Sixt Vz

We decided to go with the car rental company Sixt.

There were recently some unscheduled write-downs here. We think these are one-off effects and have therefore seen them as an exciting buying opportunity.

Sixt is a fairly reliable dividend payer and at the same time the family-run company is being continuously expanded. Sometimes with very cheeky but successful advertising campaigns. Subscription models in particular could ensure further growth in the future. Sixt manages to operate more profitably than traditional car manufacturers.

$N/A (+0,27%) +7%

$SIX2 (+0,72%) +10% after target price increase

FRANKFURT (dpa-AFX) - Deutsche Bank's research division expects positive momentum in sales and earnings at car rental company Sixt. In addition, the company manages residual value risks very well, praised analyst Michael Kuhn and upgraded the share from "Hold" to "Buy" in a study published on Thursday. He left the price target unchanged at EUR 120, which would still mean a plus of 28 percent in view of the approximately eight percent jump in the share price on that day.

"The main reasons for our downgrade of the Sixt share in July 2023 were the negative expected earnings momentum as well as the equally negative development in revenue per day (RPD) and used car prices," explained Kuhn. Now, however, given the midpoint of Sixt's forecast range for pre-tax earnings in the first quarter and the full year, a year-on-year increase is expected for the remainder of the year.

CAR RENTALS $SIX2 (+0,72%)

Sixt posts record sales

FY 2023 should end better than expected for car rental company Sixt.

At the beginning of the month, the Pullach-based company already specified its guidance for record revenue of EUR 3.6 billion (previously: "significant increase") and EBT of EUR 460 to 500 million (previously: EUR 430 to 550 million). In the previous year, the Group achieved around EUR 3.1 billion or EUR 386 million. The figures were well received on the stock market and the MDAX share (EUR 91.95; DE0007231326) has since risen by 8%.

After benefiting from a shortage of vehicles on the market in the previous year, Sixt has expanded its own fleet to a record 168,300 vehicles (+23%). This made it possible to better serve the high demand in the main vacation season. Although fleet costs, depreciation and interest expenses are rising due to the expansion of the vehicle fleet and rental prices are falling slightly, Sixt will be able to compensate for this thanks to generally high demand and impressive US growth (Q3: +13% revenue). The expansion in the USA is being accelerated by partnerships with the Los Angeles Lakers and the Chicago Bulls, among others.

Follow-up purchase and position expanded.

Follow-up purchase due to special dividend 🤑

The shareholder tariff of Sixt

Dear friends of non-cash dividends,

for more than 7 years I have been a very satisfied customer at the well known car rental company Sixt. As a result, I have been a (preferred) shareholder at Sixt for a good 5 years - a big argument for me was the shareholder rate that Sixt offers from the first share.

How much money I have saved so far I don't know, but probably significantly more than I have received in dividends over the last few years.

What is the Sixt shareholder rate?

I have already answered the question above:

To get this rate, you have to own at least one Sixt share, whether common or preferred.

In addition, you need a customer account with your own customer number, on which the tariff is deposited.

Finally, all you have to do is send a copy of the securities statement to the customer service department by e-mail (direct messaging via social media platforms is also possible), stating the customer number.

Thereupon, your booking profile will be set to "SHAREHOLDER Sixt AG" and you will receive up to 20% discount on your future bookings.

Sixt is not only cheeky in advertising

Sixt is known for its funny and sometimes very cheeky advertising, an example see here: Sixt kürt Claus Weselsky zum Mitarbeiter des Monats

But Sixt can also be cheeky in other ways.

To say it right away: Of course, the discount is, as always, the "up to" is to be considered. So it is not guaranteed that you always get 20% discount, I used to be mostly so between 10% and 15%.

I also think that if you have a special rate and you get it for free because you are a shareholder, you don't have the right to complain if you don't get a discount.

But: What I find incredibly brazen is what you see in the screenshot below.

The top row is the search when unannounced at the Sixt station in my city looking for rental cars over Christmas.

The bottom row shows the exact same search, just logged in as a shareholder.

These offers are exemplary, the same applies to all 28 search results.

As I said not giving a discount is fine in my opinion, but pretending to get a discount by showing a fictitious higher price crossed out is different cheeky. 😂😂😂

At the current level, a nice combination of strong dividend and some upside potential

For the share bonus

No serious interest in the share, but the advantages of owning one speak for themselves.

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