Cembra Money Bank (SWX:CMBN) - Share price, News & Analysis

CMBN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	3/6
Financial Health	5/6
Dividends	4/6

CMBN Stock Overview

Cembra Money Bank AG provides consumer finance products and services in Switzerland.

Rewards

Trading at 27.9% below our estimate of its fair value

Earnings are forecast to grow 4.72% per year

Earnings have grown 2.2% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Cembra Money Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cembra Money Bank
Historical stock prices
Current Share Price	CHF70.05
52 Week High	CHF106.50
52 Week Low	CHF52.65
Beta	0.62
1 Month Change	2.41%
3 Month Change	5.82%
1 Year Change	-34.16%
3 Year Change	-25.60%
5 Year Change	-22.77%
Change since IPO	27.36%

Shareholder Returns

	CMBN	CH Consumer Finance	CH Market
7D	3.9%	-0.05%	3.4%
1Y	-34.2%	-40.4%	-12.4%

Return vs Industry: CMBN exceeded the Swiss Consumer Finance industry which returned -40.3% over the past year.

Return vs Market: CMBN underperformed the Swiss Market which returned -15% over the past year.

Price Volatility

Is CMBN's price volatile compared to industry and market?
CMBN volatility
CMBN Average Weekly Movement	3.8%
Consumer Finance Industry Average Movement	5.9%
Market Average Movement	4.5%
10% most volatile stocks in CH Market	7.6%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: CMBN is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CMBN's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1912	916	Holger Laubenthal	https://www.cembra.ch

Cembra Money Bank AG provides consumer finance products and services in Switzerland. The company offers savings products, including medium-term notes and deposit accounts; loans comprising cash, consumer, personal, business, and auto loans; credit card receivables; and leasing services for new and used vehicles, including cars, light commercial vehicles, motorcycles, and caravans, as well as corporate leasing services. It also provides financial protection products in case of involuntary unemployment, accident, illness, or disability; travel and flight, and card protection insurance products; investment products; and credit cards, mobile payment, and e-services.

Cembra Money Bank Fundamentals Summary

How do Cembra Money Bank's earnings and revenue compare to its market cap?
CMBN fundamental statistics
Market Cap	CHF2.06b
Earnings (TTM)	CHF161.50m
Revenue (TTM)	CHF446.74m

12.7x

P/E Ratio

4.6x

P/S Ratio

Is CMBN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMBN income statement (TTM)
Revenue	CHF446.74m
Cost of Revenue	CHF0
Gross Profit	CHF446.74m
Other Expenses	CHF285.24m
Earnings	CHF161.50m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)	5.50
Gross Margin	100.00%
Net Profit Margin	36.15%
Debt/Equity Ratio	207.6%

How did CMBN perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

70%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CMBN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CMBN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CMBN. This is calculated by dividing CMBN's market cap by their current preferred multiple.
What is CMBN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CHF2.06b

CMBN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	2.7x

Price to Earnings Ratio vs Peers

How does CMBN's PE Ratio compare to its peers?

CMBN PE Ratio vs Peers

The above table shows the PE ratio for CMBN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.2x

Forward PE

Price-To-Earnings vs Peers: CMBN is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (12.2x).

Price to Earnings Ratio vs Industry

How does CMBN's PE Ratio compare vs other companies in the Consumer Finance Industry?

Price-To-Earnings vs Industry: CMBN is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the European Consumer Finance industry average (9.8x)

Price to Earnings Ratio vs Fair Ratio

What is CMBN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CMBN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.7x
Fair PE Ratio	12.5x

Price-To-Earnings vs Fair Ratio: CMBN is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).

Share Price vs Fair Value

What is the Fair Price of CMBN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CMBN (CHF70.05) is trading below our estimate of fair value (CHF97.18)

Significantly Below Fair Value: CMBN is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: CMBN is poor value based on its PEG Ratio (2.7x)

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Future Growth

How is Cembra Money Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMBN's forecast earnings growth (4.7% per year) is above the savings rate (-0.3%).

Earnings vs Market: CMBN's earnings (4.7% per year) are forecast to grow slower than the Swiss market (6.3% per year).

High Growth Earnings: CMBN's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMBN's revenue (3.8% per year) is forecast to grow slower than the Swiss market (4.3% per year).

High Growth Revenue: CMBN's revenue (3.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CMBN's Return on Equity is forecast to be low in 3 years time (13.2%).

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Past Performance

How has Cembra Money Bank performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CMBN has a high level of non-cash earnings.

Growing Profit Margin: CMBN's current net profit margins (36.1%) are higher than last year (34.7%).

Past Earnings Growth Analysis

Earnings Trend: CMBN's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: CMBN's earnings growth over the past year (5.6%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: CMBN earnings growth over the past year (5.6%) underperformed the Consumer Finance industry 25%.

Return on Equity

High ROE: CMBN's Return on Equity (13.5%) is considered low.

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Financial Health

How is Cembra Money Bank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

5/6

Financial Health Score 5/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: CMBN's Assets to Equity ratio (5.9x) is low.

Allowance for Bad Loans: CMBN has a sufficient allowance for bad loans (249%).

Low Risk Liabilities: 54% of CMBN's liabilities are made up of primarily low risk sources of funding.

Loan Level: CMBN has an appropriate level of Loans to Assets ratio (87%).

Low Risk Deposits: CMBN's Loans to Deposits ratio (194%) is high.

Level of Bad Loans: CMBN has an appropriate level of bad loans (0.5%).

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Dividend

What is Cembra Money Bank current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CMBN's dividend (5.5%) is higher than the bottom 25% of dividend payers in the Swiss market (2.06%).

High Dividend: CMBN's dividend (5.5%) is in the top 25% of dividend payers in the Swiss market (4.14%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CMBN has been paying a dividend for less than 10 years.

Growing Dividend: CMBN's dividend payments have increased, but the company has only paid a dividend for 8 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (70%), CMBN's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: CMBN's dividends in 3 years are forecast to be covered by earnings (70.5% payout ratio).

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure

CEO

Holger Laubenthal (49 yo)

1.25yrs

Tenure

CHF1,318,396

Compensation

Mr. Holger Laubenthal is a Member of Advisory Board at Crypto 1 Acquisition Corp. He has been the Chief Executive Officer and Member of Management Board of Cembra Money Bank AG since March 1, 2021. He serv...

CEO Compensation Analysis

Compensation vs Market: Holger's total compensation ($USD1.38M) is about average for companies of similar size in the Swiss market ($USD1.35M).

Compensation vs Earnings: Insufficient data to compare Holger's compensation with company performance.

Leadership Team

Experienced Management: CMBN's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: CMBN's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31