ProCredit Holding AG (PCZ) AI Stock Analysis

• Market Cap: €545.40M
• Dividend Yield: 5.53%
• Average Volume (3M): 36.59K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.83
• Revenue Growth: 11.25%
• EPS Growth: -8.00%
• Country: DE
• Employees: 4,530
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 58,898,490
• 10 Day Avg. Volume: 26,196
• 30 Day Avg. Volume: 36,595
• PEG Ratio: N/A
• Price to Book (P/B): 0.53
• 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: €20.00
• Price Target Upside: 111.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ―

ProCredit Holding AG's strong balance sheet and undervaluation are significant strengths, offering a solid foundation for stability. However, challenges exist with declining profit margins and negative cash flow, necessitating attention to operational efficiency and cash management. The mixed technical signals indicate some uncertainty in short-term market momentum.

ProCredit Holding AG Business Overview & Revenue Model

Company Description

ProCredit Holding AG is a Germany-based company that operates as the parent company of the ProCredit group, which primarily focuses on providing banking services to small and medium-sized enterprises (SMEs) in emerging economies. The company operates in various countries across Eastern Europe, Latin America, and Africa. Its core products and services include business loans, savings accounts, and other financial services aimed at supporting the development of SMEs and fostering economic growth in the regions it serves.

How the Company Makes Money

ProCredit Holding AG generates revenue primarily through the interest income earned on loans provided to small and medium-sized enterprises (SMEs). The company offers a range of credit products tailored to the needs of SMEs, such as working capital loans, investment loans, and trade finance solutions. In addition to interest income, ProCredit earns money from fees and commissions associated with its financial services, which include account maintenance fees, transaction fees, and foreign exchange services. The company also benefits from strategic partnerships with international financial institutions and development banks, which provide funding and risk-sharing mechanisms to support its lending activities.

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	569.45M	461.15M	399.39M	358.36M	301.86M	273.07M
Gross Profit	641.02M	461.15M	658.03M	358.36M	301.86M	273.07M
EBITDA	-2.40M	0.00	173.53M	152.33M	125.21M	105.59M
Net Income	106.91M	104.31M	113.37M	16.50M	79.64M	41.40M
Balance Sheet
Total Assets	10.06B	10.75B	9.75B	8.83B	8.22B	7.33B
Cash, Cash Equivalents and Short-Term Investments	2.11B	2.16B	2.28B	1.94B	1.55B	1.41B
Total Debt	1.42B	0.00	1.44B	309.98M	460.62M	374.61M
Total Liabilities	9.05B	9.70B	8.77B	309.98M	460.62M	374.61M
Stockholders Equity	1.00B	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: Positive
• Last Price: 9.44
• 50DMA: Negative
• 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:PCZ, the sentiment is Positive. The current price of 9.44 is below the 20-day moving average (MA) of 9.45, below the 50-day MA of 9.69, and above the 200-day MA of 8.50, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 63.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:PCZ.

ProCredit Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLP	76 Outperform	€914.96M	13.24	11.88%	4.30%	9.29%	30.77%
DBK	74 Outperform	$47.22B	10.65	6.68%	2.41%	3.36%	3.08%
CBK	74 Outperform	€31.63B	11.36	9.28%	2.43%	17.06%	25.66%
PCZ	71 Outperform	€545.40M	5.68	9.17%	5.53%	11.25%	-8.00%
Sector *	67 Neutral	€10.34B	14.38	6.96%	3.50%	13.89%	1.77%
WUW	64 Neutral	€1.30B	38.35	0.69%	4.67%	4.19%	-75.44%
HYQ	63 Neutral	€1.32B	88.92	9.19%	―	63.90%	-34.94%