XTRA:PBB

Stock Analysis Report

Deutsche Pfandbriefbank

Executive Summary

Deutsche Pfandbriefbank AG, a specialist bank, provides real estate and public investment finance in Europe and the United States.


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PBB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.3%

PBB

-3.6%

DE Mortgage

-5.7%

DE Market


1 Year Return

39.9%

PBB

10.3%

DE Mortgage

6.1%

DE Market

Return vs Industry: PBB exceeded the German Mortgage industry which returned 10.3% over the past year.

Return vs Market: PBB exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

PBBIndustryMarket
7 Day-7.3%-3.6%-5.7%
30 Day-1.1%-0.4%-5.7%
90 Day3.1%3.1%-3.6%
1 Year52.6%39.9%14.5%10.3%9.3%6.1%
3 Year84.7%42.7%37.5%23.5%8.9%-0.7%
5 Yearn/a58.6%43.2%13.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PBB (€14.27) is trading above our estimate of fair value (€10.69)

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


Price To Earnings Ratio

PE vs Industry: PBB is poor value based on its PE Ratio (10.7x) compared to the Mortgage industry average (10.3x).

PE vs Market: PBB is good value based on its PE Ratio (10.7x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: PBB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PBB is overvalued based on its PB Ratio (0.8x) compared to the XE Mortgage industry average (0.7x).


Next Steps

Future Growth

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

-5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBB's earnings are forecast to decline over the next 3 years (-5.1% per year).

Earnings vs Market: PBB's earnings are forecast to decline over the next 3 years (-5.1% per year).

High Growth Earnings: PBB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PBB's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: PBB's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PBB's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has Deutsche Pfandbriefbank performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBB has high quality earnings.

Growing Profit Margin: PBB's current net profit margins (39.3%) are lower than last year (42.2%).


Past Earnings Growth Analysis

Earnings Trend: PBB's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: PBB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PBB had negative earnings growth (-5.2%) over the past year, making it difficult to compare to the Mortgage industry average (-1.3%).


Return on Equity

High ROE: PBB's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Deutsche Pfandbriefbank'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

Inventory Level: PBB has a low level of unsold assets or inventory.

Debt Coverage by Assets: PBB's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: PBB's level of assets compared to its equity is moderate.

Allowance for Bad Loans: PBB has a low allowance for bad loans.

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

Loan Level: PBB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PBB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: PBB has an appropriate level of bad loans (0.47%)


Next Steps

Dividend

What is Deutsche Pfandbriefbank's current dividend yield, its reliability and sustainability?

7.01%

Current Dividend Yield


Dividend Yield vs Market

company7.0%marketbottom25%1.4%markettop25%3.8%industryaverage5.1%forecastin3Years5.9%

Current dividend yield vs market & industry

Notable Dividend: PBB's dividend (7.01%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: PBB's dividend (7.01%) is in the top 25% of dividend payers in the German market (3.8%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PBB has been paying a dividend for less than 10 years.

Growing Dividend: PBB's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.3%), PBB's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PBB's dividends in 3 years are forecast to be covered by earnings (76.4% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Andreas Arndt (61yo)

5.3yrs

Tenure

€1,444,000

Compensation

Mr. Andreas Arndt has been the Chief Executive Officer and Chairman of Management Board at Deutsche Pfandbriefbank AG since May 12, 2016 and has been its Chief Financial Officer since October 2014. Mr. Arn ...


CEO Compensation Analysis

Compensation vs Market: Andreas's total compensation ($USD1.57M) is about average for companies of similar size in the German market ($USD1.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andreas Arndt
Chairman of Management Board5.3yrs€1.44mno data
Thomas Köntgen
Dep. Chairman of Mgmt. Board and Dep. CEO of Real Estate Finance & Public Investment Finance0yrs€1.35mno data
Andreas Schenk
Chief Risk Officer & Member of Management Board5.9yrs€1.29mno data
Marcus Schulte
Treasurer & Member of Management Board1.1yrsno datano data
Michael Heuber
Head of Investor Relations / Rating Agency Relations0yrsno datano data
Walter Allwicher
Head of Communications10.5yrsno datano data
Gehard Meitinger
Head of Real Estate Finance Germany0yrsno datano data

5.6yrs

Average Tenure

51yo

Average Age

Experienced Management: PBB's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Duhnkrack
Supervisory Board Member4.6yrs€54.15kno data
Georg Kordick
Employee Representative Supervisory Board Member10.7yrs€38.68kno data
Joachim Plesser
Supervisory Board Member5.5yrs€94.61kno data
Günther Bräunig
Supervisory Board Chairman5.5yrs€167.45kno data
Dagmar Kollmann
Deputy Chairman of Supervisory Board10.5yrs€119.97kno data
Heike Theißing
Employee Representative Supervisory Board Member8.6yrs€53.55kno data
Christian Gebauer-Rochholz
Employee Representative Supervisory Board Member7.3yrs€39.27kno data
Jutta. Dönges
Supervisory Board Member1.7yrs€35.79kno data
Oliver Puhl
Supervisory Board Member3.8yrs€52.96kno data

5.5yrs

Average Tenure

59yo

Average Age

Experienced Board: PBB's board of directors are considered experienced (5.5 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

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


Key Information

  • Name: Deutsche Pfandbriefbank AG
  • Ticker: PBB
  • Exchange: XTRA
  • Founded: 1922
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: €1.928b
  • Shares outstanding: 134.48m
  • Website: https://www.pfandbriefbank.com

Number of Employees


Location

  • Deutsche Pfandbriefbank AG
  • Freisinger Strasse 5
  • Unterschleißheim
  • Bavaria
  • 85716
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0R9KLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
PBBXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
PBBSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
PBBDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
PBBETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
PBBWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
PBBG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Deutsche Pfandbriefbank AG, a specialist bank, provides real estate and public investment finance in Europe and the United States. Its real estate financing activities include a range of financing instruments, such as financing investment projects, development finance, cross-border portfolio financing, investment bridge finance facilities, standby/backup facilities, and derivatives. The company primarily finances office buildings, retail properties, residential buildings, and logistics properties targeting real estate companies, institutional investors, and real estate funds. It is also involved in the public investment financing activities, such as financing for public sector facilities, municipal and residential buildings, utilities, infrastructure, medical and geriatric care facilities, and administration and insurance facilities. The company’s lending products include investment loans and export finance, as well as PPP-lending for public goods investments and infrastructure comprising project finance. In addition, the company provides advisory services. It has offices in four locations within Germany; and five locations in London, Madrid, Paris, Stockholm, and New York City. The company was formerly known as Hypo Real Estate Bank AG and changed its name to Deutsche Pfandbriefbank AG in June 2009. The company was founded in 1922 and is headquartered in Unterschleißheim, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 23:08
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.