LSE:0QPJ

Stock Analysis Report

Executive Summary

Cembra Money Bank AG provides consumer finance products and services in Switzerland.

Rewards

Trading at 11.5% below its fair value

Earnings are forecast to grow 9.36% per year

Earnings have grown 2.1% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Cembra Money Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.5%

0QPJ

6.6%

GB Consumer Finance

3.9%

GB Market


1 Year Return

-5.9%

0QPJ

-68.7%

GB Consumer Finance

-22.4%

GB Market

Return vs Industry: 0QPJ exceeded the UK Consumer Finance industry which returned -68.5% over the past year.

Return vs Market: 0QPJ exceeded the UK Market which returned -22.7% over the past year.


Shareholder returns

0QPJIndustryMarket
7 Day5.5%6.6%3.9%
30 Day-17.3%-45.7%-16.1%
90 Day-15.3%-52.9%-26.1%
1 Year-2.1%-5.9%-67.3%-68.7%-18.2%-22.4%
3 Year22.9%7.6%-79.2%-85.2%-11.7%-23.1%
5 Year75.6%46.2%-78.8%-85.8%1.9%-21.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Cembra Money Bank undervalued compared to its fair value and its price relative to the market?

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0QPJ (CHF87.35) is trading below our estimate of fair value (CHF98.7)

Significantly Below Fair Value: 0QPJ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 0QPJ is poor value based on its PE Ratio (15.8x) compared to the Consumer Finance industry average (5.8x).

PE vs Market: 0QPJ is poor value based on its PE Ratio (15.8x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0QPJ is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 0QPJ is overvalued based on its PB Ratio (2.4x) compared to the GB Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is Cembra Money Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0QPJ's forecast earnings growth (9.4% per year) is above the savings rate (0.5%).

Earnings vs Market: 0QPJ's earnings (9.4% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: 0QPJ's revenue (8.6% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: 0QPJ's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QPJ's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Cembra Money Bank performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: 0QPJ's current net profit margins (36.6%) are lower than last year (39.6%).


Past Earnings Growth Analysis

Earnings Trend: 0QPJ's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: 0QPJ's earnings growth over the past year (3.3%) exceeds its 5-year average (2.1% per year).

Earnings vs Industry: 0QPJ earnings growth over the past year (3.3%) underperformed the Consumer Finance industry 12.7%.


Return on Equity

High ROE: 0QPJ's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is Cembra Money Bank'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: 0QPJ has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0QPJ's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: Insufficient data to determine if 0QPJ has a sufficient allowance for bad loans.

Low Risk Liabilities: 0QPJ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0QPJ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0QPJ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0QPJ has an appropriate level of bad loans.


Next Steps

Dividend

What is Cembra Money Bank's current dividend yield, its reliability and sustainability?

4.20%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0QPJ's dividend (4.28%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: 0QPJ's dividend (4.28%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0QPJ has been paying a dividend for less than 10 years.

Growing Dividend: 0QPJ's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.8%), 0QPJ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QPJ's dividends in 3 years are forecast to be covered by earnings (67.8% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Robert Oudmayer (57yo)

10.83s

Tenure

CHF1,776,444

Compensation

Mr. Robert Oudmayer has been the Chief Executive Officer and Member of The Management Board at Cembra Money Bank AG (formerly GE Money Bank AG) since 2009. Mr. Oudmayer served as the Chief Executive Office ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD1.85M) is about average for companies of similar size in the UK market ($USD2.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Oudmayer
CEO & Member of Management Board10.83yrsCHF1.78m0.037% CHF968.6k
Pascal Perritaz
CFO & Member of Management Board1.42yrsno datano data
Daniel Frei
MD of B2C & Member of the Management Board23.17yrsno data0.015% CHF387.6k
Emanuel Hofacker
General Counsel5.42yrsno data0.0074% CHF192.9k
Volker Gloe
Chief Risk Officer & Member of Management Board7.17yrsno data0.014% CHF366.9k
Niklaus Mannhart
COO & Member of Management Board1.58yrsno datano data
Jörg Fohringer
MD of B2B & Member of Management Board1.25yrsno datano data
Edina Jung
Senior Legal Counsel & Corporate Secretaryno datano datano data

5.4yrs

Average Tenure

52yo

Average Age

Experienced Management: 0QPJ's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Felix Weber
Independent Chairman of the Board6.58yrsCHF475.66k0.025% CHF646.8k
Monica Mächler
Independent Director4.83yrsCHF144.57kno data
Peter Athanas
Independent Director6.17yrsCHF175.17kno data
Urs Baumann
Independent Director5.83yrsCHF160.63k0.025% CHF642.3k
Denis Hall
Independent Director6.42yrsCHF142.42kno data
Katrina Machin
Independent Director3.83yrsCHF137.03kno data

6.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 0QPJ's board of directors are considered experienced (6 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Cembra Money Bank AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cembra Money Bank AG
  • Ticker: 0QPJ
  • Exchange: LSE
  • Founded: 1912
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: CHF2.621b
  • Shares outstanding: 29.38m
  • Website: https://www.cembra.ch

Number of Employees


Location

  • Cembra Money Bank AG
  • Bändliweg 20
  • Zurich
  • Zurich
  • 8048
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMBNSWX (SIX Swiss Exchange)YesCommon SharesCHCHFOct 2013
GEHDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2013
0QPJLSE (London Stock Exchange)YesCommon SharesGBCHFOct 2013

Biography

Cembra Money Bank AG provides consumer finance products and services in Switzerland. The company offers savings products, including medium-term notes and deposit accounts; loans comprising cash loans, consumer loans, personal loans, business loans, credit card receivables, and auto loans; and leasing services for new and used vehicles, including cars, light commercial vehicles, motorcycles, and caravans, as well as corporate leasing services. It also provides financial protection, travel and flight, and card protection insurance products; investment products; and credit cards. In addition, the company offers financing solution to small business under the Cembra Business brand, as well as invoice financing services. The company serves private and self-employed individuals, and small and medium enterprises. It operates through a network of 17 branches, as well as through various sales channels, such as the internet, credit card partners, independent intermediaries, and approximately 4,000 car dealers. The company was formerly known as GE Money Bank Aktiengesellschaft and changed its name to Cembra Money Bank AG in October 2013. Cembra Money Bank AG was founded in 1912 and is headquartered in Zurich, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:31
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.