DB:ZAR

Stock Analysis Report

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Executive Summary

Renk Aktiengesellschaft develops, produces, and distributes drive technology products worldwide. More Details

Rewards

Trading at 81.3% below our estimate of its fair value

Earnings grew by 104.3% over the past year

Pays a reliable dividend of 2.02%

Risk Analysis

No risks detected for ZAR from our risk checks.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Renk's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZAR is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ZAR's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0%

ZAR

-2.1%

DE Auto Components

-1.2%

DE Market


1 Year Return

2.8%

ZAR

-1.6%

DE Auto Components

2.3%

DE Market

Return vs Industry: ZAR exceeded the German Auto Components industry which returned -1.6% over the past year.

Return vs Market: ZAR matched the German Market which returned 2.3% over the past year.


Shareholder returns

ZARIndustryMarket
7 Day0%-2.1%-1.2%
30 Day0%0.1%2.5%
90 Day-3.5%17.3%8.1%
1 Year5.1%2.8%1.9%-1.6%5.6%2.3%
3 Year2.0%-4.4%-46.2%-51.2%3.6%-5.5%
5 Year21.6%9.0%-28.1%-37.9%41.3%21.3%

Long-Term Price Volatility Vs. Market

How volatile is Renk's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Renk undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZAR (€109) is trading below our estimate of fair value (€583.44)

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


Price To Earnings Ratio

PE vs Industry: ZAR is good value based on its PE Ratio (12.1x) compared to the XE Auto Components industry average (25.8x).

PE vs Market: ZAR is good value based on its PE Ratio (12.1x) compared to the German market (23.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZAR is good value based on its PB Ratio (1.5x) compared to the DE Auto Components industry average (1.8x).


Next Steps

Future Growth

How is Renk forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

62.9%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Renk has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Renk performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZAR has high quality earnings.

Growing Profit Margin: ZAR's current net profit margins (10.2%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: ZAR's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: ZAR's earnings growth over the past year (104.3%) exceeds its 5-year average (1.5% per year).

Earnings vs Industry: ZAR earnings growth over the past year (104.3%) exceeded the Auto Components industry -46.7%.


Return on Equity

High ROE: ZAR's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Renk's financial position?


Financial Position Analysis

Short Term Liabilities: ZAR's short term assets (€517.2M) exceed its short term liabilities (€201.8M).

Long Term Liabilities: ZAR's short term assets (€517.2M) exceed its long term liabilities (€134.5M).


Debt to Equity History and Analysis

Debt Level: ZAR is debt free.

Reducing Debt: ZAR had no debt 5 years ago.

Debt Coverage: ZAR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ZAR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Renk current dividend yield, its reliability and sustainability?

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZAR's dividend (2.02%) is higher than the bottom 25% of dividend payers in the German market (1.02%).

High Dividend: ZAR's dividend (2.02%) is low compared to the top 25% of dividend payers in the German market (3.51%).


Stability and Growth of Payments

Stable Dividend: ZAR's dividends per share have been stable in the past 10 years.

Growing Dividend: ZAR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.5%), ZAR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.0yrs

Average board tenure


CEO

Florian Hofbauer

13.33yrs

Tenure

€849,000

Compensation

Dipl.-Ing. Florian Hofbauer serves as the Chairman and Managing Director of MLOG Logistics GmbH (formerly MAN Logistics GmbH). Dipl.-Ing. Hofbauer has been Chief Executive Officer of RENK AG since Septembe...


CEO Compensation Analysis

Compensation vs Market: Florian's total compensation ($USD1.03M) is about average for companies of similar size in the German market ($USD1.20M).

Compensation vs Earnings: Florian's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Cletus von Pichler
Member of Supervisory Board1yrno datano data
Swantje Conrad
Member of the Supervisory Board0.25yrno datano data
Klaus Oberhausen
Member of Supervisory Board10.92yrs€1.76kno data
Hauke Hansen
Member of Supervisory Board1yrno datano data
Claus von Hermann
Chairman of Supervisory Board0.25yrno datano data
Sascha Dudzik
Employee Representative Member of Supervisory Board1yrno datano data
Klaus Refle
Employee Representative Member of the Supervisory Board2.75yrs€12.50kno data
Mario Sommer
Employee Representative Member of Supervisory Board2.75yrs€10.00kno data
Adela Lieb
Employee Representative Member of the Supervisory Board2.75yrs€10.00kno data
Lothar Evers
Employee Representative Member of the Supervisory Board2.75yrs€10.00kno data
Angela Steinecker
Deputy Chairwoman of Supervisory Board0.25yrno datano data
Cécile Dutheil
Member of Supervisory Board1yrno datano data

1.0yrs

Average Tenure

53.5yo

Average Age

Experienced Board: ZAR's board of directors are not considered experienced ( 1 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.


Top Shareholders

Company Information

Renk Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Renk Aktiengesellschaft
  • Ticker: ZAR
  • Exchange: DB
  • Founded: 1873
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €741.211m
  • Shares outstanding: 6.80m
  • Website: https://www.renk.de

Number of Employees


Location

  • Renk Aktiengesellschaft
  • GOegginger Strasse 73
  • Augsburg
  • Bavaria
  • 86159
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZARDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
0GKFLSE (London Stock Exchange)YesCommon StockGBEURJan 1992
ZARXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992

Biography

Renk Aktiengesellschaft develops, produces, and distributes drive technology products worldwide. The company operates through Special Gear Units, Vehicle Transmissions, Standard Gear Units, and Slide Beari...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 19:26
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.