XTRA:ARL

Stock Analysis Report

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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

High growth potential second-rate dividend payer.


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 +/- 7% a week.

Volatility Over Time: ARL's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

ARL

1.2%

DE Mortgage

0.5%

DE Market


1 Year Return

-8.8%

ARL

10.9%

DE Mortgage

21.5%

DE Market

Return vs Industry: ARL underperformed the German Mortgage industry which returned 9.6% over the past year.

Return vs Market: ARL underperformed the German Market which returned 19.1% over the past year.


Shareholder returns

ARLIndustryMarket
7 Day-0.5%1.2%0.5%
30 Day13.7%3.6%-0.8%
90 Day0.8%5.2%6.6%
1 Year-8.8%-8.8%12.0%10.9%25.3%21.5%
3 Year-37.6%-45.6%10.8%4.0%14.5%4.5%
5 Year-7.2%-27.1%64.1%48.9%45.1%24.5%

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?

0.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ARL (€21.88) is trading above our estimate of fair value (€18.76)

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 XE 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 (0.5x) compared to the XE Mortgage industry average (1x).


Next Steps

Future Growth

How is Aareal Bank forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

45.7%

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 (0.07%).

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 (29.2% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: ARL's revenue (29.2% per year) is forecast to grow faster 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 (7%).


Next Steps

Past Performance

How has Aareal Bank performed over the past 5 years?

-25.8%

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 25.8% 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 (-11.6%).


Return on Equity

High ROE: ARL has a negative Return on Equity (-2.43%), as it is currently unprofitable.


Next Steps

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 (15.6x) is moderate.

Allowance for Bad Loans: ARL has a low allowance for bad loans (49%).

Low Risk Liabilities: 76% 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 (253%) is high.

Level of Bad Loans: ARL has a high level of bad loans (3.6%).


Next Steps

Dividend

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

6.86%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ARL's dividend (6.86%) is higher than the bottom 25% of dividend payers in the German market (0.93%).

High Dividend: ARL's dividend (6.86%) is in the top 25% of dividend payers in the German market (3.42%)


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's dividend payments have increased, but the company has only paid a dividend for 7 years.


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 (74.9% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Hermann Merkens (54 yo)

5.5yrs

Tenure

€5,008,432

Compensation

Mr. Hermann Josef Merkens serves as Chairman of the supervisory Board at Aareal Beteiligungen AG. Mr. Merkens is currently on Leave of Absence. He served as the Chairman of the Management Board at Aareal B...


CEO Compensation Analysis

Compensation vs Market: Hermann's total compensation ($USD5.97M) is above average for companies of similar size in the German market ($USD1.66M).

Compensation vs Earnings: Hermann's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Hermann Merkens
Chairman of the Management Board (Leave of Absence)5.5yrs€5.01mno data
Marc Hess
CFO & Member of the Management Board2.42yrs€2.47mno data
Thomas Ortmanns
Member of the Management Board15.5yrs€3.33mno data
Dagmar Knopek
Member of the Management Board7.75yrs€2.52mno data
Christiane Kunisch-Wolff
Chief Risk Officer & Member of the Management Board5yrs€2.47mno data
Christof Winkelmann
Member of Management Board4.67yrs€2.99mno data
Holger Spielberg
Group Managing Director of Group Technologyno datano datano data
Jürgen Junginger
Head of Investor Relationsno datano datano data
Cornelia Müller
Head of Corporate Communications division3.08yrsno datano data
Brigitte Butz
Head of Human Resourcesno datano datano data
Rene Steurer
Group Managing Director of Corporate Strategy4.67yrsno datano data
Severin Schöttmer
Managing Director of Special Property Financeno datano datano data

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: ARL's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sylvia Seignette
Independent Supervisory Board Member5.83yrs€105.00kno data
Marija Korsch
Independent Chairman of the Supervisory Board7.83yrs€302.00kno data
Hans-Dietrich Voigtländer
Independent Supervisory Board Member5.83yrs€140.00kno data
Thomas Hawel
Employee Representative Supervisory Board Member14.83yrs€78.00kno data
Hermann Wagner
Independent Supervisory Board Member5.83yrs€131.00kno data
Richard Peters
Independent Deputy Chairman of Supervisory Board1.17yrs€125.00kno data
Elisabeth Stheeman
Independent Supervisory Board Member5.83yrs€104.00kno data
Christof von Dryander
Member of the Supervisory Board0.83yrno datano data
Petra Heinemann-Specht
Employee Representative Supervisory Board Member2.92yrs€85.00kno data
Klaus Novatius
Employee Representative Deputy Chairman of the Supervisory Board2.17yrs€126.00kno data
Jana Brendel
Member of the Supervisory Board0.83yrno datano data
Jan Lehmann
Member of the Supervisory Board1.17yrsno datano data

4.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ARL's board of directors are considered experienced (4.4 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: €1.305b
  • Shares outstanding: 59.86m
  • Website: https://www.aareal-bank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2002
ARLXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJun 2002
0MG0LSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2002
AAAL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2002
ARLDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2002
ARLSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJun 2002
ARLWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 2002
AAAL.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2011
ARLBDB (Deutsche Boerse AG)UNSPONSORED ADRDEEUROct 2011
114071919BDL (Bourse de Luxembourg)7.625%-FRN PERP EUR200000 'REGS'LUEURNov 2014
A1TNDKDB (Deutsche Boerse AG)7.625%-FRN PERP EUR200000 'REGS'DEEURNov 2014

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 Analysis2021/03/05 19:03
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.