GRENKE AG (GLJ) AI Stock Analysis

• Market Cap: €638.85M
• Dividend Yield: 2.52%
• Average Volume (3M): 114.12K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.89
• Revenue Growth: 20.03%
• EPS Growth: -6.76%
• Country: DE
• Employees: 2,196
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Credit Services
• EPS (TTM): -0.02
• Shares Outstanding: 46,495,570
• 10 Day Avg. Volume: 90,218
• 30 Day Avg. Volume: 114,122
• PEG Ratio: -1.03
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.56
• 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: €21.33
• Price Target Upside: 53.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: €14.50 ▲(4.32%Upside)

GRENKE AG's stock score reflects a balance between its mixed financial performance and attractive valuation. The primary strengths are the low P/E ratio and reasonable dividend yield, which make the stock appealing from a valuation perspective. However, concerns over financial stability due to high leverage and cash flow volatility weigh down the score. Technical analysis suggests a neutral market sentiment, neither strongly bullish nor bearish.

GRENKE AG Business Overview & Revenue Model

Company Description

GRENKE AG is a German-based financial services company specializing in leasing and factoring solutions for small and medium-sized enterprises (SMEs). The company offers a range of products including office equipment leasing, IT leasing, and factoring services. With a focus on providing flexible financial solutions, GRENKE AG operates across various sectors, primarily targeting SMEs that require access to capital for business growth and operations.

How the Company Makes Money

GRENKE AG makes money primarily through its leasing and factoring services. The company generates revenue by providing leasing solutions to SMEs for various equipment, such as IT and office equipment. This involves leasing assets to businesses and earning income through lease payments over the contract period. Additionally, GRENKE AG offers factoring services, where it purchases receivables from businesses and earns through the collection of those receivables. The company also benefits from interest income on leased assets and fee-based services. Significant partnerships with equipment manufacturers and financial institutions enhance its ability to offer competitive leasing solutions, contributing to its revenue streams.

GRENKE AG Financial Statement Overview

Summary

GRENKE AG demonstrates a mixed financial health profile. The income statement shows moderate profitability and growth challenges, while the balance sheet reveals high leverage but a solid equity base. Cash flow analysis indicates potential liquidity risks due to cash generation volatility. The company should focus on stabilizing revenue growth, managing debt levels, and ensuring consistent cash flow for better financial performance.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
819.15M	687.14M	614.02M	608.60M	659.16M
	Gross Profit
396.86M	499.04M	384.38M	414.83M	468.74M
	EBIT
90.02M	112.91M	97.98M	132.51M	125.12M
	EBITDA
153.51M	135.65M	146.31M	165.66M	155.05M
	Net Income Common Stockholders
75.94M	92.32M	90.38M	99.54M	93.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
975.46M	697.20M	449.46M	853.37M	946.32M
	Total Assets
8.22B	7.10B	6.41B	6.66B	7.33B
	Total Debt
4.32B	3.84B	3.66B	3.69B	4.29B
	Net Debt
3.35B	3.14B	3.21B	2.83B	3.35B
	Total Liabilities
6.90B	5.74B	5.08B	5.39B	6.14B
	Stockholders Equity
1.34B	1.17B	1.36B	1.30B	1.22B
Cash Flow		Free Cash Flow
385.39M	322.22M	-355.05M	-79.17M	549.91M
	Operating Cash Flow
393.96M	329.25M	-346.84M	-72.04M	567.19M
	Investing Cash Flow
-12.08M	-33.34M	-8.25M	20.64M	-16.52M
	Financing Cash Flow
-105.51M	-47.30M	-49.92M	-39.01M	-53.28M

GRENKE AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 13.9 is above the 20-day moving average (MA) of 13.88, above the 50-day MA of 13.59, and below the 200-day MA of 16.75, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 19.69 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
DWS	77 Outperform	€9.54B	14.71	8.50%	4.71%	-6.86%	17.57%
FRA	74 Outperform	€5.56B	12.99	9.15%	―	6.79%	-3.02%
AIXA	69 Neutral	€1.53B	15.27	12.25%	1.10%	-6.50%	-34.18%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
GLJ	64 Neutral	€638.85M	9.54	6.57%	2.52%	20.03%	-6.76%
SAP	60 Neutral	€289.15B	50.42	12.91%	0.95%	10.51%	203.70%
BAS	56 Neutral	€37.00B	50.06	2.02%	5.43%	-2.04%	2258.97%