ProCredit Holding AG (PCZ) AI Stock Analysis

• Market Cap: €534.80M
• Dividend Yield: 6.5%
• Average Volume (3M): 43.99K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.94
• Revenue Growth: 6.69%
• EPS Growth: -18.28%
• Country: DE
• Employees: 4,530
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 58,898,490
• 10 Day Avg. Volume: 55,430
• 30 Day Avg. Volume: 43,990
• PEG Ratio: -0.75
• 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: 120.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: €10.00 ▲(10.13%Upside)

ProCredit Holding AG's overall score is bolstered by strong valuation metrics, with a low P/E ratio and high dividend yield indicating potential undervaluation. Financial performance is solid with revenue growth and a debt-free balance sheet, but is offset by declining margins and negative cash flow metrics. Technical indicators present mixed signals, with bearish momentum but nearing oversold conditions, suggesting caution.

ProCredit Holding AG Business Overview & Revenue Model

Company Description

ProCredit Holding AG & Co. KGaA, together with its subsidiaries, provides commercial banking services for small and medium enterprises and private customers in Europe, South America, and Germany. The company's financial products; business loans for wholesale and retail trade, agriculture, forestry and fishing, production, transportation and storage, and other activities, as well as investment, working capital, and green loans; and private loans, such as housing, investment, and other loans. It also offers current, savings, and term deposit accounts; mobile and electronic banking services; and card payment services, as well as grants credit lines and overdrafts. The company was formerly known as Internationale Micro Investitionen AG and changed its name to ProCredit Holding AG & Co. KGaA. ProCredit Holding AG & Co. KGaA was founded in 1998 and is based in Frankfurt am Main, Germany.

How the Company Makes Money

ProCredit Holding AG generates revenue primarily through interest income from loans and advances to customers, which is the largest component of its income. The company offers a range of financial services including business loans, personal loans, and mortgage products, focusing heavily on SMEs. Additionally, it earns fee and commission income from account maintenance, transaction services, and other banking operations. ProCredit also places a strong emphasis on digital banking solutions, which help reduce operational costs and enhance customer experience, thereby contributing to its profitability. Partnerships with international financial institutions and development organizations may also play a role in supporting its operations and funding growth initiatives.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	692.08M	399.39M	358.36M	301.86M	273.07M
Gross Profit	461.15M	658.03M	358.36M	301.86M	273.07M
EBITDA	167.82M	173.53M	152.33M	125.21M	105.59M
Net Income	104.31M	113.37M	16.50M	79.64M	41.40M
Balance Sheet
Total Assets	10.75B	9.75B	8.83B	8.22B	7.33B
Cash, Cash Equivalents and Short-Term Investments	2.16B	2.35B	1.94B	1.55B	1.41B
Total Debt	377.80M	313.03M	309.98M	460.62M	374.61M
Total Liabilities	9.70B	8.77B	7.96B	7.36B	6.55B
Stockholders Equity	1.06B	983.79M	869.43M	856.31M	779.73M
Cash Flow
Free Cash Flow	-217.78M	1.41M	545.71M	115.66M	106.65M
Operating Cash Flow	-176.75M	29.26M	566.94M	133.15M	135.88M
Investing Cash Flow	-35.98M	-22.42M	-12.48M	-13.44M	-25.54M
Financing Cash Flow	54.85M	1.01B	-1.30M	-36.01M	-16.43M

ProCredit Holding AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 9.08 is below the 20-day moving average (MA) of 9.45, below the 50-day MA of 9.62, and above the 200-day MA of 8.62, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.06 is Neutral, neither overbought nor oversold. The STOCH value of 7.13 is Positive, 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
PCZ	72 Outperform	€534.80M	5.57	9.17%	6.50%	6.69%	-18.28%
Sector *	61 Neutral	C$14.89B	6.40	22.28%	5.40%	30.07%	-22.51%
QB7	―	€156.29M	22.50		4.44%	―	―
UBK	―	€181.31M	―		―	―	―
BWB	―	€240.66M	10.29	13.31%	2.62%	―	―
VG80	―	€26.81M	―		―	―	―
MBK	―	€141.57M	11.84		2.75%	―	―