OTCPK:AAAL.F

Stock Analysis Report

Executive Summary

Aareal Bank AG, together with its subsidiaries, provides financing, software products, and digital solutions for the property sector and related industries in Germany and internationally.

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

AAAL.F

1.2%

US Mortgage

1.3%

US Market


1 Year Return

n/a

AAAL.F

12.2%

US Mortgage

5.9%

US Market


Shareholder returns

AAAL.FIndustryMarket
7 Day0%1.2%1.3%
30 Day0%-0.6%-1.9%
90 Day0%2.4%-1.8%
1 Yearn/a14.6%12.2%8.3%5.9%
3 Yearn/a39.9%30.4%45.6%36.2%
5 Yearn/a68.7%51.1%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: AAAL.F ($30.49) is trading above our estimate of fair value ($17.16)

Significantly Undervalued: AAAL.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AAAL.F is good value based on its PE Ratio (6.9x) compared to the Mortgage industry average (14.4x).

PE vs Market: AAAL.F is good value based on its PE Ratio (6.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: AAAL.F is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: AAAL.F is good value based on its PB Ratio (0.5x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Aareal Bank forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAAL.F's forecast earnings growth (2.7% per year) is below the savings rate (2.7%).

Earnings vs Market: AAAL.F's earnings (2.7% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: AAAL.F's revenue (4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AAAL.F's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Aareal Bank performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AAAL.F's earnings have declined by -10.8% per year over the past 5 years.

Accelerating Growth: AAAL.F's earnings growth over the past year (4.1%) exceeds its 5-year average (-10.8% per year).

Earnings vs Industry: AAAL.F earnings growth over the past year (4.1%) underperformed the Mortgage industry 31.7%.


Return on Equity

High ROE: AAAL.F's Return on Equity (7.6%) is considered low.


Return on Assets

ROA vs Industry: AAAL.F's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate AAAL.F's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Aareal 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

Information is not available.

Information is not available.


Financial Institutions Analysis

Asset Level: AAAL.F's level of assets compared to its equity is moderate.

Allowance for Bad Loans: AAAL.F has a low allowance for bad loans.

Low Risk Liabilities: AAAL.F's liabilities are made up of primarily higher risk sources of funding.

Loan Level: AAAL.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits:

Level of Bad Loans: AAAL.F has a high level of bad loans (5.56%)


Next Steps

Dividend

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

8.88%

Current Dividend Yield


Dividend Yield vs Market

company8.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years9.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AAAL.F's dividend (8.88%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: AAAL.F's dividend (8.88%) is in the top 25% of dividend payers in the US market (3.77%)

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

Growing Dividend: AAAL.F's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.6%), AAAL.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AAAL.F's dividends in 3 years are forecast to be covered by earnings (75.7% payout ratio).


Next Steps

Management

What is the CEO of Aareal Bank's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Hermann Merkens (52yo)

3.8yrs

Tenure

€3,581,202

Compensation

Mr. Hermann Josef Merkens serves as Chairman of the supervisory Board at Aareal Beteiligungen AG. He served as the Chairman of the Management Board at Aareal Beteiligungen AG since September 2015 and serve ...


CEO Compensation Analysis

Information is not available.

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


Management Age and Tenure

3.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: AAAL.F's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AAAL.F's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hermann Merkens (52yo)

    Chairman of the Management Board

    • Tenure: 3.8yrs
    • Compensation: €3.58m
  • Thomas Ortmanns (58yo)

    Member of the Management Board

    • Tenure: 13.8yrs
    • Compensation: €2.32m
  • Dagmar Knopek (60yo)

    Member of the Management Board

    • Tenure: 6yrs
    • Compensation: €2.19m
  • Christiane Kunisch-Wolff (52yo)

    Chief Risk Officer & Member of the Management Board

    • Tenure: 3.3yrs
    • Compensation: €1.79m
  • Christof Winkelmann (42yo)

    Member of Management Board

    • Tenure: 2.9yrs
    • Compensation: €1.91m
  • Holger Spielberg (50yo)

    Group Managing Director of Group Technology

    • Tenure: 0yrs
  • Brigitte Butz

    Head of Human Resources

    • Tenure: 0yrs
  • Jürgen Junginger

    Managing Director Investor Relations

    • Tenure: 0yrs
  • Cornelia Müller (51yo)

    Head of Corporate Communications division

    • Tenure: 1.3yrs
  • Marc Hess (44yo)

    CFO & Member of the Management Board

    • Tenure: 0.7yrs
    • Compensation: €1.23m

Board Members

  • Sylvia Seignette (68yo)

    Supervisory Board Member

    • Tenure: 4.1yrs
    • Compensation: €103.00k
  • Marija Korsch (70yo)

    Chairman of the Supervisory Board

    • Tenure: 6.1yrs
    • Compensation: €301.00k
  • Hans-Dietrich Voigtländer (60yo)

    Supervisory Board Member

    • Tenure: 4.1yrs
    • Compensation: €141.00k
  • Stephan Schüller (66yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 4.1yrs
    • Compensation: €152.00k
  • Thomas Hawel (55yo)

    Employee Representative Supervisory Board Member

    • Tenure: 13.1yrs
    • Compensation: €77.00k
  • Hermann Wagner (62yo)

    Supervisory Board Member

    • Tenure: 4.1yrs
    • Compensation: €126.00k
  • Richard Peters (61yo)

    Supervisory Board Member

    • Tenure: 6.1yrs
    • Compensation: €123.00k
  • Elisabeth Stheeman (54yo)

    Supervisory Board Member

    • Tenure: 4.1yrs
    • Compensation: €102.00k
  • Hans-Werner Rhein (66yo)

    Supervisory Board Member

    • Tenure: 4.1yrs
    • Compensation: €101.00k
  • Klaus Novatius (51yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Aareal Bank AG
  • Ticker: AAAL.F
  • Exchange: OTCPK
  • Founded: 1923
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: €1.415b
  • Listing Market Cap: €1.602b
  • Shares outstanding: 59.86m
  • Website: https://www.aareal-bank.com

Number of Employees


Location

  • Aareal Bank AG
  • Paulinenstrasse 15
  • Wiesbaden
  • Hessen
  • 65189
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2002
ARLXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJun 2002
0MG0LSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2002
AAAL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2002
ARLDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2002
ARLSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJun 2002
ARLWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 2002
114071919BDL (Bourse de Luxembourg)7.625%-FRN PERP EUR200000 'REGS'LUEURNov 2014
A1TNDKDB (Deutsche Boerse AG)7.625%-FRN PERP EUR200000 'REGS'DEEURNov 2014

Biography

Aareal Bank AG, together with its subsidiaries, provides financing, software products, and digital solutions for the property sector and related industries in Germany and internationally. The company opera ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/23 00:13
End of Day Share Price2019/03/25 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.