Sixt SE "Mispriced quality in an unloved sector" (Buy) Jiang

Research evidence excerpt

Sixt SE "Mispriced quality in an unloved sector" (Buy) Jiang

re

From To % ch Cons.

expansion instead of overall market strength. 12/26E 6.63 6.86 3 6.87

12/27E 7.40 7.55 2 7.57

Reiterate Buy as an idiosyncratic story while acknowledging sector challenges 12/28E 8.15 8.30 2 8.35

Since launching, the strongest pushback we hear from investors has been the sector

Zehua Jiangthesis instead of idiosyncratic factors. Indeed, the car rental industry is highly

Analyst

fragmented, competitive, and has suffered in the past from undisciplined expansion. Sixt zehua.jiang@ubs.com

is differentiated in our view as it is positioned as more premium (58% cars from premium +44-20-7567 0860

brands), more resilient, and disciplined in fleet management. This has been evidenced

Patrick Hummel, CFAquarter after quarter with a constantly within-demand fleet size and record high

utilization rates. With no basis for industry fleet expansion, we believe current share patrick.hummel@ubs.com

prices offer interesting entry opportunities. +41-44-239 52 54

David Lesne

Valuation: New PT of €83 from €82, lower valuation vs historical range

unjustified david.lesne@ubs.com

Shares are trading at 9x 2026 EPS UBSe, not even close to the lower end of the 12-19x +33-14-888 3034

historical range. Recall, Sixt has been growing its top line at DD% excl. FX or MSD% on

a reported basis, and the return to 10% EBT margin is well in sight (9.8% and 10.3%

2026-27E on UBS estimates).

Highlights (€m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 3,621 4,002 4,283 4,541 4,770 5,010 5,262 5,526

EBIT (UBS) 573 483 543 589 633 676 706 751

Net earnings (UBS) 335 244 286 322 354 390 418 456

EPS (UBS, diluted) (€) 7.14 5.20 6.09 6.86 7.55 8.30 8.90 9.70

DPS (net) (€) 3.90 2.70 3.30 3.77 4.15 4.56 4.89 5.33