GRENKE AG (GLJ.DE) Stock Fundamental Analysis
FRA:GLJ - Deutsche Boerse Ag - DE000A161N30 - Common Stock - Currency: EUR
Overall GLJ gets a fundamental rating of 3 out of 10. We evaluated GLJ against 47 industry peers in the Financial Services industry. Both the profitability and financial health of GLJ have multiple concerns. GLJ has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GLJ was profitable.
GLJ had a positive operating cash flow in the past year.
Each year in the past 5 years GLJ has been profitable.
The reported operating cash flow has been mixed in the past 5 years: GLJ reported negative operating cash flow in multiple years.
1.2 Ratios
GLJ has a worse Return On Assets (0.91%) than 63.83% of its industry peers.
The Return On Equity of GLJ (5.60%) is comparable to the rest of the industry.
GLJ has a Return On Invested Capital (1.72%) which is comparable to the rest of the industry.
GLJ had an Average Return On Invested Capital over the past 3 years of 2.09%. This is significantly below the industry average of 11.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 5.6% | ||
| ROIC | 1.72% |
ROA(3y)1.26%
ROA(5y)1.37%
ROE(3y)6.33%
ROE(5y)7.52%
ROIC(3y)2.09%
ROIC(5y)2.21%
1.3 Margins
The Profit Margin of GLJ (9.92%) is comparable to the rest of the industry.
GLJ's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.44%, GLJ is doing good in the industry, outperforming 63.83% of the companies in the same industry.
GLJ's Operating Margin has declined in the last couple of years.
GLJ has a better Gross Margin (74.37%) than 72.34% of its industry peers.
GLJ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.44% | ||
| PM (TTM) | 9.92% | ||
| GM | 74.37% |
OM growth 3Y-4.8%
OM growth 5Y-13.88%
PM growth 3Y-2.04%
PM growth 5Y-10.87%
GM growth 3Y-3.78%
GM growth 5Y-2.64%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GLJ is destroying value.
The number of shares outstanding for GLJ remains at a similar level compared to 1 year ago.
The number of shares outstanding for GLJ has been increased compared to 5 years ago.
Compared to 1 year ago, GLJ has a worse debt to assets ratio.
2.2 Solvency
GLJ has an Altman-Z score of 0.43. This is a bad value and indicates that GLJ is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GLJ (0.43) is worse than 72.34% of its industry peers.
GLJ has a debt to FCF ratio of 17.00. This is a negative value and a sign of low solvency as GLJ would need 17.00 years to pay back of all of its debts.
The Debt to FCF ratio of GLJ (17.00) is worse than 63.83% of its industry peers.
A Debt/Equity ratio of 2.59 is on the high side and indicates that GLJ has dependencies on debt financing.
GLJ's Debt to Equity ratio of 2.59 is on the low side compared to the rest of the industry. GLJ is outperformed by 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 17 | ||
| Altman-Z | 0.43 |
ROIC/WACC0.82
WACC2.1%
2.3 Liquidity
GLJ has a Current Ratio of 1.19. This is a normal value and indicates that GLJ is financially healthy and should not expect problems in meeting its short term obligations.
GLJ has a Current ratio (1.19) which is comparable to the rest of the industry.
GLJ has a Quick Ratio of 1.19. This is a normal value and indicates that GLJ is financially healthy and should not expect problems in meeting its short term obligations.
GLJ has a Quick ratio (1.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
GLJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.07%.
The Earnings Per Share has been growing by 14.49% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.86% in the past year.
Measured over the past years, GLJ shows a quite strong growth in Revenue. The Revenue has been growing by 12.36% on average per year.
EPS 1Y (TTM)-0.07%
EPS 3Y8.44%
EPS 5Y14.49%
EPS Q2Q%N/A
Revenue 1Y (TTM)7.86%
Revenue growth 3Y12.89%
Revenue growth 5Y12.36%
Sales Q2Q%39.82%
3.2 Future
Based on estimates for the next years, GLJ will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.37% on average per year.
The Revenue is expected to grow by 2.08% on average over the next years.
EPS Next Y-55.59%
EPS Next 2Y-17.88%
EPS Next 3Y-17.33%
EPS Next 5Y-11.37%
Revenue Next Year5.26%
Revenue Next 2Y0.95%
Revenue Next 3Y0.28%
Revenue Next 5Y2.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.83, the valuation of GLJ can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of GLJ indicates a rather cheap valuation: GLJ is cheaper than 80.85% of the companies listed in the same industry.
GLJ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.89.
With a Price/Forward Earnings ratio of 7.16, the valuation of GLJ can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GLJ indicates a rather cheap valuation: GLJ is cheaper than 85.11% of the companies listed in the same industry.
GLJ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.83 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
GLJ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GLJ is more expensive than 63.83% of the companies in the same industry.
GLJ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GLJ is cheaper than 93.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.71 | ||
| EV/EBITDA | 40.93 |
4.3 Compensation for Growth
A cheap valuation may be justified as GLJ's earnings are expected to decrease with -17.33% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-17.88%
EPS Next 3Y-17.33%
5. Dividend
5.1 Amount
GLJ has a Yearly Dividend Yield of 2.88%.
Compared to an average industry Dividend Yield of 3.76, GLJ pays a bit more dividend than its industry peers.
GLJ's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of GLJ decreases each year by -8.04%.
Dividend Growth(5Y)-8.04%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
29.06% of the earnings are spent on dividend by GLJ. This is a low number and sustainable payout ratio.
The Dividend Rate of GLJ has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP29.06%
EPS Next 2Y-17.88%
EPS Next 3Y-17.33%
FRA:GLJ (3/27/2025, 10:51:19 AM)
14.11
-0.19 (-1.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners25.59%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap656.12M
Analysts74
Price Target24.7 (75.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend0.45
Dividend Growth(5Y)-8.04%
DP29.06%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.02%
PT rev (3m)-2.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-20.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.83 | ||
| Fwd PE | 7.16 | ||
| P/S | 0.87 | ||
| P/FCF | 1.71 | ||
| P/OCF | 1.68 | ||
| P/B | 0.49 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 40.93 |
EPS(TTM)2.92
EY20.69%
EPS(NY)1.97
Fwd EY13.96%
FCF(TTM)8.25
FCFY58.46%
OCF(TTM)8.42
OCFY59.7%
SpS16.14
BVpS28.59
TBVpS27.73
PEG (NY)N/A
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 5.6% | ||
| ROCE | 2.24% | ||
| ROIC | 1.72% | ||
| ROICexc | 2.4% | ||
| ROICexgc | 2.43% | ||
| OM | 14.44% | ||
| PM (TTM) | 9.92% | ||
| GM | 74.37% | ||
| FCFM | 51.11% |
ROA(3y)1.26%
ROA(5y)1.37%
ROE(3y)6.33%
ROE(5y)7.52%
ROIC(3y)2.09%
ROIC(5y)2.21%
ROICexc(3y)2.45%
ROICexc(5y)2.77%
ROICexgc(3y)2.49%
ROICexgc(5y)2.81%
ROCE(3y)2.7%
ROCE(5y)2.86%
ROICexcg growth 3Y-12.12%
ROICexcg growth 5Y-15.28%
ROICexc growth 3Y-11.84%
ROICexc growth 5Y-14.73%
OM growth 3Y-4.8%
OM growth 5Y-13.88%
PM growth 3Y-2.04%
PM growth 5Y-10.87%
GM growth 3Y-3.78%
GM growth 5Y-2.64%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 17 | ||
| Debt/EBITDA | 24.81 | ||
| Cap/Depr | 27.01% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 2.43 | ||
| Cash Conversion | 282.5% | ||
| Profit Quality | 515.37% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 0.43 |
F-Score5
WACC2.1%
ROIC/WACC0.82
Cap/Depr(3y)24.64%
Cap/Depr(5y)41.49%
Cap/Sales(3y)1.24%
Cap/Sales(5y)2.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.07%
EPS 3Y8.44%
EPS 5Y14.49%
EPS Q2Q%N/A
EPS Next Y-55.59%
EPS Next 2Y-17.88%
EPS Next 3Y-17.33%
EPS Next 5Y-11.37%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y12.89%
Revenue growth 5Y12.36%
Sales Q2Q%39.82%
Revenue Next Year5.26%
Revenue Next 2Y0.95%
Revenue Next 3Y0.28%
Revenue Next 5Y2.08%
EBIT growth 1Y-0.63%
EBIT growth 3Y-3.93%
EBIT growth 5Y-11.18%
EBIT Next Year22.9%
EBIT Next 3Y23.97%
EBIT Next 5YN/A
FCF growth 1Y171.37%
FCF growth 3Y-16.32%
FCF growth 5Y131.53%
OCF growth 1Y173.82%
OCF growth 3Y-16.58%
OCF growth 5Y74.4%