Adler Group (XTRA:ADJ) - Share price, News & Analysis

ADJ fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	0/6
Financial Health	1/6
Dividends	2/6

ADJ Stock Overview

Adler Group S.A., together with its subsidiaries, operates as a residential real estate company in Germany.

Rewards

Trading at 11.4% below our estimate of its fair value

Earnings are forecast to grow 134.49% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 8.27% is not well covered by earnings or forecast to be in the next 3 years

Highly volatile share price over the past 3 months

Shareholders have been diluted in the past year

Adler Group Competitors

Vonovia

XTRA:VNA

€25.8b

Deutsche Wohnen

XTRA:DWNI

€10.2b

LEG Immobilien

XTRA:LEG

€6.9b

Aroundtown

XTRA:AT1

€5.1b

Price History & Performance

Summary of all time highs, changes and price drops for Adler Group
Historical stock prices
Current Share Price	€5.56
52 Week High	€27.74
52 Week Low	€3.88
Beta	1.23
1 Month Change	-50.71%
3 Month Change	-44.15%
1 Year Change	-76.46%
3 Year Change	-88.68%
5 Year Change	-84.99%
Change since IPO	-71.49%

Recent News & Updates

May 04

Is Adler Group (ETR:ADJ) Weighed On By Its Debt Load?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	ADJ	DE Real Estate	DE Market
7D	-1.0%	-0.8%	1.2%
1Y	-76.5%	-27.1%	-12.2%

Return vs Industry: ADJ underperformed the German Real Estate industry which returned -27.1% over the past year.

Return vs Market: ADJ underperformed the German Market which returned -12.2% over the past year.

Price Volatility

Is ADJ's price volatile compared to industry and market?
ADJ volatility
ADJ Average Weekly Movement	17.6%
Real Estate Industry Average Movement	5.0%
Market Average Movement	6.4%
10% most volatile stocks in DE Market	10.7%
10% least volatile stocks in DE Market	3.5%

Stable Share Price: ADJ is more volatile than 90% of German stocks over the past 3 months, typically moving +/- 18% a week.

Volatility Over Time: ADJ's weekly volatility (18%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

Founded	Employees	CEO	Website
2006	1,329	Thierry Beaudemoulin	https://ir.adler-group.com

Adler Group S.A., together with its subsidiaries, operates as a residential real estate company in Germany. It operates through Residential Property Management and Privatization segments. The company is involved in the rental and management of residential properties, including modernization and maintenance of residential properties, management of tenancy agreements, and marketing of residential units.

Adler Group Fundamentals Summary

How do Adler Group's earnings and revenue compare to its market cap?
ADJ fundamental statistics
Market Cap	€653.36m
Earnings (TTM)	-€1.18b
Revenue (TTM)	€1.14b

0.6x

P/S Ratio

-0.6x

P/E Ratio

Is ADJ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADJ income statement (TTM)
Revenue	€1.14b
Cost of Revenue	€1.13b
Gross Profit	€12.53m
Other Expenses	€1.19b
Earnings	-€1.18b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 31, 2022

Earnings per share (EPS)	-10.02
Gross Margin	1.09%
Net Profit Margin	-102.86%
Debt/Equity Ratio	190.1%

How did ADJ perform over the long term?

See historical performance and comparison

Dividends

8.3%

Current Dividend Yield

-5%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

11.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ADJ (€5.56) is trading below our estimate of fair value (€6.28)

Significantly Below Fair Value: ADJ is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: ADJ is unprofitable, so we can't compare its PE Ratio to the German Real Estate industry average.

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

Price to Book Ratio

PB vs Industry: ADJ is good value based on its PB Ratio (0.2x) compared to the DE Real Estate industry average (1x).

Future Growth

How is Adler Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

134.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADJ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.05%).

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

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

Revenue vs Market: Insufficient data to determine if ADJ's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if ADJ's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ADJ's Return on Equity is forecast to be low in 3 years time (2.6%).

Past Performance

How has Adler Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-19.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ADJ is currently unprofitable.

Growing Profit Margin: ADJ is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ADJ is unprofitable, and losses have increased over the past 5 years at a rate of 19.2% per year.

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

Earnings vs Industry: ADJ is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (6.9%).

Return on Equity

High ROE: ADJ has a negative Return on Equity (-31.54%), as it is currently unprofitable.

Financial Health

How is Adler Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ADJ's short term assets (€5.5B) exceed its short term liabilities (€2.2B).

Long Term Liabilities: ADJ's short term assets (€5.5B) do not cover its long term liabilities (€7.2B).

Debt to Equity History and Analysis

Debt Level: ADJ's net debt to equity ratio (175.1%) is considered high.

Reducing Debt: ADJ's debt to equity ratio has increased from 61.8% to 190.1% over the past 5 years.

Debt Coverage: ADJ's operating cash flow is negative, therefore debt is not well covered.

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

Balance Sheet

Dividend

What is Adler Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

8.27%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ADJ's dividend (8.27%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: ADJ's dividend (8.27%) is in the top 25% of dividend payers in the German market (4.29%)

Stability and Growth of Payments

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

Growing Dividend: ADJ's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: ADJ is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: ADJ is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Real Estate industry.

Management

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

0.5yrs

Average management tenure

CEO

Thierry Beaudemoulin (50 yo)

0.33

Tenure

€1,270,706

Compensation

Mr. Thierry Jean-Francois Beaudemoulin has been Chief Executive Officer of Brack Capital Properties NV since December 1, 2020. He is CEO & Director of A.D.O. Group Ltd.Mr. Beaudemoulin serves as Member of...

CEO Compensation Analysis

Compensation vs Market: Thierry's total compensation ($USD1.32M) is about average for companies of similar size in the German market ($USD1.20M).

Compensation vs Earnings: Thierry's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: ADJ's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: ADJ's board of directors are not considered experienced ( 1.7 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 been diluted in the past year, with total shares outstanding growing by 14.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31