Original-Research: Westwing Group AG (von NuWays AG): BUY

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 € 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. € 151m. Having a healthy balance sheet with a current net cash position of € 69m (or € 3.30 per share or >45% of the current share price), an investor acquires the entire operating business for only € 3.90 per share. With FCF LTM of € 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 € 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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-------------------übermittelt durch die EQS Group AG.-------------------

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.