: 2.7

Quality: 2.3

Yield: 0.6

Momentum: 8.0

Volatility: 2.0

1-Year Total Return ->

Stock-Card
Fenix Outdoor

A-Score: 3.6/10

Value: 5.2

Growth: 4.0

Quality: 3.8

Yield: 3.1

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Momentum Group

A-Score: 3.6/10

Value: 1.6

Growth: 6.4

Quality: 6.0

Yield: 0.6

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

Stock-Card
WH Smith

A-Score: 3.5/10

Value: 5.7

Growth: 5.8

Quality: 3.4

Yield: 4.4

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.37$

Current Price

4.37$

Potential

-0.00%

Expected Cash-Flows