Commerzbank Ag Net Income dropped on 74.3% in 2016
09 Feb 2017 • About Commerzbank Ag (
$CZB) • By InTwits
Commerzbank Ag reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Commerzbank Ag is a company in decline: 2016 revenue growth was -8.9%, 5 years revenue CAGR was -7.0%
- Commerzbank Ag has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 362 in 2016, 252 in 2015, 735 in 2014, 1,528 in 2013, 457 in 2012
- The company has potentially unprofitable business model: ROIC is at 0.3%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Commerzbank Ag ($CZB) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 20,226 | 17,582 | 16,149 | 16,080 | 14,645 | -8.9% |
| Net Income | -47 | 81 | 266 | 1,084 | 279 | -74.3% |
Balance Sheet
|
|---|
| Cash | 15,755 | 12,397 | 4,897 | 28,509 | 34,802 | 22.1% |
| Short Term Debt | 98,836 | 42,958 | 49,392 | 52,045 | 33,261 | -36.1% |
| Long Term Debt | 93,270 | 102,724 | 86,309 | 76,390 | 71,283 | -6.7% |
Cash flow
|
|---|
| Capex | 457 | 1,528 | 735 | 252 | 362 | 43.7% |
Ratios
|
|---|
| Revenue growth | -3.8% | -13.1% | -8.2% | -0.4% | -8.9% | |
| Net Income Margin | -0.2% | 0.5% | 1.6% | 6.7% | 1.9% | -4.8% |
| CAPEX, % of revenue | 2.3% | 8.7% | 4.6% | 1.6% | 2.5% | 0.9% |
| ROIC | 0.4% | 0.1% | 0.3% | 0.9% | 0.3% | -0.6% |
| ROE | -0.2% | 0.3% | 1.0% | 3.9% | 1.0% | -3.0% |
Revenue and profitability
The company's Revenue decreased on 8.9% in 2016.
Net Income marign decreased on 4.8 pp from 6.7% to 1.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.5% in 2016. CAPEX/Revenue decreased on 6.2 pp from 8.7% in 2013 to 2.5% in 2016. It's average level of CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at low ROIC (0.28%) and ROE (0.97%). ROIC decreased slightly on 0.58 pp from 0.86% to 0.28% in 2016. ROE decreased on 3.0 pp from 3.9% to 0.97% in 2016.
Leverage (Debt)
Debt dropped on 18.6% in 2016 while cash jumped on 22.1% in 2016.
Appendix 1: Peers in Banks
Below you can find Commerzbank Ag benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Mcb Bank Ltd ($MCBS) | | -1.7% | 19.4% | 22.4% | -10.7% |
| |
|---|
| Median (43 companies) | 13.9% | 4.8% | 12.1% | 5.5% | 5.0% |
|---|
| Commerzbank Ag ($CZB) | | -13.1% | -8.2% | -0.4% | -8.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.7% | 2.1% | 2.5% | 1.9% |
|---|
| Commerzbank Ag ($CZB) | 2.3% | 8.7% | 4.6% | 1.6% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.4% | 5.7% | 4.5% | 3.5% | 4.6% |
|---|
| Commerzbank Ag ($CZB) | 0.4% | 0.1% | 0.3% | 0.9% | 0.3% |
