Defama Deutsche Fachmarkt AG

Defama Deutsche Fachmarkt AG has a market capitalization of EUR 116.16 million and a price-to-earnings ratio of 86.4, indicating a high valuation relative to its earnings. The company's price-to-book ratio is 2.73, suggesting that the market values the company at a premium to its book value. The liquidity position is weak, as evidenced by a current ratio of 0.05, which is significantly below the industry median and indicates a high reliance on long-term financing.

In terms of profitability, the company's return on equity is 3.16%, which is below the industry median for real estate firms, indicating suboptimal use of equity capital. The return on assets is 0.62%, further highlighting the company's inefficiency in generating returns from its asset base. The operating margin is 50.8%, which is relatively high, but the net margin is only 2.1%, suggesting significant non-operating expenses or taxes.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification, which increases exposure to regional economic downturns. The debt-to-equity ratio is 3.87, indicating a high leverage position that could amplify financial risk during periods of economic stress. The company's long-term debt of EUR 164.26 million is a significant portion of its total liabilities, which could constrain future investment flexibility.

Looking ahead, the company's revenue is expected to grow, but the exact rate is not specified. The current financial outlook is cautious, with a high price-to-earnings ratio and a weak liquidity position. The company's high leverage and weak liquidity position could limit its ability to respond to market opportunities or downturns. The risk assessment indicates a medium liquidity risk and a low dilution risk, but the company's net cash position is negative after subtracting total debt, which is a red flag for liquidity management.

Recent events and filings do not provide specific details on new projects or strategic initiatives, but the company's high price target of EUR 33.60 and a mean recommendation of 1.50 suggest some optimism among analysts. The company's strong-buy and buy ratings indicate that some analysts see potential for upside, but the lack of detailed guidance or strategic direction in recent filings may limit investor confidence.

Revenue grew 17.1% year-over-year to EUR 27.3 million in FY2026, demonstrating strong top-line expansion momentum.

Analysts assign a strong buy recommendation with a mean price target of EUR 32.7, implying 39.1% upside.

Net income CAGR of 16.2% over four years reflects consistent profitability growth alongside revenue expansion.

Debt-to-equity ratio of 3.87 places the company in the bottom quartile, signaling excessive leverage relative to peers.

Long-term debt increased to EUR 189.9 million in FY2026, raising significant credit risk concerns for investors.

Return on assets of 0.6% remains extremely low, indicating inefficient use of total assets to generate profit.

High credit risk and medium liquidity risk flags suggest potential difficulties in meeting short-term obligations.

Revenue €6.6M; Operating income €3.8M.

• ▍Revenue €6.6M
• ▍Operating income €3.8M
• ▍Net margin 31.6%

Revenue €6.6M; Operating income €2.5M.

• ▍Revenue €6.6M
• ▍Operating income €2.5M
• ▍Net margin 13.4%

Revenue €6.4M; Operating income €3.3M.

• ▍Revenue €6.4M
• ▍Operating income €3.3M
• ▍Net margin 21.0%

Revenue €27.3M, +17,1% YoY; Operating income +15,2% YoY.

• ▍Revenue €27.3M, +17,1% YoY
• ▍Operating income +15,2% YoY
• ▍Net income +9,9% YoY
• ▍Free cash flow −131,4% YoY
• ▍Net margin 16.7%

Revenue €23.3M, +15,4% YoY; Operating income −3,7% YoY.

• ▍Revenue €23.3M, +15,4% YoY
• ▍Operating income −3,7% YoY
• ▍Net income −22,9% YoY
• ▍Free cash flow +58,8% YoY
• ▍Net margin 17.8%

Revenue €20.2M, +18,1% YoY; Operating income +10,7% YoY.

• ▍Revenue €20.2M, +18,1% YoY
• ▍Operating income +10,7% YoY
• ▍Net income +7,0% YoY
• ▍Free cash flow −82,0% YoY
• ▍Net margin 26.6%

Revenue €17.1M, +17,5% YoY; Operating income +61,9% YoY.

• ▍Revenue €17.1M, +17,5% YoY
• ▍Operating income +61,9% YoY
• ▍Net income +101,1% YoY
• ▍Free cash flow +40,1% YoY
• ▍Net margin 29.4%

Revenue €14.6M; Operating income €5.6M.

• ▍Revenue €14.6M
• ▍Operating income €5.6M
• ▍Net margin 17.2%