Deutsche Pfandbriefbank (PBB) AI Stock Analysis

• Market Cap: €736.25M
• Dividend Yield: 2.74%
• Average Volume (3M): 336.55K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.87
• Revenue Growth: -14.47%
• EPS Growth: -542.84%
• Country: DE
• Employees: 656
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Mortgages
• EPS (TTM): -1.90
• Shares Outstanding: 134,475,310
• 10 Day Avg. Volume: 559,875
• 30 Day Avg. Volume: 336,554
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €6.80
• Price Target Upside: 24.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: €6.00 ▲(9.69% Upside)

The overall stock score of 61 reflects a mixed outlook for Deutsche Pfandbriefbank. The most significant factor is the financial performance, which shows resilience but also highlights risks due to negative cash flow metrics. Technical analysis indicates a positive trend, which supports the stock's current momentum. However, the valuation is concerning with a negative P/E ratio, suggesting potential profitability issues. The dividend yield provides some support, but overall, the stock faces challenges that need addressing for a more favorable outlook.

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

Deutsche Pfandbriefbank generates revenue primarily through interest income from its lending activities. The bank provides long-term financing solutions, including mortgage loans secured by real estate and loans to public sector entities. Additionally, PBB earns fees from advisory services and capital market activities, such as issuing Pfandbriefe (covered bonds) to raise funds for its lending operations. The bank's relationship with institutional clients enables it to maintain a stable portfolio of high-quality loans, which contributes to consistent interest income. Partnerships with real estate developers and public authorities further enhance its revenue potential by facilitating access to lucrative financing projects.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	544.00M	391.00M	1.64B	1.59B	1.59B
Gross Profit	374.00M	603.00M	487.00M	1.59B	1.59B
EBITDA	125.00M	117.00M	0.00	0.00	0.00
Net Income	90.00M	91.00M	188.00M	229.00M	121.00M
Balance Sheet
Total Assets	44.17B	50.88B	53.01B	58.40B	58.86B
Cash, Cash Equivalents and Short-Term Investments	2.01B	2.73B	-1.04B	-6.61B	-5.38B
Total Debt	21.58B	22.46B	30.08B	32.85B	30.29B
Total Liabilities	40.75B	47.52B	49.88B	55.27B	55.86B
Stockholders Equity	3.42B	3.37B	3.13B	3.12B	3.00B
Cash Flow
Free Cash Flow	-2.22B	398.00M	-32.00M	213.00M	-257.00M
Operating Cash Flow	-2.19B	421.00M	-13.00M	228.00M	-244.00M
Investing Cash Flow	1.51B	1.44B	-5.35B	1.13B	4.52B
Financing Cash Flow	-31.00M	-181.00M	-201.00M	-126.00M	-38.00M

Deutsche Pfandbriefbank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5.47 is above the 20-day moving average (MA) of 5.41, above the 50-day MA of 5.35, and above the 200-day MA of 5.27, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 46.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:PBB.

Deutsche Pfandbriefbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
PBB	61 Neutral	€736.25M	10.97	-7.33%	2.74%	-14.47%	-542.84%
QB7	―	€152.81M	22.00		4.37%	―	―
EUX	―	€251.32M	43.04	7.07%	6.57%	―	―
BWB	71 Outperform	€239.69M	5.01	24.12%	2.60%	15.69%	268.17%
BFV	―	€929.53M	43.27	16.53%	―	―	―
MBK	―	€138.46M	11.61		2.81%	―	―