XTRA:CBK

Stock Analysis Report

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Market Cap

€8.1b

Last Updated

2021/06/15 02:57 UTC

Data Sources

Company Financials +

Executive Summary

Commerzbank AG provides banking and capital market services to private and small business customers, multinational groups, financial service providers, and institutional clients worldwide. More Details

Rewards

Trading at 28.5% below our estimate of its fair value

Earnings are forecast to grow 57.57% per year

Risk Analysis

No risks detected for CBK from our risk checks.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CBK is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CBK's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.3%

CBK

-0.5%

DE Banks

0.4%

DE Market


1 Year Return

50.1%

CBK

36.9%

DE Banks

30.8%

DE Market

Return vs Industry: CBK exceeded the German Banks industry which returned 36.9% over the past year.

Return vs Market: CBK exceeded the German Market which returned 30.8% over the past year.


Shareholder returns

CBKIndustryMarket
7 Day-4.3%-0.5%0.4%
30 Day-1.0%1.4%4.0%
90 Day22.3%6.3%7.0%
1 Year50.1%50.1%41.1%36.9%35.6%30.8%
3 Year-25.6%-27.6%-7.1%-15.3%28.2%17.6%
5 Year-2.7%-5.5%10.6%-8.2%61.0%38.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBK (€6.43) is trading below our estimate of fair value (€8.99)

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


Price To Earnings Ratio

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

PE vs Market: CBK 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 CBK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CBK is good value based on its PB Ratio (0.3x) compared to the XE Banks industry average (0.7x).


Future Growth

How is Commerzbank forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

57.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CBK's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: CBK's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBK's Return on Equity is forecast to be low in 3 years time (4.1%).


Past Performance

How has Commerzbank performed over the past 5 years?

-47.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBK is currently unprofitable.

Growing Profit Margin: CBK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CBK is unprofitable, and losses have increased over the past 5 years at a rate of 47.2% per year.

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

Earnings vs Industry: CBK is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (2.6%).


Return on Equity

High ROE: CBK has a negative Return on Equity (-8.22%), as it is currently unprofitable.


Financial Health

How is Commerzbank'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: CBK's Assets to Equity ratio (18.4x) is moderate.

Allowance for Bad Loans: CBK has a low allowance for bad loans (64%).

Low Risk Liabilities: 74% of CBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: CBK has an appropriate level of Loans to Assets ratio (48%).

Low Risk Deposits: CBK's Loans to Deposits ratio (69%) is appropriate.

Level of Bad Loans: CBK has an appropriate level of bad loans (1.8%).


Dividend

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

1.95%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CBK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CBK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CBK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CBK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CBK is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CBK's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Manfred Knof (54 yo)

0.42

Tenure

Dr. Manfred Knof has been Chairman of the Board, Managing Director and Chief Executive Officer at Commerzbank AG since January 1, 2021. Dr. Knof serves as the Head of Retail Division for Deutsche Bank. He ...


Leadership Team

Experienced Management: CBK's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: CBK's board of directors are not considered experienced ( 1.6 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

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


Key Information

  • Name: Commerzbank AG
  • Ticker: CBK
  • Exchange: XTRA
  • Founded: 1870
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €8.053b
  • Shares outstanding: 1.25b
  • Website: https://www.commerzbank.com

Number of Employees


Location

  • Commerzbank AG
  • Kaiserplatz
  • Frankfurt am Main
  • Hessen
  • 60311
  • Germany

Listings


Biography

Commerzbank AG provides banking and capital market services to private and small business customers, multinational groups, financial service providers, and institutional clients worldwide. It operates thro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 02:57
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.