GRENKE AG (GLJ) AI Stock Analysis

• Market Cap: €752.30M
• Dividend Yield: 2.48%
• Average Volume (3M): 67.95K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.15
• Revenue Growth: 18.02%
• EPS Growth: -39.53%
• Country: DE
• Employees: 2,196
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.36
• Shares Outstanding: 46,495,570
• 10 Day Avg. Volume: 42,165
• 30 Day Avg. Volume: 67,954
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €21.25
• Price Target Upside: 31.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 62 Neutral
• Price Target: €18.00 ▲(11.25% Upside)

The overall stock score for GRENKE AG is driven primarily by its solid financial performance and reasonable valuation. The high leverage and declining profitability metrics are significant risks that need addressing. Technical indicators suggest a bearish trend, which could impact short-term performance.

GRENKE AG Business Overview & Revenue Model

Company Description

Grenke AG, together with its subsidiaries, provides a range of banking and financial services to small and medium-sized (SME) enterprises in Germany, France, Italy, and internationally. It operates through three segments: Leasing, Banking, and Factoring. The company is involved in the leasing activities, such as financing to commercial lessees, leasing, service, protection, and maintenance offerings, as well as disposal of used equipment; and small-ticket leasing of IT products, such as PCs, notebooks, servers, monitors, peripheral equipment, software, telecommunication and copying and medical technology, as well as other IT products. It also provides banking products and services, such as fixed deposits to private and business customers through its Website; financing services to business start-ups, as well as development loans to SMEs and self-employed professionals; and small-ticket factoring services. Grenke AG operates a total of 154 locations. The company was formerly known as GrenkeLeasing AG and changed its name to Grenke AG in May 2016. Grenke AG was founded in 1978 and is headquartered in Baden-Baden, Germany.

How the Company Makes Money

GRENKE AG generates revenue primarily through its leasing operations, where it provides equipment leasing solutions that allow SMEs to use necessary assets without a significant capital investment. The company earns money from the lease payments made by customers over the term of the lease, which typically includes interest income. Additionally, GRENKE engages in factoring, providing businesses with immediate cash flow by purchasing their receivables, thus generating income through fees and interest. The company also has a banking segment that offers various financial products, contributing to its revenue through interest income and service fees. Significant partnerships with technology vendors and resellers enhance GRENKE's market reach and support its revenue growth by facilitating access to finance for their customers. Overall, the company's diverse portfolio and focus on the SME sector position it for steady income generation.

GRENKE AG Financial Statement Overview

Summary

GRENKE AG shows moderate financial performance. Income growth is inconsistent, profitability is challenged, and there's high leverage despite a solid equity base. Cash flow volatility suggests potential liquidity risks.

Income Statement

GRENKE AG shows a mixed performance in its income statement. The revenue growth has been inconsistent, with an increase from 2023 to 2024 after a decrease in 2022. Gross profit margin remains stable, but net profit margin has decreased, indicating potential challenges in cost management or profitability. EBIT and EBITDA margins are moderate, suggesting operational efficiency but room for improvement.

Balance Sheet

The balance sheet reflects a strong equity base with a stable equity ratio, but there is a high debt-to-equity ratio, indicative of significant leverage. Return on equity shows a downward trend, suggesting a need for more profitable use of equity. The balance sheet shows financial stability but also highlights the necessity for careful debt management.

Cash Flow

The cash flow statement indicates volatile operating cash flows, with a substantial increase in free cash flow in 2024. However, historical fluctuations in cash flows and a reduced free cash flow to net income ratio could pose a risk to liquidity management. The operating cash flow to net income ratio suggests some level of efficiency in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	880.64M	819.15M	687.14M	614.02M	608.60M	659.16M
Gross Profit	420.62M	396.86M	499.04M	384.38M	414.83M	468.74M
EBITDA	179.84M	153.51M	135.65M	146.31M	165.66M	155.05M
Net Income	55.60M	75.94M	92.32M	90.38M	99.54M	93.67M
Balance Sheet
Total Assets	8.93B	8.22B	7.10B	6.41B	6.66B	7.33B
Cash, Cash Equivalents and Short-Term Investments	1.03B	975.46M	697.20M	449.46M	853.37M	946.32M
Total Debt	4.69B	4.32B	3.84B	3.66B	3.69B	4.29B
Total Liabilities	7.51B	6.90B	5.74B	5.08B	5.39B	6.14B
Stockholders Equity	1.38B	1.34B	1.17B	1.36B	1.30B	1.22B
Cash Flow
Free Cash Flow	422.57M	385.39M	322.22M	-355.05M	-79.17M	549.91M
Operating Cash Flow	434.44M	393.96M	329.25M	-346.84M	-72.04M	567.19M
Investing Cash Flow	15.01M	-12.08M	-33.34M	-8.25M	20.64M	-16.52M
Financing Cash Flow	-65.94M	-105.51M	-47.30M	-49.92M	-39.01M	-53.28M

GRENKE AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.18
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:GLJ, the sentiment is Negative. The current price of 16.18 is below the 20-day moving average (MA) of 16.82, below the 50-day MA of 17.37, and above the 200-day MA of 15.50, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 35.69 is Neutral, neither overbought nor oversold. The STOCH value of 16.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:GLJ.

GRENKE AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPCK	73 Outperform	173.78M	10.42	12.91%	5.48%	12.21%	28.29%
ALG	65 Neutral	65.71M	10.52	17.80%	2.90%	-23.72%	40.60%
GLJ	62 Neutral	€752.30M	12.68	4.79%	2.48%	18.02%	-39.53%
MUX	58 Neutral	646.71M	17.19	-59.84%	6.58%	14.56%	0.00%
PBB	54 Neutral	680.45M	-3.14	2.63%	2.96%	-14.47%	-542.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%