4J·

Sixt share now a buy?

Hi,

What do you think of the $SIX2 (+2,12 %) (Sixt) share?

I think it's potentially exciting at the moment -- what's your take?

2 Commentaires

I keep my distance. Not an investment case for me. I last explained this in response to another question here a few days ago.

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Smudo@Smudeo

Within three years, Sixt has lost a good half of its stock market value.
Since it was founded in Pullach near Munich in 1912, the car rental company Sixt has developed into an SDAX-listed group with four different business segments: In addition to classic car rental, car sharing, driving services and a subscription model were added in 2020. A good 80% of revenue is generated by the classic car rental business Sixt Rent and flexible mobility solutions such as Sixt Share and Sixt Ride. Sixt focuses primarily on the European and North American markets. Sixt generates around 30% of its revenue in Germany and North America respectively, with the remainder in Europe (ex Germany).

In 2021, Erich Sixt finally heralded a generational change and handed over the sceptre to his sons Alexander and Konstantin Sixt. The patriarch himself moved to the Supervisory Board, which drew criticism from investors. With a new strategy, the two co-CEOs were to lead the car rental company out of the coronavirus slump and electrify the fleet. After revenue doubled between 2009 and 2019, sales slumped by almost 40% in 2020 due to the lockdowns. However, records have followed since then thanks to recovering demand. The preliminary figures from Thursday (27.2.) show the third record turnover in a row with an increase of 10.5% above the 4 billion euro mark. However, the bottom line is burdened by high costs: despite record EBITDA of EUR 1.46 billion, profit fell by a quarter to EUR 244 million.
The original plan was to electrify 70 to 90% of the fleet by 2030. However, lower demand for e-cars and higher fixed costs have recently weighed on profitability. We see it as positive that the management is keeping the target flexible in view of the tense market situation, monitoring the market and still keeping an eye on the future topic of e-mobility. The problem of increased depreciation due to sharply falling residual vehicle values, especially in North America (burden 2024: triple-digit million euro amount) should also be under control.
In addition, the fleet will be kept at a tight level, which will reduce fixed costs. Flexible leasing and purchasing models as well as partnerships with car manufacturers such as BYD contribute to this, as does the increased use of AI and data analysis via the Sixt One platform. With its expansion in the USA, Sixt is also active in a high-growth market, while Germany is somewhat saturated

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