XTRA:WUW

Stock Analysis Report

Wüstenrot & Württembergische

Executive Summary

Wüstenrot & Württembergische AG, together with its subsidiaries, provides banking and insurance products and services to private individuals and businesses in Germany, the Czech Republic, and internationally.

Rewards

Trading at 49% below its fair value

Earnings are forecast to grow 1.05% per year

Earnings grew by 21.2% over the past year

Pays a high and reliable dividend of 3.37%

Risk Analysis

No risks detected for WUW from our risk checks.


Snowflake Analysis

Undervalued established dividend payer.

Share Price & News

How has Wüstenrot & Württembergische's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

WUW

0.4%

DE Insurance

0.07%

DE Market


1 Year Return

17.9%

WUW

27.1%

DE Insurance

14.8%

DE Market

Return vs Industry: WUW underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: WUW exceeded the German Market which returned 16.8% over the past year.


Shareholder returns

WUWIndustryMarket
7 Day-0.2%0.4%0.07%
30 Day-2.7%0.8%1.9%
90 Day7.4%4.5%7.1%
1 Year22.1%17.9%32.7%27.1%18.4%14.8%
3 Year13.5%2.6%64.7%44.8%17.4%7.0%
5 Year30.6%10.9%95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wüstenrot & Württembergische undervalued compared to its fair value and its price relative to the market?

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WUW (€19.3) is trading below our estimate of fair value (€37.82)

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


Price To Earnings Ratio

PE vs Industry: WUW is good value based on its PE Ratio (6.9x) compared to the Insurance industry average (11.9x).

PE vs Market: WUW is good value based on its PE Ratio (6.9x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: WUW is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: WUW is good value based on its PB Ratio (0.4x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Wüstenrot & Württembergische forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WUW's forecast earnings growth (1% per year) is above the savings rate (-0.4%).

Earnings vs Market: WUW's earnings (1% per year) are forecast to grow slower than the German market (13.2% per year).

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

Revenue vs Market: WUW's revenue is expected to decline over the next 3 years (-8.7% per year).

High Growth Revenue: WUW's revenue is forecast to decline over the next 3 years (-8.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WUW's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Wüstenrot & Württembergische performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WUW has high quality earnings.

Growing Profit Margin: WUW's current net profit margins (3.7%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: WUW's earnings have declined by -0.2% per year over the past 5 years.

Accelerating Growth: WUW's earnings growth over the past year (21.2%) exceeds its 5-year average (-0.2% per year).

Earnings vs Industry: WUW earnings growth over the past year (21.2%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: WUW's Return on Equity (5.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wüstenrot & Württembergische'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: WUW has a low level of unsold assets or inventory.

Debt Coverage by Assets: WUW's debt is covered by short term assets (assets are 10.8x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: Insufficient data to determine if WUW has a sufficient allowance for bad loans.

Low Risk Liabilities: WUW reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if WUW has an acceptable proportion of non-loan assets held.

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

Level of Bad Loans: Insufficient data to determine if WUW has an appropriate level of bad loans.


Next Steps

Dividend

What is Wüstenrot & Württembergische's current dividend yield, its reliability and sustainability?

3.38%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: WUW's dividend (3.37%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: WUW's dividend (3.37%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.4%), WUW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WUW's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

What is the CEO of Wüstenrot & Württembergische's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Jürgen Junker (50yo)

3yrs

Tenure

€1,548,400

Compensation

Mr. Jürgen Albert Junker served as Supervisory Board Chairman and Member of Supervisory Board at Wüstenrot Bank AG Pfandbriefbank since January 01, 2017 until 2019. He serves as Supervisory Board Chairman  ...


CEO Compensation Analysis

Compensation vs Market: Jürgen's total compensation ($USD1.72M) is about average for companies of similar size in the German market ($USD1.50M).

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


Management Age and Tenure

5.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: WUW's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

61yo

Average Age

Experienced Board: WUW's board of directors are considered experienced (8.6 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

  • Michael Gutjahr (62yo)

    Labor Director

    • Tenure: 5.8yrs
    • Compensation: €722.60k
  • Frank Weber

    Deputy Chairman of the Supervisory Board

    • Tenure: 8.6yrs
    • Compensation: €77.80k
  • Matthias Schell

    Head of Group Accounting

    • Compensation: €12.00k
  • Jens Wieland (53yo)

    Chief Information Officer

    • Tenure: 7.5yrs
    • Compensation: €787.20k
  • Jürgen Steffan (58yo)

    Chief Risk Officer & Member of Management Board

    • Tenure: 1.5yrs
  • Susanne Pauser

    Chief Human Resources Officer

    • Tenure: 5.8yrs
  • Jürgen Junker (50yo)

    Chairman of the Management Board & CEO

    • Tenure: 3yrs
    • Compensation: €1.55m
  • Michael Ellwanger

    Head of Investor Relations

    • Margret Obladen

      Head of Group Law


      Board Members

      • Reiner Hagemann (72yo)

        Supervisory Board Member

        • Tenure: 13.6yrs
        • Compensation: €39.00k
      • Hans Sauer (78yo)

        Supervisory Board Chairman

        • Tenure: 14.6yrs
        • Compensation: €112.50k
      • Marika Lulay (57yo)

        Supervisory Board Member

        • Tenure: 3.6yrs
        • Compensation: €29.20k
      • Corinna Linner (61yo)

        Supervisory Board Member

        • Tenure: 4.6yrs
        • Compensation: €47.00k
      • Peter Buschbeck (58yo)

        Supervisory Board Member

        • Tenure: 5.7yrs
        • Compensation: €35.00k
      • Frank Weber

        Deputy Chairman of the Supervisory Board

        • Tenure: 8.6yrs
        • Compensation: €77.80k
      • Ute Hobinka

        Supervisory Board Member

        • Tenure: 8.6yrs
        • Compensation: €35.00k
      • Jochen Höpken

        Supervisory Board Member

        • Tenure: 8.6yrs
        • Compensation: €30.00k
      • Christoph Seeger

        Supervisory Board Member

        • Tenure: 8.6yrs
        • Compensation: €65.00k
      • Andreas Rothbauer

        Supervisory Board Member

        • Tenure: 9yrs
        • Compensation: €59.00k

      Company Information

      Wüstenrot & Württembergische AG's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Wüstenrot & Württembergische AG
      • Ticker: WUW
      • Exchange: XTRA
      • Founded: 1828
      • Industry: Life and Health Insurance
      • Sector: Insurance
      • Market Cap: €1.801b
      • Shares outstanding: 93.62m
      • Website: https://www.ww-ag.com

      Number of Employees


      Location

      • Wüstenrot & Württembergische AG
      • Gutenbergstrasse 30
      • Stuttgart
      • Baden-Württemberg
      • 70176
      • Germany

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      WUWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1999
      WUWXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURSep 1999
      0GJNLSE (London Stock Exchange)YesOrdinary SharesGBEURSep 1999
      WUWSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFSep 1999
      WUWWBAG (Wiener Boerse AG)YesOrdinary SharesATEURSep 1999
      WUWdBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURSep 1999
      WUWETLX (Eurotlx)YesOrdinary SharesITEURSep 1999

      Biography

      Wüstenrot & Württembergische AG, together with its subsidiaries, provides banking and insurance products and services to private individuals and businesses in Germany, the Czech Republic, and internationally. It operates through Home Loan and Savings Bank, Life and Health Insurance, and Property/Casualty Insurance segments. The Home Loan and Savings Bank segment offers home loan savings and banking products primarily for private customers, such as home loan savings contracts, bridging loans, savings and investment products, current accounts, call money accounts, Maestro and credit cards, and mortgage and bank loans. The Life and Health Insurance segment provides life and health insurance products for individuals and groups, including classic and unit-linked life and annuity insurance, term insurance, classic and unit-linked Riester and basic pensions, and occupational disability insurance, as well as full and supplementary private health insurance and nursing care insurance. The Property/Casualty Insurance segment provides a range of insurance products for private and corporate customers, including general liability, casualty, motor, household, residential building, legal protection, transport, and technical insurance. It also engages in the property development; and provision of asset management services. The company distributes its products and services directly, as well as through partners, brokers, and in-house mobile sales force. The company was founded in 1828 and is headquartered in Stuttgart, Germany. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 20:57
      End of Day Share Price2020/01/17 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.