XTRA:GLJ

Stock Analysis Report

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Executive Summary

Grenke AG, together with its subsidiaries, provides a range of banking and financial services to small and medium-sized (SME) enterprises in Germany, France, Italy, and internationally. More Details


Snowflake Analysis

Established dividend payer and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GLJ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

GLJ

-3.1%

DE Diversified Financial

-3.2%

DE Market


1 Year Return

-61.0%

GLJ

-12.5%

DE Diversified Financial

0.2%

DE Market

Return vs Industry: GLJ underperformed the German Diversified Financial industry which returned -7.8% over the past year.

Return vs Market: GLJ underperformed the German Market which returned 1.7% over the past year.


Shareholder returns

GLJIndustryMarket
7 Day-3.4%-3.1%-3.2%
30 Day11.5%14.1%1.0%
90 Day-52.6%-14.6%-2.9%
1 Year-60.6%-61.0%-11.8%-12.5%3.4%0.2%
3 Year-58.4%-59.5%10.6%7.9%1.0%-7.8%
5 Year-34.4%-36.9%81.1%74.2%21.1%3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GLJ (€34.46) is trading above our estimate of fair value (€23.46)

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


Price To Earnings Ratio

PE vs Industry: GLJ is good value based on its PE Ratio (15.3x) compared to the DE Diversified Financial industry average (33.2x).

PE vs Market: GLJ is good value based on its PE Ratio (15.3x) compared to the German market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: GLJ is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: GLJ is good value based on its PB Ratio (1.3x) compared to the DE Diversified Financial industry average (6.8x).


Next Steps

Future Growth

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

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLJ's forecast earnings growth (28.3% per year) is above the savings rate (0.2%).

Earnings vs Market: GLJ's earnings (28.3% per year) are forecast to grow faster than the German market (26.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GLJ's revenue (10.5% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: GLJ's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GLJ's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Grenke performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLJ has high quality earnings.

Growing Profit Margin: GLJ's current net profit margins (19.4%) are lower than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: GLJ's earnings have grown by 10.2% per year over the past 5 years.

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

Earnings vs Industry: GLJ had negative earnings growth (-19.3%) over the past year, making it difficult to compare to the Diversified Financial industry average (-3.5%).


Return on Equity

High ROE: GLJ's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Grenke's financial position?


Financial Position Analysis

Short Term Liabilities: GLJ's short term assets (€7.0B) exceed its short term liabilities (€2.8B).

Long Term Liabilities: GLJ's short term assets (€7.0B) exceed its long term liabilities (€3.6B).


Debt to Equity History and Analysis

Debt Level: GLJ's debt to equity ratio (377.8%) is considered high.

Reducing Debt: GLJ's debt to equity ratio has reduced from 411.3% to 377.8% over the past 5 years.

Debt Coverage: GLJ's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: Insufficient data to determine if GLJ's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

2.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GLJ's dividend (2.32%) is higher than the bottom 25% of dividend payers in the German market (1.2%).

High Dividend: GLJ's dividend (2.32%) is low compared to the top 25% of dividend payers in the German market (3.73%).


Stability and Growth of Payments

Stable Dividend: GLJ's dividends per share have been stable in the past 10 years.

Growing Dividend: GLJ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), GLJ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GLJ's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

5.4yrs

Average board tenure


CEO

Antje Leminsky (49 yo)

2.58yrs

Tenure

€845,931

Compensation

Ms. Antje Leminsky is Chairman of the Management Board at GRENKE AG since March 1, 2018 and has been its Chief Executive Officer since March 1, 2018. Ms. Leminsky was the Deputy Chairman of the Board of Di ...


CEO Compensation Analysis

Compensation vs Market: Antje's total compensation ($USD1.00M) is below average for companies of similar size in the German market ($USD1.55M).

Compensation vs Earnings: Antje's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Wolfgang Grenke
Founder & Deputy Chairman of Supervisory Board (Suspended)2.42yrs€78.17k40.66%
€ 651.5m
Ernst-Moritz Lipp
Chairman of the Supervisory Board15.25yrs€90.20kno data
Florian Schulte
Member of Supervisory Board10.42yrs€58.43kno data
Ljiljana Mitic
Member of Supervisory Board5.42yrs€49.54kno data
Claudia Krcmar
Member of Supervisory Board1.42yrs€32.42kno data
Jens Rönnberg
Interim Deputy Chairman of the Supervisory Boardno data€8.00kno data

5.4yrs

Average Tenure

57yo

Average Age

Experienced Board: GLJ's board of directors are considered experienced (5.4 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

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


Key Information

  • Name: Grenke AG
  • Ticker: GLJ
  • Exchange: XTRA
  • Founded: 1978
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: €1.602b
  • Shares outstanding: 46.50m
  • Website: https://www.grenke.de

Number of Employees


Location

  • Grenke AG
  • Neuer Markt 2
  • Baden-Baden
  • Baden-Württemberg
  • 76532
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLJDBATS-CHIXE (BATS 'Chi-X Europe')Bearer SharesGBEURApr 2000
GLJDB (Deutsche Boerse AG)YesRegistered SharesDEEURApr 2000
GLJXTRA (XETRA Trading Platform)YesRegistered SharesDEEURApr 2000
GLJWBAG (Wiener Boerse AG)YesRegistered SharesATEURApr 2000
GKSG.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDApr 2000
0R97LSE (London Stock Exchange)YesRegistered SharesGBEURApr 2000

Biography

Grenke AG, together with its subsidiaries, provides a range of banking and financial services to small and medium-sized (SME) enterprises in Germany, France, Italy, and internationally. It operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:34
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.