Sixt SIX2.DE
What does Sixt do?
Sixt is an internationally active mobility services provider headquartered in Germany. The core of its business is car rental for private and business customers, complemented by van and truck rental, car sharing, vehicle subscriptions, transfer and chauffeur services, and charging solutions for electric vehicles. Booking and use take place largely through its own app and digital sales channels.
Revenue comes predominantly from rental fees and additional services such as insurance cover, upgrades or extras. It also includes proceeds from selling used vehicles after their period of use. The company operates stations on its own account and works with franchise partners in other markets. Its customers include tourists, business travelers, corporate clients, as well as intermediaries and tour operators. In competition, Sixt faces large international providers and regional rental companies. The company is positioned with a focus on brand strength, a high-quality vehicle fleet, digitalization and a presence at airports and in city centers.
Score profile
Rank vs. Rental & Leasing Services (10 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Sixt ranks above average in the group Rental & Leasing Services (6.3/10). On growth, the company ranks in the middle in the group Rental & Leasing Services (5.0/10). On valuation (higher = cheaper), the stock ranks above average in the group Rental & Leasing Services (7.1/10). On financial strength, Sixt ranks above average in the group Rental & Leasing Services (6.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 9.7x | 16.5x | better than 83 % |
| Trailing P/E | 31.3x | 20.6x | better than 8 % |
| EV/EBITDA | 11.5x | 13.5x | better than 75 % |
| Price/sales | 0.8x | 0.8x | better than 55 % |
| Price/book | 1.7x | 2.4x | better than 94 % |
| Revenue growth | 9.9% | 7.7% | better than 65 % |
| Earnings growth | 5.8% | 13.8% | better than 35 % |
| Gross margin | 63.6% | 38.0% | better than 85 % |
| Operating margin | 13.4% | 17.7% | better than 35 % |
| Net margin | 6.8% | 4.7% | better than 65 % |
| Return on equity | 15.0% | 12.7% | better than 65 % |
| Debt/equity | 212.2% | 158.1% | better than 35 % |
| Current ratio | 2.0x | 1.3x | better than 65 % |
| Free cash flow yield | 16.2% | 5.7% | better than 79 % |
| Dividend yield | 4.3% | 1.4% | – |
| Payout ratio | 100.9% | 26.3% | – |
| Beta | 1.06 | 1.30 | – |
Valuation: what is Sixt worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Sixt a model range of 104.13 EUR to 127.69 EUR per share.
6 analysts, average rating “Strong buy”, average price target 94.33 EUR (+25.6%).
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
- Demand from leisure and business travelers determines fleet utilization and thus largely drives revenue.
- Prices per rental day and add-on sales such as insurance and extras influence profitability per vehicle.
- Favorable vehicle purchasing and high resale proceeds on used cars lower fleet costs and support the margin.
Risks
- Economic weakness, crises or travel restrictions can dampen demand significantly in the short term.
- Fluctuating used car prices and residual values weigh on earnings if vehicles must be sold below plan.
- High fleet financing makes the company vulnerable to rising interest rates and changes in capital markets.
What to look for with Sixt
Fleet utilization relative to fleet costs is particularly informative, as it shows how efficiently the capital tied up in vehicles generates returns.