Deutsche Pfandbriefbank (PBB) AI Stock Analysis

• Market Cap: €589.00M
• Dividend Yield: 3.52%
• Average Volume (3M): 227.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -14.47%
• EPS Growth: -542.84%
• Country: DE
• Employees: 656
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): N/A
• Shares Outstanding: 134,475,310
• 10 Day Avg. Volume: 220,967
• 30 Day Avg. Volume: 227,730
• PEG Ratio: -1.22
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 1.72
• P/FCF Ratio: -0.29
• 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: €4.94
• Price Target Upside: 15.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: €4.50 ▲(5.63% Upside)

The overall stock score is primarily influenced by financial performance, which shows resilience but also highlights risks due to negative cash flow metrics. Technical analysis indicates a bearish trend, and valuation concerns arise from a negative P/E ratio, despite a decent dividend yield. These factors collectively suggest caution for potential investors.

Positive Factors

Stable Net Margins

Stable net margins indicate effective cost management, which is crucial for maintaining profitability in a volatile revenue environment.

Strong Equity Position

A strong equity position with no debt reliance enhances financial stability and provides a solid foundation for future growth.

High Liquidity

High liquidity ensures the company can meet short-term obligations and invest in growth opportunities, supporting long-term sustainability.

Negative Factors

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which could limit the company's ability to invest in growth and meet financial obligations.

Revenue Volatility

Revenue volatility can impact financial stability and planning, making it challenging to sustain growth and profitability.

Negative Operating Cash Flow

Negative operating cash flow suggests inefficiencies in converting income to cash, potentially affecting operational flexibility and investment capacity.

Deutsche Pfandbriefbank Business Overview & Revenue Model

Company Description

Deutsche Pfandbriefbank AG provides commercial real estate and public investment finance products. Its commercial real estate financing activities include financing instruments, such as financing investment projects, development finance, cross-border portfolio financing, investment bridge finance facilities, standby/backup facilities, and derivatives. The company primarily finances offices, retail, and logistic real estate companies, as well as residential properties targeting real estate companies, institutional investors, real estate funds, and medium-sized and regionally orientated clients. It is also involved in the public investment financing activities, such as financing for public sector facilities, municipal and residential buildings, utilities, infrastructure, medical and geriatric care facilities, and administration and insurance facilities. In addition, the company operates a digital platform for public sector borrowers and institutional investors under the CAPVERIANT name. Deutsche Pfandbriefbank AG has offices in four locations in Eschborn, Düsseldorf, Hamburg, and Berlin in Germany; and five locations in London, Madrid, Paris, Stockholm, and New York City. The company was formerly known as Hypo Real Estate Bank AG and changed its name to Deutsche Pfandbriefbank AG in June 2009. Deutsche Pfandbriefbank AG is headquartered in Garching, Germany.

How the Company Makes Money

PBB generates revenue primarily through interest income from its lending activities, which includes mortgage loans and public sector financing. The bank earns interest payments over the life of these loans, which constitute a significant portion of its revenue. Additionally, PBB benefits from fee income through advisory services and loan origination fees. The bank's revenue model is supported by its strong relationships with institutional investors and public sector clients, allowing it to secure a steady stream of financing opportunities. Furthermore, PBB’s access to capital markets enables it to issue covered bonds (Pfandbriefe), providing a low-cost funding source that bolsters its lending capabilities and profitability.

Deutsche Pfandbriefbank Financial Statement Overview

Summary

Deutsche Pfandbriefbank shows resilience with stable net margins and strong equity positioning. However, the negative cash flow metrics and revenue volatility present risks that need addressing for sustained financial health. The bank must focus on improving cash generation and maintaining revenue growth to enhance its financial standing.

Income Statement

The income statement shows a significant revenue decline from previous years, but the net profit margin remains stable at approximately 16.54% for 2024, indicating effective cost management. However, EBIT and EBITDA margins are unavailable for 2024, potentially limiting insights into operational efficiency. The revenue growth rate between 2023 and 2024 is positive, suggesting a recovery from past downturns.

Balance Sheet

The balance sheet highlights strong equity with a debt-to-equity ratio of 0 for 2024, indicating no reliance on debt financing. The equity ratio is 7.74%, suggesting moderate financial stability. Return on equity (ROE) is solid at 2.63%, showing effective use of equity to generate profits. The high level of cash and equivalents improves liquidity.

Cash Flow

Cash flow analysis reveals negative free cash flow for 2024, which could pose liquidity challenges. The operating cash flow to net income ratio is negative, indicating potential issues in converting income into cash. The free cash flow to net income ratio also reflects this concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.00M	374.00M	391.00M	1.64B	1.59B	1.59B
Gross Profit	82.00M	374.00M	391.00M	487.00M	510.00M	1.59B
EBITDA	-207.00M	125.00M	117.00M	235.00M	266.00M	169.00M
Net Income	-216.00M	90.00M	91.00M	188.00M	229.00M	121.00M
Balance Sheet
Total Assets	42.36B	44.17B	50.88B	53.01B	58.40B	58.86B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.01B	2.73B	1.04B	6.61B	-5.38B
Total Debt	20.59B	21.58B	27.38B	30.08B	32.85B	30.29B
Total Liabilities	39.21B	40.75B	47.52B	49.88B	55.27B	55.86B
Stockholders Equity	3.14B	3.42B	3.37B	3.42B	3.12B	3.00B
Cash Flow
Free Cash Flow	-603.00M	-2.22B	398.00M	-32.00M	213.00M	-257.00M
Operating Cash Flow	-579.00M	-2.19B	421.00M	-13.00M	228.00M	-244.00M
Investing Cash Flow	1.27B	1.51B	1.44B	-5.35B	1.13B	4.52B
Financing Cash Flow	-51.00M	-31.00M	-181.00M	-201.00M	-126.00M	-38.00M

Deutsche Pfandbriefbank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.26
• 50DMA: Negative
• 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:PBB, the sentiment is Negative. The current price of 4.26 is below the 20-day moving average (MA) of 4.38, below the 50-day MA of 4.56, and below the 200-day MA of 5.13, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 22.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:PBB.

Deutsche Pfandbriefbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWB	77 Outperform	€337.22M	7.04	24.12%	1.87%	15.69%	268.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PBB	53 Neutral	€589.00M	-2.64	-7.33%	3.52%	-14.47%	-542.84%