LSE:0RLW

Stock Analysis Report

Executive Summary

Commerzbank Aktiengesellschaft provides banking and capital market services to private and small business customers, corporate clients, multinationals, financial service providers, and institutional clients worldwide.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0RLW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

0RLW

-8.5%

GB Banks

3.9%

GB Market


1 Year Return

-53.9%

0RLW

-38.0%

GB Banks

-22.4%

GB Market

Return vs Industry: 0RLW underperformed the UK Banks industry which returned -35.7% over the past year.

Return vs Market: 0RLW underperformed the UK Market which returned -23% over the past year.


Shareholder returns

0RLWIndustryMarket
7 Day-4.6%-8.5%3.9%
30 Day-36.6%-24.2%-16.1%
90 Day-41.0%-36.7%-26.1%
1 Year-52.5%-53.9%-33.7%-38.0%-18.2%-22.4%
3 Year-58.8%-59.9%-33.8%-42.9%-11.7%-23.1%
5 Year-73.7%-75.0%-32.7%-46.2%1.9%-21.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Commerzbank 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: 0RLW (€3.34) is trading below our estimate of fair value (€8.03)

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


Price To Earnings Ratio

PE vs Industry: 0RLW is poor value based on its PE Ratio (6.3x) compared to the Banks industry average (4.5x).

PE vs Market: 0RLW is good value based on its PE Ratio (6.3x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: 0RLW is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 0RLW is good value based on its PB Ratio (0.1x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is Commerzbank forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RLW's forecast earnings growth (13% per year) is above the savings rate (0.5%).

Earnings vs Market: 0RLW's earnings (13% per year) are forecast to grow slower than the UK market (15.5% per year).

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

Revenue vs Market: 0RLW's revenue (0.2% per year) is forecast to grow slower than the UK market (2.3% per year).

High Growth Revenue: 0RLW's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RLW's Return on Equity is forecast to be low in 3 years time (3.2%).


Next Steps

Past Performance

How has Commerzbank performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: 0RLW's current net profit margins (8.1%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: 0RLW's earnings have grown by 6% per year over the past 5 years.

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

Earnings vs Industry: 0RLW had negative earnings growth (-24.1%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: 0RLW's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Commerzbank'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: 0RLW has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0RLW's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: 0RLW's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: 0RLW has an appropriate level of bad loans (1.42%)


Next Steps

Dividend

What is Commerzbank's current dividend yield, its reliability and sustainability?

4.53%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0RLW's dividend (4.49%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: 0RLW's dividend (4.49%) is low compared to the top 25% of dividend payers in the UK market (7.48%).


Stability and Growth of Payments

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

Growing Dividend: 0RLW has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.4%), 0RLW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0RLW's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Martin Zielke (56yo)

3.83s

Tenure

€4,357,000

Compensation

Mr. Martin Zielke has been the Chief Executive Officer of Commerzbank AG since May 1, 2016 and has been its Chairman of Board of Managing Directors since May 1, 2016. Mr. Zielke has been the Head of Group  ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD4.81M) is above average for companies of similar size in the UK market ($USD2.45M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Zielke
Chairman of Board of Managing Directors3.83yrs€4.36mno data
Bettina Orlopp
CFO & Member of the Board of Managing Directors0.17yr€2.56mno data
Ralph Mandel
Member of the Board of Managing Directors3.83yrs€2.65mno data
Stephan Engels
Member of the Board of Managing Directors7.83yrs€3.30mno data
Marcus Chromik
Chief Risk Officer & Member of the Board of Managing Directors4.17yrs€2.90mno data
Jörg Hessenmüller
COO & Member of the Board of Managing Directors1.17yrs€2.44mno data
Roland Boekhout
Member of the Board of Managing Directors0.17yrno datano data
Sabine Schmittroth
Head of HR0.17yrno datano data
Christoph Wortig
Head of Investor Relationsno datano datano data
Toufic Yafoui
Head of Fixed Income Sales - Middle Eastno datano datano data

2.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 0RLW's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Klaus-Peter Müller
Honorary Chairman of Supervisory Board1.83yrs€379.50kno data
Wendelin Wiedeking
Member of Central Advisory Boardno datano datano data
Uwe Lüders
Member of the Central Advisory Boardno datano datano data
Uwe Tschäge
Supervisory Board Deputy Chairman - Elected by Employees16.83yrs€248.50kno data
Nicholas Teller
Independent Supervisory Board Member5.83yrs€192.80kno data
Tobias Guldimann
Independent Supervisory Board Member2.83yrs€205.80kno data
Ernst Friedrich Schröder
Member of Central Advisory Boardno datano datano data
Friedrich Lürßen
Member of Central Advisory Boardno data€28.60kno data
Cathrina Claas-Mühlhäuser
Member of Central Advisory Boardno datano datano data
Stefan Josef Peter Schmittmann
Independent Supervisory Board Chairman1.83yrs€391.50kno data

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 0RLW's board of directors are not considered experienced ( 2.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Commerzbank AG
  • Ticker: 0RLW
  • Exchange: LSE
  • Founded: 1870
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €4.143b
  • Shares outstanding: 1.25b
  • Website: https://www.commerzbank.com

Number of Employees


Location

  • Commerzbank AG
  • Kaiserplatz
  • Frankfurt am Main
  • Hessen
  • 60261
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CB59J9BST (Boerse-Stuttgart)11% RVCV 15/01/2009 EUR1000 (BASKET)DEEURNo data
CB59J8BST (Boerse-Stuttgart)13% RVCV 15/01/2009 EUR1000 (BASKET)DEEURNo data
CB59J7BST (Boerse-Stuttgart)12.5% RVCV 15/01/2009 EUR1000 (BASKET)DEEURNo data
CB59J5BST (Boerse-Stuttgart)11% RVCV 15/01/2009 EUR1000 (BASKET)DEEURNo data
CB00Z9BST (Boerse-Stuttgart)14% RVCV 15/01/2009 EUR1000 (ADID/TUI)DEEURNo data
CB00PSBST (Boerse-Stuttgart)16.5% RVCV 08/04/2009 EUR1000(LEONI)DEEURNo data
CB00PRBST (Boerse-Stuttgart)17% RVCV 08/04/2009 EUR1000(LANXE)DEEURNo data
CB00PQBST (Boerse-Stuttgart)17% RVCV 08/04/2009 EUR1000(KUKA)DEEURNo data
CB00PPBST (Boerse-Stuttgart)14.5% RVCV 08/04/2009 EUR1000(KRONE)DEEURNo data
CB00PNBST (Boerse-Stuttgart)22.5% RVCV 08/04/2009 EUR1000(KLOEC)DEEURNo data
CB00PMBST (Boerse-Stuttgart)21% RVCV 08/04/2009 EUR1000(K+S)DEEURNo data
CB00PLBST (Boerse-Stuttgart)19% RVCV 08/04/2009 EUR1000(IVG)DEEURNo data
CB00PKBST (Boerse-Stuttgart)21% RVCV 08/04/2009 EUR1000(HUGO)DEEURNo data
CB00PJBST (Boerse-Stuttgart)20.5% RVCV 08/04/2009 EUR1000(HOCHT)DEEURNo data
CB00PHBST (Boerse-Stuttgart)11% RVCV 08/04/2009 EUR1000(HEIDE)DEEURNo data
CB00PGBST (Boerse-Stuttgart)23.5% RVCV 08/04/2009 EUR1000(HEIDE)DEEURNo data
CB00PFBST (Boerse-Stuttgart)17% RVCV 08/04/2009 EUR1000(HANNO)DEEURNo data
CB00PEBST (Boerse-Stuttgart)16.5% RVCV 08/04/2009 EUR1000(HAMBU)DEEURNo data
CB00PDBST (Boerse-Stuttgart)25.5% RVCV 08/04/2009 EUR1000(GILDE)DEEURNo data
CB00PCBST (Boerse-Stuttgart)20.5% RVCV 08/04/2009 EUR1000(GEA G)DEEURNo data
CB00PBBST (Boerse-Stuttgart)18% RVCV 08/04/2009 EUR1000(GAGFA)DEEURNo data
CB00PABST (Boerse-Stuttgart)15% RVCV 08/04/2009 EUR1000(FRESE)DEEURNo data
CB00P8BST (Boerse-Stuttgart)17% RVCV 08/04/2009 EUR1000(WINCO)DEEURNo data
CB00P7BST (Boerse-Stuttgart)21.5% RVCV 08/04/2009 EUR1000(WACKE)DEEURNo data
CB00P6BST (Boerse-Stuttgart)16% RVCV 08/04/2009 EUR1000(VOSSL)DEEURNo data
CB00P5BST (Boerse-Stuttgart)18% RVCV 08/04/2009 EUR1000(TOGNU)DEEURNo data
CB00PZBST (Boerse-Stuttgart)13.5% RVCV 08/04/2009 EUR1000(RHOEN)DEEURNo data
CB00PYBST (Boerse-Stuttgart)18.5% RVCV 08/04/2009 EUR1000(RHEIN)DEEURNo data
CB00PXBST (Boerse-Stuttgart)24% RVCV 08/04/2009 EUR1000(PROSI)DEEURNo data
CB00PWBST (Boerse-Stuttgart)22.5% RVCV 08/04/2009 EUR1000(PREMI)DEEURNo data
CB00PVBST (Boerse-Stuttgart)16.5% RVCV 08/04/2009 EUR1000(PRAKT)DEEURNo data
CB00PUBST (Boerse-Stuttgart)21% RVCV 08/04/2009 EUR1000(PFLEI)DEEURNo data
CB00PTBST (Boerse-Stuttgart)17% RVCV 08/04/2009 EUR1000(MTU A)DEEURNo data
CB00DUBST (Boerse-Stuttgart)17.5% RVCV 08/04/2009 EUR1000(CELES)DEEURNo data
CB00DTBST (Boerse-Stuttgart)19% RVCV 08/04/2009 EUR1000(BILFI)DEEURNo data
CB00DSBST (Boerse-Stuttgart)12.5% RVCV 08/04/2009 EUR1000(BEIER)DEEURNo data
CB00DRBST (Boerse-Stuttgart)28% RVCV 08/04/2009 EUR1000(ARQUE)DEEURNo data
CB00DQBST (Boerse-Stuttgart)21% RVCV 08/04/2009 EUR1000(ARCAN)DEEURNo data
CB00DPBST (Boerse-Stuttgart)9.5% RVCV 08/04/2009 EUR1000(AMB G)DEEURNo data
CB00DNBST (Boerse-Stuttgart)15.5% RVCV 08/04/2009 EUR1000(ALTAN)DEEURNo data
CB00DMBST (Boerse-Stuttgart)17.5% RVCV 08/04/2009 EUR1000(AAREA)DEEURNo data
CB00P4BST (Boerse-Stuttgart)16% RVCV 08/04/2009 EUR1000(SYMRI)DEEURNo data
CB00P3BST (Boerse-Stuttgart)13% RVCV 08/04/2009 EUR1000(SUEDZ)DEEURNo data
CB00P2BST (Boerse-Stuttgart)15.5% RVCV 08/04/2009 EUR1000(STADA)DEEURNo data
CB00P1BST (Boerse-Stuttgart)20% RVCV 08/04/2009 EUR1000(SGL C)DEEURNo data
CB00P0BST (Boerse-Stuttgart)21.5% RVCV 08/04/2009 EUR1000(SALZG)DEEURNo data
CB00DZBST (Boerse-Stuttgart)18.5% RVCV 08/04/2009 EUR1000(FRAPO)DEEURNo data
CB00DYBST (Boerse-Stuttgart)12% RVCV 08/04/2009 EUR1000(DEUTS)DEEURNo data
CB00DXBST (Boerse-Stuttgart)9% RVCV 08/04/2009 EUR1000(DOUGL)DEEURNo data
CB00DWBST (Boerse-Stuttgart)19.5% RVCV 08/04/2009 EUR1000(DEUTZ)DEEURNo data
CB00DVBST (Boerse-Stuttgart)19% RVCV 08/04/2009 EUR1000(DEMAG)DEEURNo data
CRZB.YOTCPK (Pink Sheets LLC)SPON ADR EA REPR 1 ORD(POST REV SPLIT)USUSDJan 1975
ZZMRDB (Deutsche Boerse AG)SPON ADR EA REPR 1 ORD(POST REV SPLIT)DEEURJan 1975
ZZMSBST (Boerse-Stuttgart)SPON ADR EA REPR 1 ORD(POST REV SPLIT)DEEURJan 1975
CRZB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1979
CBKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1979
CBKWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMay 1979
CBKXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMay 1979
CBKDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 1979
0RLWLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 1979
COMMERZBANKBUSE (Budapest Stock Exchange)YesOrdinary SharesHUHUFMay 1979
CBKSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMay 1979
CBK NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 1979
CBKBIT (Borsa Italiana)YesOrdinary SharesITEURMay 1979
DSF4DB (Deutsche Boerse AG)GENUSSSCHEINE 2005-31/12/2020 EUR50000DEEURJan 2007
0W0PLSE (London Stock Exchange)GENUSSSCHEINE 2005-31/12/2020 EUR50000GBEURJan 2007
CB94FLBST (Boerse-Stuttgart)4.5% NTS 19/10/2020 EUR1000DEEURNov 2017

Biography

Commerzbank Aktiengesellschaft provides banking and capital market services to private and small business customers, corporate clients, multinationals, financial service providers, and institutional clients worldwide. It operates through two segments, Private and Small-Business Customers and Corporate Clients segments. The company offers accounts, commercial payments, cheques, clearing and custody services, and other services; trade services, including documentary collection, letters of credit, guarantee, trade facilitation, supply chain financing, buyer's credit, and forfaiting services; and bilateral loans, syndicated loans, bonds, private placements, other debt instruments, and Islamic financing services. It also provides money market, and commodities and precious metals products, as well as interest, currency, and liquidity management services; and wealth management services. The company operates approximately 1,000 branches. Commerzbank Aktiengesellschaft was founded in 1870 and is headquartered 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 Analysis2020/03/31 23:38
End of Day Share Price2020/03/31 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.