ProCredit Holding AG (PCZ) AI Stock Analysis

• Market Cap: €468.83M
• Dividend Yield: 7.32%
• Average Volume (3M): 114.36K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.01
• Revenue Growth: 2.31%
• EPS Growth: -25.41%
• Country: DE
• Employees: 4,530
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.19
• Shares Outstanding: 58,898,490
• 10 Day Avg. Volume: 117,562
• 30 Day Avg. Volume: 114,359
• PEG Ratio: -0.56
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -2.09
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €8.50 ▼(-8.60% Downside)

ProCredit Holding AG's stock score is primarily driven by its strong valuation, with a low P/E ratio and high dividend yield suggesting it is undervalued. However, this is offset by bearish technical indicators and challenges in financial performance, particularly in cash flow management and declining profit margins. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a successful business model and expanding market presence, enhancing long-term sustainability.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial stability and flexibility, allowing the company to invest in growth opportunities without financial strain.

Strategic Partnerships

These partnerships enhance credibility and market reach, enabling access to favorable funding conditions and supporting sustainable development goals.

Negative Factors

Declining Profit Margins

Decreasing profit margins can impact overall profitability, indicating potential challenges in cost management and pricing strategy.

Negative Cash Flow

Negative cash flow highlights inefficiencies in operations and may limit the company's ability to invest in growth and meet financial obligations.

Decreased Return on Equity

A declining return on equity suggests reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence.

ProCredit Holding AG Business Overview & Revenue Model

Company Description

ProCredit Holding AG (PCZ) is a leading development-oriented banking group based in Germany, primarily focused on providing financial services to micro, small, and medium-sized enterprises (MSMEs) in emerging markets. The company operates through a network of subsidiaries and banks in various countries across Eastern Europe, Latin America, and Africa. ProCredit's core products include loans, savings accounts, and other financial services tailored to meet the needs of its target clientele, emphasizing financial inclusion and sustainable development.

How the Company Makes Money

ProCredit Holding AG generates revenue primarily through interest income from loans provided to MSMEs, which constitutes a significant portion of its earnings. The company charges interest on loans, which is typically higher than the interest paid on customer deposits, allowing it to profit from the interest rate spread. Additionally, ProCredit earns fees from various banking services, including transaction fees, account maintenance fees, and advisory services. The company maintains strategic partnerships with development finance institutions and other stakeholders, which not only provide capital but also enhance its credibility and market reach. These partnerships often lead to favorable funding conditions, enabling ProCredit to offer competitive loan products while maintaining a focus on sustainable development goals.

ProCredit Holding AG Financial Statement Overview

Summary

ProCredit Holding AG shows robust revenue growth and a solid balance sheet with no debt. However, declining profit margins and negative cash flow metrics indicate potential challenges in operational efficiency and cash management. Overall, the company is financially stable but needs to address profitability and cash flow issues to sustain growth.

Income Statement

ProCredit Holding AG demonstrates a strong revenue growth trend over the past years, with a notable increase from the previous year. However, the net profit margin has decreased from 28.39% in 2023 to 22.62% in 2024. The absence of EBIT and EBITDA for 2024 limits a comprehensive evaluation of operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with zero debt in 2024, significantly improving its debt-to-equity position. The equity ratio has slightly increased, which indicates a stable financial structure. However, the return on equity has decreased from 11.52% in 2023 to 9.88% in 2024, suggesting a need for improved profitability.

Cash Flow

The company faces challenges in cash flow management, reflected by negative free cash flow in 2024. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash. The decrease in free cash flow growth rate raises concerns about the sustainability of cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	984.20M	692.08M	625.68M	478.44M	390.74M	373.44M
Gross Profit	746.69M	461.15M	432.38M	358.75M	302.32M	273.07M
EBITDA	135.10M	167.82M	187.36M	152.33M	125.21M	105.59M
Net Income	93.73M	104.31M	113.37M	16.50M	79.64M	41.40M
Balance Sheet
Total Assets	10.71B	10.75B	9.75B	8.83B	8.22B	7.33B
Cash, Cash Equivalents and Short-Term Investments	1.91B	2.16B	2.35B	1.94B	1.55B	1.41B
Total Debt	444.09M	377.80M	313.03M	309.98M	460.62M	374.61M
Total Liabilities	9.68B	9.70B	8.77B	7.96B	7.36B	6.55B
Stockholders Equity	1.04B	1.06B	983.79M	869.43M	856.31M	779.73M
Cash Flow
Free Cash Flow	0.00	-217.78M	1.41M	545.71M	115.66M	106.65M
Operating Cash Flow	0.00	-176.75M	29.26M	566.94M	133.15M	135.88M
Investing Cash Flow	0.00	-35.98M	-22.42M	-12.48M	-13.44M	-25.54M
Financing Cash Flow	0.00	54.85M	1.01B	-1.30M	-36.01M	-16.43M

ProCredit Holding AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:PCZ, the sentiment is Negative. The current price of 9.3 is above the 20-day moving average (MA) of 7.57, above the 50-day MA of 8.57, and above the 200-day MA of 9.16, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 87.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:PCZ.

ProCredit Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWB	77 Outperform	€312.96M	6.54	24.12%	2.00%	15.69%	268.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PCZ	66 Neutral	€468.83M	6.03	7.49%	7.32%	2.31%	-25.41%