XTRA:PCZ

Stock Analysis Report

ProCredit Holding KGaA

Executive Summary

ProCredit Holding AG & Co. KGaA, through its subsidiaries, operates as a development-oriented commercial banking company that offers various financial services to small and medium businesses, and private individuals in Germany, Eastern Europe, South Eastern Europe, and South America.

Rewards

Trading at 34.4% below its fair value

Earnings are forecast to grow 11.03% per year

Earnings grew by 6.1% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has ProCredit Holding KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

PCZ

1.3%

DE Banks

0.7%

DE Market


1 Year Return

-28.3%

PCZ

-16.1%

DE Banks

15.1%

DE Market

Return vs Industry: PCZ underperformed the German Banks industry which returned -16.1% over the past year.

Return vs Market: PCZ underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

PCZIndustryMarket
7 Day-0.7%1.3%0.7%
30 Day-8.4%-6.9%-0.7%
90 Day-2.1%-3.2%5.9%
1 Year-25.8%-28.3%-13.4%-16.1%18.7%15.1%
3 Yearn/a-22.4%-26.0%19.2%8.6%
5 Yearn/a-2.9%-26.4%39.0%20.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ProCredit Holding KGaA undervalued compared to its fair value and its price relative to the market?

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCZ (€7.1) is trading below our estimate of fair value (€10.83)

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


Price To Earnings Ratio

PE vs Industry: PCZ is good value based on its PE Ratio (7.2x) compared to the Banks industry average (16.2x).

PE vs Market: PCZ is good value based on its PE Ratio (7.2x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: PCZ is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: PCZ is good value based on its PB Ratio (0.5x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is ProCredit Holding KGaA forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCZ's forecast earnings growth (11% per year) is above the savings rate (-0.4%).

Earnings vs Market: PCZ's earnings (11% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: PCZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: PCZ's revenue (7.1% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: PCZ's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PCZ's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has ProCredit Holding KGaA performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCZ has high quality earnings.

Growing Profit Margin: PCZ's current net profit margins (22.9%) are higher than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: PCZ's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: PCZ's earnings growth over the past year (6.1%) exceeds its 5-year average (5.8% per year).

Earnings vs Industry: PCZ earnings growth over the past year (6.1%) exceeded the Banks industry 3.9%.


Return on Equity

High ROE: PCZ's Return on Equity (7.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ProCredit Holding KGaA'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: PCZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: PCZ's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: PCZ's level of assets compared to its equity is low.

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

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

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

Low Risk Deposits: PCZ's loans are broadly funded by customer deposits.

Level of Bad Loans: PCZ has a high level of bad loans (2.57%)


Next Steps

Dividend

What is ProCredit Holding KGaA's current dividend yield, its reliability and sustainability?

4.23%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.6%industryaverage3.8%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: PCZ's dividend (4.23%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: PCZ's dividend (4.23%) is in the top 25% of dividend payers in the German market (3.61%)


Stability and Growth of Payments

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

Growing Dividend: PCZ has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.2%), PCZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PCZ's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).


Next Steps

Management

What is the CEO of ProCredit Holding KGaA's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average board tenure


CEO

ProCredit Holding KGaA has no CEO, or we have no data on them.


Board Age and Tenure

4.5yrs

Average Tenure

Experienced Board: PCZ's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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.


Management Team

  • Gabriel Schor (67yo)

    MD & Member of the Management Board of Procredit General Partner AG

    • Tenure: 0yrs
    • Compensation: €187.22k
  • Rossana Mazzilli

    Chief Legal Counsel

    • Tenure: 0yrs
  • Sandrine Massiani (48yo)

    Member of the Management Board of Procredit General Partner AG

    • Tenure: 2.8yrs
    • Compensation: €187.14k

Board Members

  • Rainer Ottenstein (61yo)

    Supervisory Board Member

    • Tenure: 3.1yrs
  • Claus-Peter Zeitinger

    Supervisory Board Chairman

    • Tenure: 0yrs
  • Jasper Snoek

    Supervisory Board Member

    • Tenure: 12.9yrs
  • Petar Slavov

    Member of Supervisory Board

    • Tenure: 5.9yrs
  • Christian Krämer

    Supervisory Board Vice Chairman

    • Tenure: 0yrs
  • Marianne Loner

    Supervisory Board Member

    • Tenure: 2.6yrs

Company Information

ProCredit Holding AG & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ProCredit Holding AG & Co. KGaA
  • Ticker: PCZ
  • Exchange: XTRA
  • Founded: 1998
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €418.179m
  • Shares outstanding: 58.90m
  • Website: https://www.procredit-holding.com

Number of Employees


Location

  • ProCredit Holding AG & Co. KGaA
  • Rohmerplatz 33-37
  • Frankfurt am Main
  • Hessen
  • 60486
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2016
0RL9LSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2016
PCZXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURDec 2016

Biography

ProCredit Holding AG & Co. KGaA, through its subsidiaries, operates as a development-oriented commercial banking company that offers various financial services to small and medium businesses, and private i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:01
End of Day Share Price2019/12/10 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.