Original-Research: Westwing Group SE (von NuWays AG): Buy

Classification of NuWays AG to Westwing Group SE

Company Name:	Westwing Group SE
ISIN:	DE000A2N4H07
Reason for the research:	Update
Recommendation:	Buy
from:	28.11.2025
Target price:	EUR 22.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Henry Wendisch

Following years of post-covid normalization, WEW is back on a self-induced growth path, independent of the consumer sentiment. With this multi-pager we dive deeper into this compelling investment case of one of our alpha ideas:

Rightsizing at the right time, in the right way. The post-COVID value creation plan fundamentally reshaped the company’s operating model. Management swiftly adapted to a new demand environment while always keeping a lean, scalable expansion across Europe in sight. The company rightsized its cost base, restructured several markets, modernized IT, and centralized logistics into a state-of-the-art hub, driving fulfillment efficiency gains and cost control. These actions have created a more agile and efficient organization, well positioned to capture future growth opportunities.

Westwing Collection - higher value, higher margins. As a result of the rise in WWC share of GMV from 41% in FY ´22 to 65% in FY ´25e, AOV went up from € 154 in FY ´22 to € 242 in FY ´25e. Consequently, a higher average order value (AOV) has driven structural gross margin gains (47.1% in FY ´22 to 52.2% in FY ´25e) and deeper brand loyalty. As the mix shifts further towards WWC, we see continued upside to profitability, one of Westwing´s key long-term levers.

European expansion resumes; UK next? We anticipate rapid progress in recently entered markets, with early signs already visible in the International segment’s +11% yoy sales growth in Q3 ’25. As Westwing continues to build scale across Europe, the next strategic leap should be the UK, a high-potential market that could significantly expand its addressable market reach and validate the brand’s ability to replicate success beyond the EU. We see this as a key catalyst for an accelerating top-line and as further re-rating potential.

High cash-generation with recovering capital efficiency. WEW’s business model benefits from favorable working capital dynamics, allowing it to operate with mostly negative WC and strong cash conversion. Currently, around 10% of sales convert to FCF, a figure expected to rise toward up to 20% as margins continue to improve. In addition, capital efficiency should recover from negative levels (eNuW: 13% ROIC FY ´25 vs -7% in FY ´24), lifted by higher adj. EBITDA margins, and decreasing amortization of intangibles, as the company leaves the legacy shop software change behind.

The combination of a highly attractive valuation (4.2x FY’26e EV/adj. EBITDA), management´s clockwork delivery of the value creation plan, imminent topline growth with operating leverage, a strong net cash position (€ 58m per Q3 ´25) and upbeat cash generation, underpins our conviction in a high-reward investment case and a compelling entry point into one of Europe´s leading design brands. Therefore, we reiterate our BUY rating and keep WEW in our AlphaList with an unchanged PT of € 22.00, based on DCF.

 

You can download the research here: westwinggroupse20251128multipageren4d986
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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