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Stock Analysis & ValuationSleepz AG (BTBB.DE)

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0.14
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Methodn/a
Graham Formula5.984051

Strategic Investment Analysis

Company Overview

Sleepz AG is a German e-commerce company specializing in sleep and home living products. Operating under multiple online shop brands such as perfekt-schlafen.de, markenschlaf.de, and bettenriese.de, the company offers a wide range of sleep-related products, including mattresses, beds, bedding, and accessories. Sleepz AG also develops its own mattresses under the Grafenfels brand, positioning itself as a vertically integrated player in the online sleep solutions market. Headquartered in Berlin, the company serves the German market with a focus on convenience, quality, and competitive pricing. Formerly known as bmp Holding AG, Sleepz AG rebranded in 2017 to better reflect its core business. Despite its niche focus, the company competes in the broader consumer cyclical sector, where e-commerce penetration continues to grow. With a market capitalization of approximately €2.69 million, Sleepz AG remains a small but notable player in Germany's specialty retail landscape.

Investment Summary

Sleepz AG presents a high-risk investment opportunity due to its financial struggles, including a net loss of €4.13 million in FY 2017 and negative operating cash flow of €2.85 million. The company's small market cap (€2.69M) and lack of profitability raise concerns about sustainability, though its low beta (0.74) suggests lower volatility relative to the market. The e-commerce sleep products segment is competitive, and Sleepz AG's multi-brand strategy may dilute marketing efficiency. However, its vertical integration (Grafenfels brand) and diversified online presence could offer growth potential if operational efficiencies improve. Investors should closely monitor cash burn and debt levels (€941.6K total debt vs. €500.2K cash). No dividends are paid, making this a pure capital appreciation play.

Competitive Analysis

Sleepz AG operates in a highly competitive e-commerce space dominated by larger players with stronger brand recognition and economies of scale. Its multi-brand strategy (perfekt-schlafen.de, bettenriese.de, etc.) allows it to target different customer segments but may lead to fragmented marketing spend. The company’s vertical integration through its Grafenfels mattress brand provides some differentiation, though it lacks the scale of dedicated mattress manufacturers. Sleepz AG’s focus on sleep products gives it niche expertise, but it competes with generalist e-commerce giants that offer similar products alongside broader home goods. The German market is crowded with both online and offline mattress retailers, limiting pricing power. Sleepz AG’s financial weakness (negative EPS, declining revenue) further hampers its ability to invest in technology or customer acquisition compared to well-funded rivals. Its competitive advantage lies in local market knowledge and a curated product selection, but without significant capital infusion, scaling will remain challenging.

Major Competitors

  • Emma Sleep GmbH (EMN.DE): Emma Sleep is a direct-to-consumer mattress brand with strong digital marketing and rapid European expansion. It outperforms Sleepz AG in brand recognition and scalability but lacks Sleepz’s multi-brand approach. Emma’s vertically integrated model and higher growth trajectory make it a formidable competitor.
  • Bettenwelt GmbH (BETT.DE): Bettenwelt operates both online and offline stores, giving it an omnichannel edge over Sleepz AG’s pure e-commerce model. It has a broader product range but lacks Sleepz’s proprietary mattress brand (Grafenfels). Bettenwelt’s larger scale provides better supplier terms.
  • Amazon (AMZN): Amazon’s German marketplace offers extensive sleep products with superior logistics and customer reach. While it lacks specialized sleep expertise, its Prime ecosystem and competitive pricing pressure niche players like Sleepz AG. Amazon’s scale is unmatched, but Sleepz can compete on curated selection and local service.
  • Wayfair Inc (WAYFA): Wayfair’s European presence (via Wayfair.de) competes directly with Sleepz AG in home and sleep products. Wayfair has superior technology and inventory breadth but lacks Sleepz’s focus on sleep-specific expertise. Its global supply chain allows lower prices, though Sleepz may appeal to local buyers.
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