GRENKE AG (GLJ) AI Stock Analysis

• Market Cap: €870.40M
• Dividend Yield: 2.14%
• Average Volume (3M): 105.56K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.14
• Revenue Growth: 20.20%
• EPS Growth: -27.97%
• Country: DE
• Employees: 2,196
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 0.35
• Shares Outstanding: 46,495,570
• 10 Day Avg. Volume: 119,303
• 30 Day Avg. Volume: 105,560
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €20.40
• Price Target Upside: 14.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 60 Neutral
• Price Target: €17.00 ▼(-4.28% Downside)

GRENKE AG's stock score is moderate, driven primarily by its financial performance and valuation. The company's financials show high leverage and inconsistent growth, while the valuation metrics suggest a fair price. Technical indicators reveal bearish momentum, impacting the overall score.

GRENKE AG Business Overview & Revenue Model

Company Description

GRENKE AG (GLJ) is a global provider of financial services, specializing in leasing and financing solutions for small and medium-sized enterprises (SMEs). Founded in 1978 and headquartered in Baden-Baden, Germany, the company operates primarily in the sectors of equipment leasing, factoring, and banking services. GRENKE's core products include leasing for IT and office equipment, as well as financing solutions that support businesses in acquiring the necessary tools for growth without hefty upfront costs.

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 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: 17.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 17.76 is below the 20-day moving average (MA) of 17.81, above the 50-day MA of 16.44, and above the 200-day MA of 15.42, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 63.54 is Neutral, neither overbought nor oversold. The STOCH value of 71.89 is Neutral, 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
MPCK	66 Neutral	€166.73M	9.92	13.29%	5.71%	12.21%	28.29%
ALG	65 Neutral	€64.86M	10.29	18.70%	2.94%	-7.40%	39.43%
Sector *	62 Neutral	C$15.64B	6.64	13.72%	5.97%	22.30%	-10.12%
GLJ	60 Neutral	€870.40M	12.70	4.79%	2.14%	20.20%	-27.97%
PBB	57 Neutral	€732.89M	10.97	-7.33%	2.77%	-14.47%	-542.84%
MUX	49 Neutral	€598.84M	―	4.23%	7.23%	14.56%	-429.63%