Original-Research: Westwing Group AG (von NuWays AG): BUY
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Original-Research: Westwing Group AG - von NuWays AG
Einstufung von NuWays AG zu Westwing Group AG
Unternehmen: Westwing Group AG
ISIN: DE000A2N4H07
Anlass der Studie: 5 Pager
Empfehlung: BUY
seit: 23.01.2024
Kursziel: 19.00
Kursziel auf Sicht von: 12 Monaten
Letzte Ratingänderung:
Analyst: Mark-Hendrik Schüssler
Storytelling-based value and growth play for 2024
With its storytelling-based retail approach and inspiration-driven revenue
generation, Westwing is a unique play on the growing online penetration in
the home and living segment. The latter still stands at 25% for fashion or >35% for electronics. Its focus on
curated home furnishings along with strong app engagement in 11 European
countries helped the company generate EUR 431m in FY'22 revenues and reach
1.3m, mostly female customers with an impressive >80% retention rate, and a
superb mobile share rate of 80%.
Westwing's strong gross margins of c. 50% are carried by a high share of
private labels (48% in Q3'23). As sales look set to grow at a 8.3% CAGR
23e-27e, scalability should allow for profitability improvement especially
in G&A (c. 21% of sales vs 7-10% industry average) such that the EBIT
margin is seen to reach break-even in 2024e.
Notably, after several quarters of decline in the number of active
customers and order frequency normalization following the pandemic boom,
Westwing was able to return to growth both in active customers and GMV per
customer in Q3 2023, indicating that the company seems to have passed the
trough. Hence, structural drivers are back to the fore and the company is
on track to continue top and bottom line growth into 2024 thanks to
fruitful efforts to improve customer experience, product offering and a
growing share of the higher-margin private label.
Westwing's market cap stands at only c. EUR 151m. Having a healthy balance
sheet with a current net cash position of EUR 69m (or EUR 3.30 per share or
>45% of the current share price), an investor acquires the entire operating
business for only EUR 3.90 per share. With FCF LTM of EUR 23.8m and trading at
only c. 0.2x EV/Sales FY23e (~60% discount to e-commerce peers), Westwing
provides both a strong downside protection and a bargain opportunity to
disproportionately profit from an eventual recovery of the Home & Living
market and possibly a less hawkish monetary policy.
Regarding the stock as a compelling mix of growth and value, we remain our
BUY rating with an unchanged PT EUR 19.00, based on DCF.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28725.pdf
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.
Kontakt für Rückfragen
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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