GRENKE AG (GLJ) AI Stock Analysis

• Market Cap: €874.12M
• Dividend Yield: 2.13%
• Average Volume (3M): 100.00K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.07
• Revenue Growth: 20.03%
• EPS Growth: -6.76%
• Country: DE
• Employees: 2,196
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): -0.02
• Shares Outstanding: 46,495,570
• 10 Day Avg. Volume: 104,525
• 30 Day Avg. Volume: 100,004
• PEG Ratio: -1.06
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.00
• 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: €21.00
• Price Target Upside: 12.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: €20.00 ▲(6.72%Upside)

The stock score of 64 reflects a combination of mixed financial performance, strong technical momentum, and reasonable valuation. The financial performance poses some risks due to leverage and cash flow volatility. However, strong market momentum supports the stock, although overbought signals suggest caution. The valuation offers a balanced risk-reward profile.

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 primarily generates revenue through its leasing and factoring services. The company's core revenue stream arises from financial leasing, where it provides SMEs with financing solutions for acquiring IT equipment and other business assets. In this model, GRENKE purchases the equipment and leases it to the client for a fixed term, earning money through monthly lease payments. Additionally, the company offers factoring services, purchasing receivables from businesses, which provides them with immediate liquidity while GRENKE collects the outstanding invoices. Interest and service fees from these transactions contribute significantly to the company's earnings. Moreover, GRENKE's banking segment, which offers deposit services and other financial products, supplements its revenue through interest income and associated banking fees. Strategic partnerships with equipment manufacturers and technology providers also play a crucial role in enhancing the company's market reach and service offerings.

GRENKE AG Financial Statement Overview

Summary

GRENKE AG presents a mixed financial health profile. It shows moderate profitability with some growth challenges, high leverage in the balance sheet, and potential liquidity risks from volatile cash flows. Improved debt management and stable revenue growth are needed.

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
EBITDA	153.51M	135.65M	146.31M	165.66M	155.05M
Net Income	75.94M	92.32M	90.38M	99.54M	93.67M
Balance Sheet
Total Assets	8.22B	7.10B	6.41B	6.66B	7.33B
Cash, Cash Equivalents and Short-Term Investments	975.46M	697.20M	449.46M	853.37M	946.32M
Total Debt	4.32B	3.84B	3.66B	3.69B	4.29B
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: Positive
• Last Price: 18.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:GLJ, the sentiment is Positive. The current price of 18.74 is above the 20-day moving average (MA) of 17.34, above the 50-day MA of 15.33, and above the 200-day MA of 15.94, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 77.37 is Negative, neither overbought nor oversold. The STOCH value of 93.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:GLJ.

GRENKE AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLJ	64 Neutral	€874.12M	13.06	6.57%	2.13%	20.03%	-6.76%
Sector *	61 Neutral	C$15.12B	6.81	23.28%	5.39%	33.61%	-23.38%
0FC8	―	€65.28M	10.56	18.70%	2.87%	―	―
0R9K	―	€740.96M	11.47	2.52%	2.73%	―	―
MPCK	71 Outperform	€171.31M	10.19	13.29%	5.54%	12.21%	28.29%
MUX	49 Neutral	€682.87M	―	-46.48%	6.30%	12.21%	-199.48%
BFV	―	€903.53M	59.21	11.68%	0.72%	―	―