GICS Sector : Consumer Cyclical
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's Q1 2025-2026 results demonstrate a robust financial performance, driven by its diversified international portfolio and growth businesses. Sales grew 3.4% to EUR 7.6 billion, with adjusted EBIT increasing 11% to EUR 311 million, marking the 12th consecutive quarter of profitability growth. Earnings per share (EPS) rose 23% to EUR 0.37, beating expectations. The company's online share reached a record 30%, and Net Promoter Score (NPS) hit 61, indicating strong customer trust.
Publication Date: Feb -27
The company's growth businesses, such as Service & Solutions and Retail Media, performed exceptionally well, with significant increases in income. Refurbished unit sales grew almost 400%, contributing to the overall growth. CECONOMY's diversified international portfolio showed strong performances in Turkiye, Spain, Hungary, and Italy, while Germany and Austria saw softer demand.
CECONOMY generated EUR 1.4 billion in positive free cash flow, driven by strong operating performance and seasonal working capital inflows, closing the quarter with a strong net position of EUR 2 billion. The company's cash generation capabilities are expected to support its growth plans.
CECONOMY confirms its positive outlook for the full year 2025-2026, expecting growth in sales and profitability to continue. Analysts estimate next year's revenue growth at 2.4%. With a P/E Ratio of -1071.13 and a P/S Ratio of 0.09, the company's valuation appears to be reasonable, considering its growth prospects. The EV/EBITDA ratio of 2.59 suggests that CECONOMY's enterprise value is relatively low compared to its EBITDA. The company's Free Cash Flow Yield of 32.07% is also attractive, indicating a strong ability to generate cash.
CECONOMY is making progress towards its midterm targets, and its strategy is paying off in a competitive and volatile retail environment. The company is ready to accelerate growth with its new strategic partner, JD.com, focusing on logistics, assortment, and technology. The expected closing of the JD.com transaction within the first half of this calendar year, pending regulatory approvals, is expected to further support CECONOMY's growth plans.
Austria delays JD.com takeover clearance for Ceconomy
Mar -30
JD.com (JD) Launches Joybuy Marketplace in Europe, Acquires Ceconomy to Challenge Amazon
Mar -23
Assessing Ceconomy (XTRA:CEC) Valuation After Strong Multi‑Year Returns And Recent Quiet Share Price Moves
Mar -16
JD.com launches Joybuy in Europe, targeting Amazon
Mar -16
JD.com launches Joybuy in Europe, targeting Amazon
Mar -16
Ceconomy plans CEO transition as Deissner prepares to step down – report
Mar -09
Ceconomy to propose CFO Remko Rijnders to replace outgoing CEO
Mar -06
Ceconomy AG (MTTRY) Q1 2026 Earnings Call Highlights: Strong Online Growth and Record Customer ...
Feb -11
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.
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.
Ceconomy AG offers a wide range of consumer electronics products including TVs, laptops, smartphones, and gaming consoles from top brands.
Ceconomy AG provides a variety of home appliances such as refrigerators, washing machines, and air conditioners from leading manufacturers.
Ceconomy AG offers IT and telecom solutions including software, hardware, and services for businesses and individuals.
Ceconomy AG provides a range of services including installation, maintenance, and repair services for consumer electronics and home appliances.
Ceconomy AG operates an e-commerce platform that allows customers to purchase products online and have them delivered or picked up in-store.
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.
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.
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.
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.
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.
| Value | |
|---|---|
| Debt Weight | 84.80% |
| Debt Cost | 6.81% |
| Equity Weight | 15.20% |
| Equity Cost | 14.92% |
| WACC | 8.04% |
| Leverage | 558.10% |
Value: 9.6
Growth: 4.0
Quality: 4.7
Yield: 5.6
Momentum: 1.0
Volatility: 5.0
1-Year Total Return ->
Value: 6.2
Growth: 2.4
Quality: 2.5
Yield: 0.6
Momentum: 8.0
Volatility: 3.0
1-Year Total Return ->
Value: 7.6
Growth: 2.4
Quality: 3.0
Yield: 0.0
Momentum: 8.0
Volatility: 1.7
1-Year Total Return ->
Value: 1.5
Growth: 6.4
Quality: 6.3
Yield: 0.6
Momentum: 1.0
Volatility: 5.0
1-Year Total Return ->
Value: 5.7
Growth: 5.8
Quality: 2.7
Yield: 4.4
Momentum: 0.5
Volatility: 1.7
1-Year Total Return ->