Deutsche Boerse AG

Deutsche Boerse AG maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.96 and total liabilities of 285.8 billion EUR against total equity of 11.3 billion EUR. The balance sheet shows total assets of 297.2 billion EUR, largely driven by financial assets typical of clearing and trading operations. Liquidity is assessed as medium, supported by a current ratio of 1.01 and cash and equivalents of 1.8 billion EUR. Operating cash flow stands at 2.8 billion EUR, while free cash flow is 1.5 billion EUR after capital expenditures of 380 million EUR. The net cash position is negative after subtracting total debt, indicating reliance on debt financing for its asset base.

Profitability metrics demonstrate strong returns on equity, with an ROE of 18.16%, reflecting efficient use of shareholder capital despite the high leverage. Return on assets is 0.69%, which is consistent with asset-heavy financial infrastructure businesses where assets are primarily financial instruments rather than operational fixed assets. Operating income of 3.0 billion EUR on revenue of 7.4 billion EUR yields a robust operating margin, while net income reaches 2.0 billion EUR. The gross profit of 6.0 billion EUR indicates high-margin core activities, likely driven by proprietary trading platforms and data services.

Revenue concentration is not explicitly detailed in segment or geographic breakdowns in the provided data, but the company’s activity is centered on application software and financial market services. The classification as Application Software within the Software industry suggests a technology-driven revenue model, although the sector classification classification as Capital Markets highlights the financial nature of its operations. The lack of specific segment data limits detailed analysis of revenue mix, but the high gross margin implies a dominant position in high-value-added services.

Growth trajectory cannot be fully assessed due to the absence of historical period data in the input. However, the current revenue of 7.4 billion EUR and net income of 2.0 billion EUR provide a baseline for evaluating future performance. The company’s ability to maintain or grow these figures will depend on market activity, regulatory changes, and technological innovation in trading and clearing services.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting negative net cash after debt subtraction. The high debt-to-equity ratio of 1.96 exposes the company to interest rate fluctuations and refinancing risks. The current ratio of 1.01 suggests tight short-term liquidity, requiring careful cash flow management. The absence of significant dilution risk is positive for existing shareholders, as shares outstanding remain stable at 180.1 million.

Recent events include analyst estimates with a mean price target of 290.57 EUR and a median of 300.00 EUR, reflecting a positive outlook with a mean recommendation of 1.85. Strong-buy and buy counts total 16, compared to 4 holds, indicating broad analyst confidence. Competitor context includes Microsoft, Salesforce, and ServiceNow, though these are not direct peers in the capital markets infrastructure space, suggesting a broader technology sector comparison.

Revenue grew at a 13.6% CAGR from 2022 to 2026, demonstrating strong top-line expansion over the four-year period.

Free cash flow increased to EUR 1.48 billion in 2026, supporting robust liquidity for shareholder returns or reinvestment.

Debt-to-equity ratio of 1.96 places the company in the bottom quartile of the software cohort, signaling high leverage risk.

The company carries a high credit risk flag, suggesting potential vulnerabilities in its debt servicing or financial stability.

Long-term debt increased to EUR 23.8 billion in 2024, reflecting a growing liability burden despite revenue growth.

Return on assets of 0.7% is extremely low, indicating inefficient use of total assets to generate net income.

Free cash flow growth slowed to just 1.1% year-over-year in 2026, suggesting diminishing momentum in cash generation.

Revenue €2.03B, +8,4% YoY; Operating income +11,5% YoY.

• ▍Revenue €2.03B, +8,4% YoY
• ▍Operating income +11,5% YoY
• ▍Net income +11,4% YoY
• ▍Net margin 28.8%

Revenue €1.94B, +4,3% YoY; Operating income −0,1% YoY.

• ▍Revenue €1.94B, +4,3% YoY
• ▍Operating income −0,1% YoY
• ▍Net income −3,8% YoY
• ▍Net margin 25.1%

Revenue €1.78B, +4,2% YoY; Operating income +5,5% YoY.

• ▍Revenue €1.78B, +4,2% YoY
• ▍Operating income +5,5% YoY
• ▍Net income +6,3% YoY
• ▍Net margin 26.5%

Revenue €1.82B, +4,0% YoY; Operating income +6,3% YoY.

• ▍Revenue €1.82B, +4,0% YoY
• ▍Operating income +6,3% YoY
• ▍Net income +2,0% YoY
• ▍Net margin 28.0%

Revenue €1.87B; Operating income €786.5M.

• ▍Revenue €1.87B
• ▍Operating income €786.5M
• ▍Net margin 28.1%

Revenue €1.86B; Operating income €741.8M.

• ▍Revenue €1.86B
• ▍Operating income €741.8M
• ▍Net margin 27.3%

Revenue €1.71B; Operating income €680.3M.

• ▍Revenue €1.71B
• ▍Operating income €680.3M
• ▍Net margin 26.0%

Revenue €1.75B; Operating income €719.9M.

• ▍Revenue €1.75B
• ▍Operating income €719.9M
• ▍Net margin 28.5%

Revenue €7.42B, +5,2% YoY; Operating income +3,8% YoY.

• ▍Revenue €7.42B, +5,2% YoY
• ▍Operating income +3,8% YoY
• ▍Net income +2,4% YoY
• ▍Free cash flow +1,1% YoY
• ▍Net margin 26.9%

Revenue €7.05B, +14,9% YoY; Operating income +14,8% YoY.

• ▍Revenue €7.05B, +14,9% YoY
• ▍Operating income +14,8% YoY
• ▍Net income +13,0% YoY
• ▍Free cash flow +17,9% YoY
• ▍Net margin 27.6%

Revenue €6.13B, +15,0% YoY; Operating income +16,4% YoY.

• ▍Revenue €6.13B, +15,0% YoY
• ▍Operating income +16,4% YoY
• ▍Net income +15,4% YoY
• ▍Free cash flow +26,5% YoY
• ▍Net margin 28.1%

Revenue €5.33B, +19,9% YoY; Operating income +24,0% YoY.

• ▍Revenue €5.33B, +19,9% YoY
• ▍Operating income +24,0% YoY
• ▍Net income +23,5% YoY
• ▍Free cash flow +24,3% YoY
• ▍Net margin 28.0%