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1. Company Snapshot

1.a. Company Description

Delivery Hero SE offers online food ordering and delivery services.It operates approximately in 50 countries in Europe, the Middle East, North Africa, Asia, and the Americas.The company was founded in 2011 and is headquartered in Berlin, Germany.

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1.b. Last Insights on DHER

Delivery Hero SE faces mounting pressure from major shareholders, including Aspex Management, Broad Peak Investment Advisers, and PSquared Asset Management, who are pushing for strategic changes, potentially including a sale or divestments. This comes amid a 53% stock slide, raising concerns about the company's progress in streamlining loss-making operations. Despite an intrinsic calculation suggesting the stock is 49% undervalued, with an estimated fair value of €31.97, investor confidence remains shaken. The company previously reported improved earnings, with sales growth to €6,880 million and a reduced net loss.

1.c. Company Highlights

2. Delivery Hero's Q2 2025 Earnings: A Strong Performance

Delivery Hero's Q2 2025 trading update highlights the company's strong financial performance, with revenue growing by 27% year-over-year and adjusted EBITDA increasing by 71% to EUR 411 million, representing a margin expansion of 70 basis points compared to the prior year period. The company's EPS came out at -0.29094, beating estimates at -2.67093. The significant improvement in adjusted EBITDA was driven by the company's global technology platform, which has reached an important milestone with the end-to-end integration of Glovo.

Publication Date: Aug -29

📋 Highlights
  • Strong Financial Growth:: GMV up 11%, revenue +27%, and adjusted EBITDA surged 71% to EUR 411 million (margin expansion of 70 bps).
  • Glovo Integration Success:: Operational gains include 6.7% conversion rate improvement, 9.8% fewer late orders, and 9.5% lower cost per order.
  • Multi-Vertical Strategy:: 52% of GMV from multi-vertical users, who spend 5.2x more than single-vertical customers.
  • Asia Segment Recovery:: GMV growth accelerated to 11% (constant currency), driven by South Korea’s own delivery model boosting order frequency and retention.
  • Revised EBITDA Guidance:: Adjusted EBITDA outlook narrowed to EUR 900–940 million due to FX headwinds, despite EUR 2.8 billion liquidity and EUR 900 million in bond repurchases.

Operational Improvements

The integration of Glovo has unlocked significant operational improvements, including a 6.7% conversion rate improvement, 9.8% fewer late orders, and a 9.5% reduction in cost per order. The company's multi-vertical strategy is also paying off, with half of the company's GMV coming from customers using multiple verticals on the platform. As Marie-Anne Popp highlighted, the leadership team's focus on lower costs and growth has been instrumental in driving these improvements.

Segment Performance

The company's Asia segment showed significant improvement, with GMV growth accelerating to 11% in constant currency and on a like-for-like basis. The rollout of own delivery service in South Korea has led to a significant increase in order frequency and customer retention. The company is confident in its investments in Korea, including own delivery and subscription, which will drive long-term value.

Valuation Metrics

With a P/S Ratio of 1.16 and an EV/EBITDA of -66.36, the market is pricing in significant growth expectations for Delivery Hero. The company's ROE is -57.41%, and the ROIC is -6.3%, indicating that the company is still in a growth phase and investing heavily. The Net Debt / EBITDA ratio is -24.21, indicating a healthy liquidity position.

Guidance and Outlook

The company is adjusting its outlook for 2025, with GMV growth expected to reach the upper end of the 8% to 10% range, and revenue growth in constant currency expected to be 22% to 24%. However, adjusted EBITDA has been impacted by FX developments, and the company now expects a more pronounced FX headwind in H2. The company is revising its guidance to a range of EUR 900 million to EUR 940 million.

3. NewsRoom

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Delivery Hero Faces Investor Revolt: Billion?Euro Shake-Up May Be Next

Nov -28

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Delivery Hero Investors Said to Push for Sale, Divestments

Nov -28

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China EV Profit Woes Fuel Market Anxiety Over Challenging 2026

Nov -28

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3 European Stocks That May Be Priced Below Their Estimated Value

Nov -26

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CVC Capital Partners And 2 Other European Stocks That May Be Trading Below Their Estimated Value

Nov -25

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3 European Stocks That May Be Trading Below Intrinsic Value By Up To 26.7%

Nov -24

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Global's November 2025 Stock Picks That May Be Trading Below Estimated Value

Nov -24

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Prosegur Cash And 2 European Stocks That Could Be Trading Below Their Estimated Value

Nov -24

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.54%)

6. Segments

Commissions

Expected Growth: 8%

Commissions from Delivery Hero SE grew 8% driven by increasing online food ordering trends, expansion into new markets, and strategic partnerships with restaurants and food establishments. Additionally, investments in technology and marketing campaigns contributed to the growth, as well as the rise of the gig economy and changing consumer behavior.

Delivery Fees

Expected Growth: 10%

Delivery Hero SE's 10% growth in delivery fees is driven by increasing demand for online food ordering, expansion into new markets, and strategic partnerships with restaurants. Additionally, investments in technology and logistics have improved operational efficiency, allowing for higher order volumes and increased revenue. Furthermore, the company's focus on customer retention and loyalty programs has led to repeat business and higher average order values.

Dmarts

Expected Growth: 7%

Dmarts' 7% growth is driven by increasing demand for online grocery shopping, expansion into new markets, and strategic partnerships. Additionally, investments in logistics and technology have improved operational efficiency, enabling faster delivery and a wider product range. Furthermore, Dmarts' focus on customer convenience, competitive pricing, and loyalty programs have contributed to customer retention and acquisition.

Advertising and Listing

Expected Growth: 11%

Advertising and Listing growth of 11% in Delivery Hero SE is driven by increasing online food ordering trends, expansion into new markets, and strategic partnerships. Effective advertising campaigns, improved user experience, and enhanced listing features also contribute to the growth. Additionally, the company's focus on commission-based revenue models and data-driven marketing strategies have optimized customer acquisition costs, further fueling growth.

Vouchers

Expected Growth: 6%

The 6% growth in vouchers from Delivery Hero SE is driven by increasing demand for online food delivery, expansion into new markets, and strategic partnerships. Additionally, investments in technology and marketing, as well as a growing customer base, contribute to the growth. Furthermore, the rise of the gig economy and changing consumer behavior also play a role in this growth.

Payment Charges

Expected Growth: 9%

Payment Charges from Delivery Hero SE's 9% growth is driven by increasing online food delivery adoption, expansion into new markets, and rising commission rates. Additionally, the company's investments in digital payment infrastructure and strategic partnerships with restaurants and payment providers have contributed to the growth.

Other

Expected Growth: 8%

Delivery Hero SE's 8% growth is driven by increasing online food ordering penetration, expansion into new markets, and rising demand for convenience. Additionally, investments in technology and logistics have improved operational efficiency, enabling the company to scale rapidly. Strong brand recognition and strategic partnerships have also contributed to the company's growth momentum.

Service

Expected Growth: 12%

Delivery Hero SE's 12% growth is driven by increasing demand for online food delivery, expansion into new markets, strategic partnerships, and investments in technology and logistics. Additionally, the company's focus on customer convenience, variety of restaurants, and competitive pricing contribute to its growth momentum.

Subscription

Expected Growth: 8%

Strong demand for online food delivery, increasing market share in Latin America and Middle East, successful integration of acquired businesses, and investments in technology and logistics infrastructure driving operational efficiency and customer satisfaction.

7. Detailed Products

Foodpanda

Online food delivery platform that connects customers with local restaurants and food establishments

Talabat

Online food delivery platform that connects customers with local restaurants and food establishments in the Middle East

Rappi

On-demand delivery platform that connects customers with local restaurants, stores, and services

PedidosYa

Online food delivery platform that connects customers with local restaurants and food establishments in Latin America

Hungerstation

Online food delivery platform that connects customers with local restaurants and food establishments in Saudi Arabia

Domicilios

Online food delivery platform that connects customers with local restaurants and food establishments in Colombia

Foodora

Online food delivery platform that connects customers with local restaurants and food establishments in Europe and Asia

8. Delivery Hero SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Delivery Hero SE is medium due to the presence of alternative food delivery platforms and restaurants' own delivery services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power and the high number of customers using the platform.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the dependence on restaurants and food establishments for supply, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry and the attractiveness of the food delivery market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, including Uber Eats, Just Eat, and Foodpanda, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 76.29%
Debt Cost 6.10%
Equity Weight 23.71%
Equity Cost 9.68%
WACC 6.95%
Leverage 321.73%

11. Quality Control: Delivery Hero SE 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
Deliveroo

A-Score: 5.3/10

Value: 4.6

Growth: 8.1

Quality: 4.6

Yield: 0.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Just Eat Takeaway

A-Score: 4.3/10

Value: 4.4

Growth: 5.7

Quality: 2.7

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
JD Sports Fashion

A-Score: 4.1/10

Value: 8.1

Growth: 7.0

Quality: 5.0

Yield: 0.6

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Zalando

A-Score: 3.7/10

Value: 5.2

Growth: 6.4

Quality: 4.8

Yield: 0.0

Momentum: 3.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Global-e Online

A-Score: 3.2/10

Value: 2.6

Growth: 7.2

Quality: 4.6

Yield: 0.0

Momentum: 3.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Delivery Hero

A-Score: 2.8/10

Value: 6.1

Growth: 7.3

Quality: 1.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.98$

Current Price

19.98$

Potential

-0.00%

Expected Cash-Flows