LSE:0RL9

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.


Snowflake Analysis

Undervalued with adequate balance sheet.


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: 0RL9's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

0RL9

-14.8%

GB Banks

-2.2%

GB Market


1 Year Return

n/a

0RL9

-45.4%

GB Banks

-25.9%

GB Market

Return vs Industry: Insufficient data to determine how 0RL9 performed against the UK Banks industry.

Return vs Market: Insufficient data to determine how 0RL9 performed against the UK Market.


Shareholder returns

0RL9IndustryMarket
7 Day-1.9%-14.8%-2.2%
30 Day-23.5%-31.0%-21.7%
90 Dayn/a-44.2%-29.6%
1 Yearn/a-43.4%-45.4%-22.2%-25.9%
3 Yearn/a-42.9%-49.1%-16.1%-26.6%
5 Yearn/a-43.0%-53.2%-4.6%-26.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0RL9 (€5.2) is trading below our estimate of fair value (€14.63)

Significantly Below Fair Value: 0RL9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0RL9 is poor value based on its PE Ratio (5.1x) compared to the Banks industry average (4.3x).

PE vs Market: 0RL9 is good value based on its PE Ratio (5.1x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: 0RL9 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 0RL9 is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.4x).


Next Steps

Future Growth

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

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RL9's forecast earnings growth (5.6% per year) is above the savings rate (0.5%).

Earnings vs Market: 0RL9's earnings (5.6% per year) are forecast to grow slower than the UK market (15.3% per year).

High Growth Earnings: 0RL9's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0RL9's revenue (3.7% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: 0RL9's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RL9's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0RL9 has a high level of non-cash earnings.

Growing Profit Margin: 0RL9's current net profit margins (23.7%) are lower than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: 0RL9's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 0RL9's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0RL9 had negative earnings growth (-0.2%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: 0RL9's Return on Equity (7.7%) is considered low.


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: 0RL9 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0RL9's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: 0RL9's level of assets compared to its equity is low.

Allowance for Bad Loans: 0RL9 has a low allowance for bad loans.

Low Risk Liabilities: 0RL9's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0RL9 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0RL9's loans are broadly funded by customer deposits.

Level of Bad Loans: 0RL9 has a high level of bad loans (2.4%)


Next Steps

Dividend

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

5.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0RL9's dividend (5.83%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).

High Dividend: 0RL9's dividend (5.83%) is low compared to the top 25% of dividend payers in the UK market (7.57%).


Stability and Growth of Payments

Stable Dividend: 0RL9 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0RL9 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 (29.5%), 0RL9's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0RL9's dividends in 3 years are forecast to be well covered by earnings (33.8% payout ratio).


Next Steps

Management

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

4.8yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Rainer Ottenstein
Supervisory Board Member3.42yrsno datano data
Claus-Peter Zeitinger
Supervisory Board Chairmanno datano datano data
Jasper Snoek
Supervisory Board Member13.25yrsno datano data
Petar Slavov
Member of Supervisory Board6.25yrsno datano data
Christian Krämer
Supervisory Board Vice Chairmanno datano datano data
Marianne Loner
Supervisory Board Member2.92yrsno datano data

4.8yrs

Average Tenure

Experienced Board: 0RL9's board of directors are considered experienced (4.8 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

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


Key Information

  • Name: ProCredit Holding AG & Co. KGaA
  • Ticker: 0RL9
  • Exchange: LSE
  • Founded: 1998
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €303.327m
  • 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 individuals in Germany, Eastern Europe, South Eastern Europe, and South America. The company provides account services, such as e-banking, cards, domestic and international payments, and transactions; advice on liquidity management or accounting and reporting; payroll services, documentary business, and trade finance; savings and personal banking services; overdrafts; and housing and housing improvement loans. The company was formerly known as Internationale Micro Investitionen AG. ProCredit Holding AG & Co. KGaA was founded in 1998 and is based in Frankfurt am Main, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 01:32
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.