Grenke

Valuation Analysis

About the Company

Grenke AG, together with its subsidiaries, provides financial services to small and medium-sized (SME) enterprises in Germany, France, Italy, and internationally. It is involved in the financing for commercial lessees; leasing, services, protection, and maintenance offers, as well as small-ticket leasing of IT products, such as PCs, notebooks, servers, monitors, and other peripheral devices. The company also offers leasing portfolio that includes office communication products comprising telecommunications and copying equipment, as well as medical technology products, small machines and equipment, security devices, and green economy objects, including wall boxes, photovoltaic systems, and eBikes. In addition, it provides fixed-term deposits for private and commercial customers through its w

Grenke Stock at a Glance

Grenke (GLJ.DE) is currently trading at €12.04 with a market capitalization of $531.9M. The trailing P/E ratio stands at 9.26x, with a forward P/E of 6.58x. The 52-week range spans from €11.48 to €19.82; the current price is 39.3% below the yearly high. Year-over-year revenue growth stands at +10.2%. The net profit margin stands at 10.72%.

💰 Dividend

Grenke pays an annual dividend of €0.42 per share, representing a yield of 3.49%. The payout ratio stands at 30.77%.

📊 Analyst Rating

5 analysts rate Grenke (GLJ.DE) on consensus: Buy. The average price target is €19.20, implying +59.47% from the current price. Analyst price targets range from €11.00 to €28.00.

Grenke: The Investment Case in Detail

Grenke (GLJ.DE) operates in the Financial Services — specifically Credit Services — and is headquartered in Germany. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10.2% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 82.52%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Wall Street consensus sits at Buy with an average price target implying roughly 59.47% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

The debt-to-equity ratio of 361.33% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

With a PEG ratio of 0.77, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 6.58x is meaningfully below the trailing 9.26x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The dividend yield near 3.49% combined with a payout ratio of 30.77% leaves room for further hikes — a track record of consecutive raises is a strong income signal.
• The analyst consensus price target implies 59.47% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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