GICS Sector : Financial Services
flatexDEGIRO AG provides online brokerage and IT solutions in the areas of finance and financial technology services in Europe.It operates through Financial Services (FIN) and Technologies (TECH) segments.The FIN segment offers business-to-consumer online brokerage, business-to-business white-label banking, electronic securities settlement, custody account management, and other banking products and services.
FlatexDEGIRO reported a stellar financial performance for 2024, with revenues surging 23% year-over-year to a record €480 million. The company’s net income soared 55% to €112 million, significantly exceeding initial guidance. This robust earnings growth was driven by strong customer acquisition, increased trading activity, and a favorable product mix. The company’s customer base expanded by 24%, reaching over 3 million, with active customers hitting a record high of nearly 1 million in the fourth quarter. Commission income rose 20% year-over-year, supported by higher transactions and strong U.S. trading volumes, while interest income grew 32% to €180 million, benefiting from significant net cash inflows and a growing margin loan book.
Publication Date: Mar -01
The company is also making progress in reducing operational complexity and improving cost structures. Personnel expenses rose 19% due to salary increases and hiring for regulatory compliance, but management highlighted plans to reduce headcount and administrative costs in 2025. A €5 million provision for headcount reduction in 2024 reflects this commitment to cost discipline.
From a valuation perspective, FlatexDEGIRO trades at a price-to-earnings (P/E) ratio of 18.62 and a price-to-tangible book value (P/TBV) of 2.88, reflecting its strong growth prospects and solid financial position. The company’s dividend yield of 0.21% and free cash flow yield of 4.03% also highlight its attractiveness to income-focused investors. With a net debt-to-EBITDA ratio of -12.0, the company maintains a healthy balance sheet, providing flexibility for future growth initiatives and shareholder returns.
With 60% ownership, flatexDEGIRO AG (ETR:FTK) boasts of strong institutional backing
Apr -04
flatexDEGIRO Reports Full Year 2024 Earnings
Mar -04
flatexDEGIRO Reaches Three Million Customers
Nov -13
Analyst Estimates: Here's What Brokers Think Of flatexDEGIRO AG (ETR:FTK) After Its Third-Quarter Report
Oct -26
Mandate of BaFin’s special commissioner at flatexDEGIRO terminated
Oct -18
flatexDEGIRO First Half 2024 Earnings: EPS: €0.55 (vs €0.18 in 1H 2023)
Sep -05
flatexDEGIRO appoints Oliver Behrens, long-standing CEO of Morgan Stanley Europe SE, as Chief Executive Officer
Aug -28
flatexDEGIRO First Quarter 2024 Earnings: EPS: €0.27 (vs €0.091 in 1Q 2023)
Apr -29
Flatex's 7% growth is driven by increasing online trading adoption, expansion into new European markets, and strategic partnerships. The company's scalable business model, low fees, and user-friendly platform have attracted a growing customer base. Additionally, the acquisition of DEGIRO has enhanced Flatex's market position, contributing to its growth momentum.
DEGIRO's 9% growth is driven by increasing demand for online brokerage services, expansion into new European markets, and strategic partnerships. The platform's low fees, user-friendly interface, and wide range of investment products also contribute to its growth. Additionally, the rise of retail investing and the shift towards digitalization in the financial industry further support DEGIRO's growth momentum.
Consolidation with flatexDEGIRO AG driven by increasing online trading adoption, expansion into new European markets, and strategic partnerships. Cost synergies from integration, improved operational efficiency, and enhanced product offerings also contribute to the 8% growth. Additionally, the rise of retail investors and growing demand for digital investment platforms further support this growth trajectory.
FlatexDEGIRO AG offers trading services for various financial instruments such as stocks, ETFs, options, futures, and forex.
The company provides custody services for securities, ensuring the safekeeping and administration of clients' assets.
FlatexDEGIRO AG offers margin lending services, allowing clients to borrow money to invest in financial instruments.
The company offers savings plans, enabling clients to invest small amounts regularly in various financial instruments.
FlatexDEGIRO AG provides robo-advisory services, offering automated investment portfolios tailored to individual risk profiles.
The company allows clients to trade cryptocurrencies such as Bitcoin and Ethereum.
The threat of substitutes for flatexDEGIRO AG is moderate, as there are alternative investment platforms and brokerages available to customers.
The bargaining power of customers is low, as flatexDEGIRO AG has a large customer base and offers competitive pricing and services.
The bargaining power of suppliers is low, as flatexDEGIRO AG has a diversified supplier base and is not heavily dependent on any single supplier.
The threat of new entrants is high, as the online brokerage industry is relatively easy to enter and there are low barriers to entry.
The intensity of rivalry is high, as the online brokerage industry is highly competitive and there are many established players competing for market share.
| Value | |
|---|---|
| Debt Weight | 14.34% |
| Debt Cost | 3.95% |
| Equity Weight | 85.66% |
| Equity Cost | 8.96% |
| WACC | 8.24% |
| Leverage | 16.74% |
Value: 5.5
Growth: 5.8
Quality: 5.2
Yield: 7.5
Momentum: 5.5
Volatility: 10.0
1-Year Total Return ->
Value: 4.9
Growth: 7.4
Quality: 8.5
Yield: 0.0
Momentum: 9.5
Volatility: 3.7
1-Year Total Return ->
Value: 8.0
Growth: 5.8
Quality: 8.2
Yield: 8.1
Momentum: 1.0
Volatility: 2.3
1-Year Total Return ->
Value: 2.4
Growth: 9.4
Quality: 8.5
Yield: 0.6
Momentum: 9.5
Volatility: 2.7
1-Year Total Return ->
Value: 4.8
Growth: 7.1
Quality: 7.6
Yield: 5.6
Momentum: 2.5
Volatility: 5.3
1-Year Total Return ->
Value: 7.8
Growth: 1.9
Quality: 3.5
Yield: 4.4
Momentum: 8.5
Volatility: 0.3
1-Year Total Return ->