| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 41.30 | 99 |
| Graham Formula | 1.00 | -95 |
Wüstenrot & Württembergische AG (WUW) is a leading German financial services provider specializing in insurance and housing finance solutions. Headquartered in Stuttgart, the company operates through four key segments: Housing, Life and Health Insurance, Property/Casualty Insurance, and All Other (including asset management and property development). With a history dating back to 1828, WUW serves retail and corporate customers in Germany, the Czech Republic, and internationally. The company offers a diversified product portfolio, including home loan savings contracts, mortgage loans, life and health insurance, and property/casualty insurance. WUW distributes its products through a multi-channel approach, leveraging brokers, partners, mobile sales forces, and digital platforms. As a mid-cap player in the European insurance sector, WUW combines traditional financial stability with modern distribution strategies, positioning itself as a regional powerhouse in Germany's competitive insurance market.
Wüstenrot & Württembergische presents a mixed investment case. The company benefits from its diversified business model across insurance and housing finance, providing revenue stability. With a market cap of €1.94 billion and €6.15 billion in revenue, it maintains a solid position in the German market. The stock's beta of 0.797 suggests lower volatility than the broader market, potentially appealing to conservative investors. However, challenges include thin net margins (€34 million net income on €6.15 billion revenue), significant debt (€5.09 billion), and modest EPS (€0.36). The dividend yield appears sustainable at €0.6373 per share. Investors should weigh the company's established market position against the competitive pressures in Germany's crowded insurance sector and the impact of low interest rates on its banking and insurance operations.
Wüstenrot & Württembergische competes in Germany's highly fragmented insurance and financial services market. Its competitive advantage lies in its dual specialization in insurance and housing finance, creating cross-selling opportunities uncommon among pure-play insurers. The company's 195-year history provides brand recognition and trust in its core German market. WUW's multi-channel distribution strategy, combining traditional broker networks with digital platforms, offers flexibility in customer acquisition. However, the company faces scale disadvantages compared to global insurers and lacks the digital-first approach of newer fintech competitors. In property/casualty insurance, WUW competes on service quality rather than price leadership. The housing finance segment benefits from specialized knowledge of the German real estate market but contends with intense competition from Sparkassen and larger commercial banks. WUW's regional focus limits geographic diversification but allows for deep market penetration in its home territories. The company's moderate size enables agility but may constrain investment in technology and innovation compared to larger rivals.