Original-Research: Westwing Group SE (von NuWays AG): BUY
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Original-Research: Westwing Group SE - from NuWays AG
19.01.2026 / 09:00 CET/CEST
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Classification of NuWays AG to Westwing Group SE
Company Name: Westwing Group SE
ISIN: DE000A2N4H07
Reason for the research: Update
Recommendation: BUY
Target price: EUR 23.5
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
Blowout Q4 prelims as value creation plan bears fruit; PT UP
Westwing raised its FY25 guidance implying blowout Q4 figures particularly
on adj. EBITDA and cash generation as the value creation plan is
increasingly bearing fruit. In detail:
GMV in Q4 grew by 9% yoy to EUR 163m (eNuW old: EUR 158m) driven by a
particularly strong performance during the Black Week sales event and at
year-end; FY25 GMV grew by 2% yoy to EUR 507m. Accordingly, sales in the
fourth quarter increased by 6.7% yoy to EUR 143m with FY25 sales coming in at
EUR 449m (eNuW old: EUR 446m). In sum, this should largely be the result of
management's transformation efforts, incl. a stronger premium brand
positioning, adjusted product assortment and the ongoing European expansion
(9M international sales were up 1.5% yoy vs. slightly declining DACH sales).
Margins, the true star of the show. In Q4, the group's adj. EBITDA margin
stood at a whopping 15% (+7.3 pp yoy), clearly beating our old 9.6%
estimate. With this, adj. EBITDA jumped by 110% yoy to EUR 21.6m (eNuW old: EUR
13.5m). FY25 adj. EBITDA to now come in at EUR 43m (eNuW old: EUR 34.8m). The
reasons are simple (1) ongoing tight cost control, (2) a rising Westwing
Collection share, (3) operating leverage and (4) fast order processing.
FY25 guidance raised. Following the particularly strong Q4, management now
expects around EUR 449m sales (old: EUR 425-455m) and adj. EBITDA of EUR 42-45m
(old: EUR 25-35m).
Superb cash generation. In FY25, WEW generated EUR 25m of cash, notably above
our old estimate of EUR 10m thanks to the better than anticipated operational
performance, fast order processing (i.e. better inventory turn) and high
cash conversion (lower receivables, higher payables). With this, net cash at
the end of FY25 increased to EUR 94m (eNuW old: EUR 79m).
FY26e to remain on a growth track // European expansion ongoing. WEW should
be able to continue growing in FY26, largely carried by the International
segment. Mind you, in FY25 WEW entered ten additional European markets with
early signs of success already visible with Q3 figures. As WEW continues to
build scale across Europe, the next strategic leap should be the UK, a
high-potential market that could significantly expand its addressable market
reach and validate the brand's ability to replicate success beyond the EU.
Valuation remains undemanding. Shares are trading at a mere 4.2x EV/adj.
EBITDA FY26e (~37% of the market cap is covered by net cash) while
management' value creation plan is being delivered like clockwork. Mind you,
WEW is back on a growth path with gradually improving margins as operating
leverage is kicking in and strong cash generation. This clearly underpins
our view of WEW being a high-reward investment case at a still attractive
entry point.
We reiterate our BUY rating and keep WEW in our AlphaList with a slightly
increased EUR 23.50 PT (old: EUR 22.00), based on DCF. - change of analyst -
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=37767ab070ee6ac0659d923baccc9db1
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
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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