Flatexdegiro FTK.DE
What does Flatexdegiro do?
Flatexdegiro is a European online broker with an integrated banking platform. The company offers execution-only securities trading for retail investors, including stocks, funds, ETFs, exchange-traded products, savings plans and crypto assets. Under the flatex brand, the offering is aimed mainly at customers in German-speaking countries, and under the DEGIRO brand at investors in numerous other European countries. ViTrade also targets professional traders.
It earns money mainly through transaction fees, interest income from customer deposits and securities lending, and fees for additional services. There is also revenue from technology-based services, such as the processing of securities and payment transactions and outsourcing for other financial institutions. Its own banking license and its self-developed, single-source IT infrastructure allow cost-efficient processing. In competition, the company faces direct banks, established branch-based banks and neobrokers. It is positioned through low prices, a broad product range and the scalability of its platform.
Score profile
Rank vs. Capital Markets (23 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Flatexdegiro ranks in the middle in the group Capital Markets (5.6/10). On growth, the company ranks in the middle in the group Capital Markets (4.7/10). On valuation (higher = cheaper), the stock ranks above average in the group Capital Markets (7.5/10). On financial strength, Flatexdegiro ranks in the middle in the group Capital Markets (5.1/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 9.6x | 13.0x | better than 78 % |
| Trailing P/E | 12.3x | 15.9x | better than 82 % |
| Price/sales | 3.8x | 3.6x | better than 37 % |
| Price/book | 2.5x | 2.7x | better than 65 % |
| Revenue growth | 12.4% | 10.8% | better than 61 % |
| Earnings growth | 0.0% | 10.1% | better than 33 % |
| Gross margin | 86.8% | 91.0% | better than 41 % |
| Operating margin | 47.9% | 22.2% | better than 80 % |
| Net margin | 32.3% | 15.8% | better than 80 % |
| Return on equity | 0.0% | 19.4% | better than 22 % |
| Debt/equity | 16.5% | 141.3% | better than 89 % |
| Free cash flow yield | 0.0% | 0.0% | better than 55 % |
| Dividend yield | 1.3% | 1.8% | – |
| Payout ratio | 16.3% | 22.0% | – |
| Beta | 1.13 | 1.18 | – |
Valuation: what is Flatexdegiro worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Flatexdegiro a model range of 24.88 EUR to 30.61 EUR per share.
12 analysts, average rating “Buy”, average price target 39.96 EUR (+76.8%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Retail investors' trading activity largely determines transaction volumes and therefore commission revenue.
- The interest rate environment influences income from customer deposits, treasury investments and securities lending.
- Winning and retaining customers and scaling the proprietary platform determine the cost structure.
Risks
- Falling interest rates can weigh on net interest income, which makes up a significant share of revenue.
- Weak or quiet market phases dampen retail investors' trading activity and thus the commission business.
- Regulatory changes, for example regarding payment for order flow, fee models or capital requirements, could alter the business model.
What to look for with Flatexdegiro
Client assets and the number of transactions are informative, as they form the basis for commission and interest income and show platform utilization.