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Stock Analysis & ValuationScout24 SE (G24.DE)

Professional Stock Screener
Previous Close
84.05
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)73.96-12
Intrinsic value (DCF)39.31-53
Graham-Dodd Method0.11-100
Graham Formula41.77-50

Strategic Investment Analysis

Company Overview

Scout24 SE (G24.DE) is a leading digital real estate platform operator in Germany, best known for its flagship product ImmoScout24. Headquartered in Munich, the company provides a comprehensive suite of online real estate services, including property listings, lead generation tools, mortgage solutions, and CRM software for agents. Serving both residential and commercial markets, Scout24 connects property seekers with sellers and renters through its innovative digital ecosystem. With roots dating back to 1998, the company has evolved into a market leader in German real estate tech, offering specialized products like Vermietet.de for rental management and FLOWFACT for agent workflow optimization. As the German real estate market continues its digital transformation, Scout24 stands at the forefront with its established brand recognition, extensive property database, and value-added services that create a sticky ecosystem for all real estate market participants.

Investment Summary

Scout24 presents an attractive investment case as the dominant digital real estate platform in Germany's large property market, with demonstrated profitability (€162M net income in latest period) and strong cash generation (€257M operating cash flow). The company benefits from network effects in its marketplace model and recurring revenue streams from premium services. However, investors should monitor exposure to Germany's cooling property market and potential competition from international players. The stock's low beta (0.497) suggests relative stability, while the €1.20 dividend provides income appeal. Key growth drivers include product expansion (like mortgage services) and potential international expansion, though execution risks remain.

Competitive Analysis

Scout24 enjoys significant competitive advantages through its first-mover position and strong brand recognition in the German market. The company's ImmoScout24 platform benefits from powerful network effects - more listings attract more users, which in turn attracts more listings. This creates a virtuous cycle that competitors struggle to replicate. Scout24 has further fortified its position by expanding into adjacent services like mortgage lead generation and CRM tools, increasing switching costs for real estate professionals. The company's data advantage, accumulated over decades of operation, provides valuable market insights that enhance its value proposition. However, the competitive landscape is intensifying as international players like Zillow explore European expansion and proptech startups target niche segments. Scout24's focus on the German market provides deep local expertise but may limit growth potential compared to global competitors. The company's financial position (€55M cash vs €180M debt) appears manageable but could constrain aggressive expansion. Its B2B software offerings (like FLOWFACT) provide diversification but face competition from specialized SaaS providers.

Major Competitors

  • Immobel (IMMO.BR): Immobel is a Belgian real estate developer with operations across Europe, competing in property development rather than digital platforms. While not a direct competitor to Scout24's core marketplace business, Immobel represents traditional real estate services that are being disrupted by digital platforms. The company has strong local market knowledge but lacks Scout24's tech capabilities and scalability.
  • Zillow Group (Z): Zillow is the dominant U.S. digital real estate platform with advanced tech capabilities and a broader service offering including iBuying. While not currently active in Germany, Zillow represents a potential future threat if it expands internationally. Zillow's superior scale and tech resources could challenge Scout24, but it would face significant barriers establishing local market presence and trust.
  • Cewe Stiftung & Co. KGaA (CWK.DE): Cewe operates in photo services and has some overlapping real estate photography services with Scout24's platform needs. However, it's not a direct competitor in digital real estate marketplaces. Cewe's strength in visual content could complement rather than compete with Scout24's offerings.
  • LEG Immobilien SE (LEG.DE): LEG is a major German residential property company that might use Scout24's platforms for listings. While LEG competes in property ownership and management, it actually represents a customer segment for Scout24 rather than direct competition. LEG's large portfolio could give it bargaining power with platforms like Scout24.
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