March 2, 2024

Sixth: Why can the class still be moved to the fast track?

Sixt shares are up just 6% this year. This creates potential for latecomers. Sixt wants to score points with cost discipline, a limited fleet and expand its US business. By 2025, earnings per share could increase from €7.34 to more than €8, so the P/E ratio of 12.5 may decline. The potential for another dividend increase and an attractive dividend yield of more than four% could put the stock on the fast track.

Sixt exceeds the values ​​recorded in the pre-coronavirus year 2019

Sixt was the biggest loser in the pandemic, but now the travel boom is back. Sixt achieves new records and in the third quarter, revenues grew by 13% to 1.13 billion euros. This set a quarterly record. Earnings before tax (EBT) were €246.9 million, 70% higher than in 2019 before coronavirus. The business was driven by high travel demand and a record fleet averaging 189,000 vehicles. In addition, car rental prices were clearly higher than the 2019 level. Management estimates annual forecasts of sales of around €3.6 billion and EBIT of €460-500 million.

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