Stock Analysis & Valuation MyHammer Holding AG (MYRK.DE)

• Previous Close: €23.40
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	4.05	-83
Graham Formula	11.40	-51

Strategic Investment Analysis

Company Overview

MyHammer Holding AG, a subsidiary of ANGI Homeservices Inc., operates a leading online marketplace connecting tradespeople and service providers with customers across Europe. Founded in 1996 and headquartered in Berlin, Germany, MyHammer facilitates home improvement and repair services through its digital platform, streamlining the process for both service providers and homeowners. The company, formerly known as Abacho AG, rebranded in 2010 to align with its core business model. Operating in the competitive online home services sector, MyHammer leverages technology to enhance service discovery, booking, and customer reviews. Despite being classified under 'Shell Companies' in the Financial Services sector, its operational focus remains on digital marketplace solutions for tradespeople. With a revenue of €20.1 million in 2020 and a net income of €3.55 million, MyHammer demonstrates profitability in a niche yet growing market segment.

Investment Summary

MyHammer Holding AG presents a niche investment opportunity within the digital home services marketplace. The company's profitability (€3.55 million net income in 2020) and strong cash position (€9.04 million cash and equivalents) suggest financial stability. However, its classification as a 'Shell Company' in the Financial Services sector may misrepresent its actual business model, potentially creating investor confusion. The negative beta (-0.032) indicates low correlation with broader market movements, which could appeal to risk-averse investors. Risks include reliance on the European market, competition from larger global platforms, and dependence on its parent company, ANGI Homeservices. The lack of dividends may deter income-focused investors, but growth potential in the digital tradesperson marketplace could offer long-term value.

Competitive Analysis

MyHammer Holding AG operates in a competitive digital marketplace for home services, competing against both localized European platforms and global giants. Its primary competitive advantage lies in its established presence in the German and broader European markets, offering localized services that cater to regional preferences and regulations. The platform's focus on tradespeople differentiates it from broader service marketplaces, providing a specialized niche. However, its scalability is limited compared to global competitors like ANGI Homeservices (its parent company) or Thumbtack, which benefit from larger user bases and brand recognition. MyHammer's financials indicate efficient operations, with a healthy net income margin (~17.6% in 2020), but its growth potential may be constrained by the dominance of larger players. The company's integration within ANGI Homeservices' ecosystem could provide synergies, but it also risks being overshadowed by its parent's broader offerings. Localized customer trust and a streamlined booking process are strengths, but the lack of significant technological differentiation or international expansion limits its competitive edge against well-funded rivals.

Major Competitors

• ANGI Homeservices Inc. (ANGI): ANGI Homeservices, the parent company of MyHammer, operates a larger global platform (including HomeAdvisor and Angie's List) with extensive resources and brand recognition. Its strengths include a vast service provider network and advanced matching algorithms. However, its focus on the U.S. market limits direct competition with MyHammer in Europe. ANGI's scale allows for better tech investments but may lack MyHammer's localized European expertise.
• Thumbtack (TT): Thumbtack is a U.S.-based competitor with a similar business model, offering a digital marketplace for home services. While not publicly traded, it poses a threat due to its strong venture backing and potential international expansion. Thumbtack's weakness lies in its limited European presence compared to MyHammer's localized platform. Its proprietary pricing tools are a strength but may not translate well to European markets.
• Houzz Inc. (HOUZZ): Houzz combines a home services marketplace with design inspiration, appealing to a broader audience than MyHammer. Its strengths include a large community of homeowners and integrated design tools. However, its focus on higher-end projects and U.S.-centric operations reduces direct overlap with MyHammer's tradesperson-focused European platform. Houzz's weakness is its lack of specialization in small-scale repair services.
• Checkatrade Ltd (CHECKATRADE): A UK-based competitor, Checkatrade offers a similar tradesperson marketplace but focuses heavily on vetting and verification. Its strength lies in strong brand trust in the UK, but it lacks MyHammer's broader European footprint. Checkatrade's subscription model for tradespeople differs from MyHammer's lead-generation approach, creating distinct competitive dynamics.