LEG Immobilien (XTRA:LEG) - Share price, News & Analysis

LEG fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	3/6
Dividends	4/6

LEG Stock Overview

LEG Immobilien AG, together with its subsidiaries, operates as an integrated property company in Germany.

Rewards

Trading at 23.5% below our estimate of its fair value

Earnings grew by 23.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 21.5% per year for the next 3 years

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

LEG Immobilien Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LEG Immobilien
Historical stock prices
Current Share Price	€84.66
52 Week High	€139.80
52 Week Low	€76.16
Beta	0.41
1 Month Change	-10.17%
3 Month Change	-18.87%
1 Year Change	-31.73%
3 Year Change	-14.66%
5 Year Change	2.86%
Change since IPO	92.41%

Shareholder Returns

	LEG	DE Real Estate	DE Market
7D	5.0%	0.9%	-0.1%
1Y	-31.7%	-37.7%	-22.0%

Return vs Industry: LEG exceeded the German Real Estate industry which returned -37.4% over the past year.

Return vs Market: LEG underperformed the German Market which returned -22% over the past year.

Price Volatility

Is LEG's price volatile compared to industry and market?
LEG volatility
LEG Average Weekly Movement	5.3%
Real Estate Industry Average Movement	5.2%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.2%
10% least volatile stocks in DE Market	2.9%

Stable Share Price: LEG is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LEG's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1970	1,770	Lars von Lackum	https://www.leg-wohnen.de/unternehmen

LEG Immobilien AG, together with its subsidiaries, operates as an integrated property company in Germany. The company engages in the performance of services and management of equity investments; property management and location development; performance of services for third parties and housing industry services; and generation of electricity and heat. It also provides IT and management services for third-party.

LEG Immobilien Fundamentals Summary

How do LEG Immobilien's earnings and revenue compare to its market cap?
LEG fundamental statistics
Market Cap	€6.17b
Earnings (TTM)	€1.75b
Revenue (TTM)	€1.06b

3.5x

P/E Ratio

5.8x

P/S Ratio

Is LEG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LEG income statement (TTM)
Revenue	€1.06b
Cost of Revenue	€507.10m
Gross Profit	€556.70m
Other Expenses	-€1.19b
Earnings	€1.75b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	24.05
Gross Margin	52.33%
Net Profit Margin	164.66%
Debt/Equity Ratio	98.0%

How did LEG perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

17%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is LEG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LEG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LEG. This is calculated by dividing LEG's market cap by their current preferred multiple.
What is LEG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€6.17b

LEG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	13.9x
Enterprise Value/EBITDA	28.2x
PEG Ratio	-0.2x

Price to Earnings Ratio vs Peers

How does LEG's PE Ratio compare to its peers?

LEG PE Ratio vs Peers

The above table shows the PE ratio for LEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.5x

Forward PE

Price-To-Earnings vs Peers: LEG is good value based on its Price-To-Earnings Ratio (3.5x) compared to the peer average (8.5x).

Price to Earnings Ratio vs Industry

How does LEG's PE Ratio compare vs other companies in the German Real Estate Industry?

Price-To-Earnings vs Industry: LEG is good value based on its Price-To-Earnings Ratio (3.5x) compared to the German Real Estate industry average (12.6x)

Price to Earnings Ratio vs Fair Ratio

What is LEG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LEG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.5x
Fair PE Ratio	9x

Price-To-Earnings vs Fair Ratio: LEG is good value based on its Price-To-Earnings Ratio (3.5x) compared to the estimated Fair Price-To-Earnings Ratio (9x).

Share Price vs Fair Value

What is the Fair Price of LEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LEG (€84.66) is trading below our estimate of fair value (€110.63)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

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

-21.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEG's earnings are forecast to decline over the next 3 years (-21.5% per year).

Earnings vs Market: LEG's earnings are forecast to decline over the next 3 years (-21.5% per year).

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

Revenue vs Market: LEG's revenue (2.9% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: LEG's revenue (2.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LEG's Return on Equity is forecast to be low in 3 years time (4.3%).

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Past Performance

How has LEG Immobilien performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

18.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LEG has a large one-off gain of €1.8B impacting its March 31 2022 financial results.

Growing Profit Margin: LEG's current net profit margins are higher than last year .

Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: LEG's earnings growth over the past year (23.4%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: LEG earnings growth over the past year (23.4%) exceeded the Real Estate industry 11.5%.

Return on Equity

High ROE: LEG's Return on Equity (19.2%) is considered low.

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Financial Health

How is LEG Immobilien's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: LEG's short term assets (€681.9M) exceed its short term liabilities (€611.9M).

Long Term Liabilities: LEG's short term assets (€681.9M) do not cover its long term liabilities (€11.1B).

Debt to Equity History and Analysis

Debt Level: LEG's net debt to equity ratio (92.6%) is considered high.

Reducing Debt: LEG's debt to equity ratio has reduced from 112.4% to 98% over the past 5 years.

Debt Coverage: LEG's debt is not well covered by operating cash flow (4.1%).

Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (5.9x coverage).

Balance Sheet

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Dividend

What is LEG Immobilien current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

4.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LEG's dividend (4.81%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: LEG's dividend (4.81%) is in the top 25% of dividend payers in the German market (4.53%)

Stability and Growth of Payments

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

Growing Dividend: LEG's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.9%), LEG's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (79.8%), LEG's dividend payments are covered by cash flows.

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Management

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

3.0yrs

Average management tenure

CEO

Lars von Lackum (46 yo)

3.42yrs

Tenure

€1,983,000

Compensation

Mr. Lars von Lackum has been Chief Executive Officer at LEG Immobilien AG since June 1, 2019 and is its Member of Management Board since 2019 and also served as its Chief Financial Officer until June 30, 2...

CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD2.09M) is about average for companies of similar size in the German market ($USD2.88M).

Compensation vs Earnings: Lars's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: LEG's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: LEG's board of directors are considered experienced (3.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31