| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 35.02 | 697 |
| Intrinsic value (DCF) | 1.22 | -72 |
| Graham-Dodd Method | 0.61 | -86 |
| Graham Formula | 1.39 | -68 |
Ceconomy AG (CEC.DE) is a leading European consumer electronics retailer, operating under the well-known MediaMarkt and Saturn brands. Headquartered in Düsseldorf, Germany, the company runs approximately 850 MediaMarkt stores across 14 countries and 170 Saturn stores in three countries. Ceconomy also manages Flip4New, an online platform for selling used electronics, and offers professional installation and troubleshooting services under the Deutsche Technikberatung brand. The company serves key markets in Germany, Austria, Switzerland, Hungary, and other parts of Western, Southern, and Eastern Europe. As a major player in the Specialty Retail sector within the Consumer Cyclical industry, Ceconomy leverages its extensive store network and strong brand recognition to capture market share in the competitive electronics retail space. With a revenue of €22.4 billion in its latest fiscal year, Ceconomy remains a dominant force in European electronics retailing, though it faces challenges from e-commerce giants and shifting consumer preferences.
Ceconomy AG presents a mixed investment case. On the positive side, the company benefits from strong brand recognition (MediaMarkt/Saturn), a vast European retail footprint, and €1 billion in cash reserves. However, risks include a high beta (1.981) indicating volatility, thin net margins (€76M net income on €22.4B revenue), and significant debt (€2.63B). The company operates in a highly competitive space facing pressure from online retailers and showrooming effects. While operating cash flow remains healthy (€838M), the lack of dividends and modest EPS (€0.16 diluted) may limit appeal to income-focused investors. The investment thesis hinges on Ceconomy's ability to defend its brick-and-mortar dominance while growing its digital capabilities in an increasingly online retail environment.
Ceconomy's competitive position is defined by its strong European retail presence and dual-brand strategy (MediaMarkt/Saturn), which provides scale advantages in purchasing and marketing. The company's key competitive advantage lies in its physical store network that enables immediate product availability and in-person technical support services - a differentiation from pure-play online competitors. However, this brick-and-mortar focus also represents a vulnerability as consumer behavior shifts online. Ceconomy's Flip4New platform attempts to address the used electronics market but lacks the scale of dedicated refurbishment specialists. The company's financial position is adequate but not exceptional, with debt levels that could constrain flexibility in a downturn. Compared to global electronics retailers, Ceconomy's geographic focus on Europe provides regional expertise but limits diversification. The competitive landscape requires continuous investment in both physical stores and digital capabilities, putting pressure on margins. Ceconomy's future positioning will depend on its ability to integrate online and offline channels while maintaining cost discipline in a low-margin industry.