| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
home24 SE is a leading European and Brazilian online retailer specializing in furniture and home furnishings. Headquartered in Berlin, Germany, the company operates under multiple brand names, including Studio Copenhagen, ARS NATURA, and home24, offering a diverse range of products such as living, dining, bedroom, and garden furniture, textiles, and lighting accessories. With a strong digital presence complemented by 18 showrooms across Germany, Austria, Switzerland, and Brazil, home24 SE combines e-commerce efficiency with physical retail touchpoints to enhance customer experience. The company serves the growing demand for stylish, affordable home goods in the competitive consumer cyclical sector. Despite challenges in profitability, home24 SE maintains a significant market position in Europe's online furniture retail space, leveraging its omnichannel strategy and brand portfolio to attract a broad customer base.
home24 SE presents a mixed investment profile. The company operates in the high-growth online furniture retail market, benefiting from the increasing shift toward e-commerce in home furnishings. However, its financials reveal persistent challenges, including a net loss of €49.7 million in FY 2022 and negative diluted EPS of -€1.61. While revenue stands at a robust €601 million, profitability remains elusive, and the company's high beta (1.85) indicates significant volatility relative to the market. Positive operating cash flow of €24 million suggests some operational efficiency, but high total debt (€186.9 million) raises concerns about financial stability. Investors may find potential in home24's market position and omnichannel strategy, but risks related to profitability and leverage warrant caution.
home24 SE competes in the crowded online furniture retail market, where differentiation through brand diversity, pricing, and customer experience is critical. The company's strength lies in its omnichannel approach, combining e-commerce with physical showrooms to cater to varied consumer preferences. Its multi-brand strategy allows it to target different market segments, from premium (Studio Copenhagen) to budget-conscious shoppers (home24). However, the European and Brazilian markets are highly competitive, with rivals like Wayfair and IKEA dominating scale and brand recognition. home24's smaller scale limits its bargaining power with suppliers, impacting margins. Additionally, the capital-intensive nature of furniture logistics (e.g., high shipping costs and returns) pressures profitability. While home24 has carved a niche in mid-range furniture, it must improve operational efficiency and scale to compete effectively against larger, more established players. Its ability to sustain growth in Brazil—a market with logistical complexities—also remains a key challenge.