Since Vonovia’s poorly timed acquisition of Deutsche Wohnen in 2021, it has been focused on deleveraging its balance sheet and diversifying revenue through nonrental activities. Specifically, these initiatives include expanding the internal craftsmen organization (VTS), ramping up ‘development to sell’ projects, and monetizing the portfolio through recurring sales.
Vonovia’s core rental business is supported by a severe housing shortage in German urban areas that is expected to persist for decades. This imbalance ensures virtually full occupancy and high collection rates (98% and >99% in 2025, respectively).
Vonovia fails to earn its cost of capital, and its rental portfolio’s net initial yield is lower than its marginal cost of new debt.
|
Metric
|
VNA
|
VMRK
|
ESS
|
|---|---|---|---|
Price/Earnings (Normalized) | 3.83 | 34.89 | 52.01 |
Price/Book Value | 0.52 | 1.98 | 3.25 |
Price/Sales | 2.80 | 7.74 | 9.01 |
Price/Cash Flow | 9.19 | 14.57 | 16.70 |
|
Metric
|
VNA
|
VMRK
|
ESS
|
|---|---|---|---|
Quick Ratio | 0.40 | 0.05 | 0.30 |
Current Ratio | 0.89 | 0.14 | 0.31 |
Interest Coverage | 4.79 | 4.64 | 2.59 |
|
Metric
|
VNA
|
VMRK
|
ESS
|
|---|---|---|---|
Return on Assets (Normalized) | 4.59% | 3.60% | 3.10% |
Return on Equity (Normalized) | 15.93% | 6.73% | 7.37% |
Return on Invested Capital (Normalized) | 8.51% | 4.66% | 4.79% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
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Economic Moat
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Market Cap
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