XTRA:ARL

Stock Analysis Report

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Market Cap

€1.2b

Last Updated

2021/06/15 03:22 UTC

Data Sources

Company Financials +

Executive Summary

Aareal Bank AG, together with its subsidiaries, provides financing, software products, digital solutions, and payment transaction applications for the property sector and related industries in Germany and internationally. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

1.2%

ARL

1.8%

DE Mortgage

0.4%

DE Market


1 Year Return

15.7%

ARL

39.3%

DE Mortgage

30.8%

DE Market

Return vs Industry: ARL underperformed the German Mortgage industry which returned 39.3% over the past year.

Return vs Market: ARL underperformed the German Market which returned 30.8% over the past year.


Shareholder returns

ARLIndustryMarket
7 Day1.2%1.8%0.4%
30 Day-10.3%1.7%4.0%
90 Day-11.2%4.8%7.0%
1 Year17.8%15.7%42.0%39.3%35.6%30.8%
3 Year-40.0%-45.3%14.8%4.9%28.2%17.6%
5 Year-18.8%-34.3%62.4%41.1%61.0%38.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ARL (€20.6) is trading above our estimate of fair value (€20.37)

Significantly Below Fair Value: ARL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARL is unprofitable, so we can't compare its PE Ratio to the European Mortgage industry average.

PE vs Market: ARL is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ARL is good value based on its PB Ratio (0.4x) compared to the XE Mortgage industry average (0.8x).


Future Growth

How is Aareal Bank forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

59.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.01%).

Earnings vs Market: ARL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ARL's is expected to become profitable in the next 3 years.

Revenue vs Market: ARL's revenue (11.9% per year) is forecast to grow faster than the German market (5.5% per year).

High Growth Revenue: ARL's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARL's Return on Equity is forecast to be low in 3 years time (4.8%).


Past Performance

How has Aareal Bank performed over the past 5 years?

-29.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARL is currently unprofitable.

Growing Profit Margin: ARL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARL is unprofitable, and losses have increased over the past 5 years at a rate of 29.9% per year.

Accelerating Growth: Unable to compare ARL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARL is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (16.7%).


Return on Equity

High ROE: ARL has a negative Return on Equity (-1.82%), as it is currently unprofitable.


Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: ARL's Assets to Equity ratio (15.4x) is moderate.

Allowance for Bad Loans: ARL has a low allowance for bad loans (38%).

Low Risk Liabilities: 75% of ARL's liabilities are made up of primarily higher risk sources of funding.

Loan Level: ARL has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: ARL's Loans to Deposits ratio (252%) is high.

Level of Bad Loans: ARL has a high level of bad loans (5.3%).


Dividend

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

1.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARL's dividend (1.94%) is higher than the bottom 25% of dividend payers in the German market (0.99%).

High Dividend: ARL's dividend (1.94%) is low compared to the top 25% of dividend payers in the German market (3.16%).


Stability and Growth of Payments

Stable Dividend: ARL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ARL has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: ARL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ARL's dividends in 3 years are forecast to be covered by earnings (70.6% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Aareal Bank has no CEO, or we have no data on them.


Leadership Team

Experienced Management: ARL's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: ARL's board of directors are considered experienced (4.6 years average tenure).


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

Aareal Bank AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aareal Bank AG
  • Ticker: ARL
  • Exchange: XTRA
  • Founded: 1923
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: €1.233b
  • Shares outstanding: 59.86m
  • Website: https://www.aareal-bank.com

Number of Employees


Location

  • Aareal Bank AG
  • Paulinenstrasse 15
  • Wiesbaden
  • Hessen
  • 65189
  • Germany

Listings


Biography

Aareal Bank AG, together with its subsidiaries, provides financing, software products, digital solutions, and payment transaction applications for the property sector and related industries in Germany and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 03:22
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.