GRENKE AG (GLJ) AI Stock Analysis

• Market Cap: €654.66M
• Dividend Yield: 2.84%
• Average Volume (3M): 130.19K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.91
• Revenue Growth: 20.03%
• EPS Growth: -6.76%
• Country: DE
• Employees: 2,196
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): -0.02
• Shares Outstanding: 46,495,570
• 10 Day Avg. Volume: 97,725
• 30 Day Avg. Volume: 130,185
• PEG Ratio: 0.00
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.15
• 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: 50.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: €14.50 ▲(2.84%Upside)

GRENKE AG's stock score of 61 reflects a mixed financial performance with moderate profitability challenges, a strong valuation due to a low P/E ratio, and a decent dividend yield. Technical indicators suggest potential for recovery, though bearish momentum is present. The absence of earnings call and corporate events analysis slightly limits the assessment.

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 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's financial performance is mixed with moderate profitability and growth challenges. The income statement shows inconsistent revenue growth and declined net profit margins. The balance sheet reflects high leverage, while cash flow statements indicate potential liquidity risks due to cash flow volatility.

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	502.74M	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	254.59M	326.59M
	EBITDA
153.51M	143.95M	146.31M	154.00M	355.46M
	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: Positive
• Last Price: 14.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 14.1 is above the 20-day moving average (MA) of 13.81, above the 50-day MA of 13.51, and below the 200-day MA of 17.07, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.29 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
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
GLJ	61 Neutral	€654.66M	9.78	6.57%	2.84%	20.03%	-6.76%
0NP9		€1.47B	14.43	12.25%	1.16%	―	―
0BFA		€38.82B	51.89	2.02%	5.24%	―	―
0O1R		€5.85B	14.07	9.15%	―	―	―
0NW4		€310.10B	54.07	12.91%	0.88%	―	―
DWS	77 Outperform	€10.12B	15.59	8.50%	4.05%	-6.86%	17.57%