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
High growth potential second-rate dividend payer.
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.
7 Day Return
1 Year Return
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.
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
1 month ago | Simply Wall StIs Aareal Bank AG (ETR:ARL) Popular Amongst Institutions?
3 months ago | Simply Wall StHow Much Is Aareal Bank AG (ETR:ARL) CEO Getting Paid?
4 months ago | Simply Wall StHow Much Did Aareal Bank's(ETR:ARL) Shareholders Earn From Share Price Movements Over The Last Three Years?
Is Aareal Bank undervalued compared to its fair value and its price relative to the market?
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).
How is Aareal Bank forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
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%).
How has Aareal Bank performed over the past 5 years?
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.
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
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%).
What is Aareal Bank current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Hermann Merkens (54 yo)
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.
|Chairman of the Management Board (Leave of Absence)||5.5yrs||€5.01m||no data|
|CFO & Member of the Management Board||2.42yrs||€2.47m||no data|
|Member of the Management Board||15.5yrs||€3.33m||no data|
|Member of the Management Board||7.75yrs||€2.52m||no data|
|Chief Risk Officer & Member of the Management Board||5yrs||€2.47m||no data|
|Member of Management Board||4.67yrs||€2.99m||no data|
|Group Managing Director of Group Technology||no data||no data||no data|
|Head of Investor Relations||no data||no data||no data|
|Head of Corporate Communications division||3.08yrs||no data||no data|
|Head of Human Resources||no data||no data||no data|
|Group Managing Director of Corporate Strategy||4.67yrs||no data||no data|
|Managing Director of Special Property Finance||no data||no data||no data|
Experienced Management: ARL's management team is considered experienced (4.8 years average tenure).
|Independent Supervisory Board Member||5.83yrs||€105.00k||no data|
|Independent Chairman of the Supervisory Board||7.83yrs||€302.00k||no data|
|Independent Supervisory Board Member||5.83yrs||€140.00k||no data|
|Employee Representative Supervisory Board Member||14.83yrs||€78.00k||no data|
|Independent Supervisory Board Member||5.83yrs||€131.00k||no data|
|Independent Deputy Chairman of Supervisory Board||1.17yrs||€125.00k||no data|
|Independent Supervisory Board Member||5.83yrs||€104.00k||no data|
|Member of the Supervisory Board||0.83yr||no data||no data|
|Employee Representative Supervisory Board Member||2.92yrs||€85.00k||no data|
|Employee Representative Deputy Chairman of the Supervisory Board||2.17yrs||€126.00k||no data|
|Member of the Supervisory Board||0.83yr||no data||no data|
|Member of the Supervisory Board||1.17yrs||no data||no data|
Experienced Board: ARL's board of directors are considered experienced (4.4 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Aareal Bank AG's company bio, employee growth, exchange listings and data sources
- 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
- Aareal Bank AG
- Paulinenstrasse 15
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ARL||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jun 2002|
|ARL||XTRA (XETRA Trading Platform)||Yes||Ordinary Shares||DE||EUR||Jun 2002|
|0MG0||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||EUR||Jun 2002|
|AAAL.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jun 2002|
|ARLD||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Ordinary Shares||GB||EUR||Jun 2002|
|ARL||SWX (SIX Swiss Exchange)||Yes||Ordinary Shares||CH||CHF||Jun 2002|
|ARL||WBAG (Wiener Boerse AG)||Yes||Ordinary Shares||AT||EUR||Jun 2002|
|AAAL.Y||OTCPK (Pink Sheets LLC)||UNSPONSORED ADR||US||USD||Oct 2011|
|ARLB||DB (Deutsche Boerse AG)||UNSPONSORED ADR||DE||EUR||Oct 2011|
|114071919||BDL (Bourse de Luxembourg)||7.625%-FRN PERP EUR200000 'REGS'||LU||EUR||Nov 2014|
|A1TNDK||DB (Deutsche Boerse AG)||7.625%-FRN PERP EUR200000 'REGS'||DE||EUR||Nov 2014|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/03/05 19:03|
|End of Day Share Price||2021/03/05 00:00|
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.