Baader Bank AG (BWB) AI Stock Analysis

• Market Cap: €305.68M
• Dividend Yield: 2%
• Average Volume (3M): 13.34K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.40
• Revenue Growth: 15.69%
• EPS Growth: 268.17%
• Country: DE
• Employees: 631
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.72
• Shares Outstanding: 48,797,310
• 10 Day Avg. Volume: 6,044
• 30 Day Avg. Volume: 13,342
• PEG Ratio: 0.01
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 0.29
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: €7.00 ▲(7.69% Upside)

Baader Bank AG's stock is supported by strong financial performance with robust revenue growth and profitability. The technical indicators show positive momentum, and the valuation metrics suggest the stock is undervalued. These factors contribute to a favorable overall stock score.

Baader Bank AG Business Overview & Revenue Model

Company Description

Baader Bank Aktiengesellschaft, an investment bank, trades in financial instruments in Europe. The company trades in equities, bonds, funds and exchange traded funds, and securitized derivatives; and engages in the over-the-counter trading activities. It also provides electronic trading services, including automated order execution in shares, bonds, ETPs, and derivatives for clients on the national and international stock exchanges and trading platforms; and sales trading/execution services, such as the receipt and execution of client orders and orders of the bank's own clients, as well as flow and news management, portfolio trading, trading strategy advice, sponsoring, CSA and prime brokerage, and clearing services, as well as sells research products and trading ideas. In addition, the company offers capital market services, such as advice in financing and capital market transactions; structuring and execution of equity or debt transactions; reallocations of stocks; project financing; and technical trading services comprising support for capital measures, capital increases, and decreases, as well as for the purchase of shares, squeeze-out procedures, and withdrawal of invalid physical share certificates. Further, it provides banking services that include account and custody account management, fund-based savings plans, securities and derivatives trading in accounts, custody accounts, and execution of orders, as well as other banking-related services and trade/order entry applications. Additionally, the company engages in the portfolio management of fund products, including UCITS and special funds, offshore funds, and derivative overlay mandates; and equity research activities. The company was incorporated in 1983 and is headquartered in Unterschleissheim, Germany. Baader Bank Aktiengesellschaft is a subsidiary of Baader Beteiligungs GmbH.

How the Company Makes Money

Baader Bank AG generates revenue through multiple key streams including trading commissions from executing orders for clients, fees from advisory services provided in mergers and acquisitions, and income from asset management activities. The bank also earns money through market-making, where it profits from the spread between buying and selling prices of securities. Additionally, strategic partnerships with other financial institutions and participation in syndicates for bond issuances contribute to its revenue. The bank’s diversified service offerings and strong client relationships enable it to capitalize on various market opportunities, further enhancing its earnings.

Baader Bank AG Financial Statement Overview

Summary

Baader Bank AG demonstrates strong revenue growth and improving profitability, supported by a stable balance sheet with reduced leverage. However, the decline in free cash flow growth and low return on equity highlight areas for potential improvement.

Income Statement

Baader Bank AG has shown a strong revenue growth rate of 30.52% in the latest year, indicating robust top-line expansion. The net profit margin improved to 9.49%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while positive, suggest room for operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio has decreased over the years, indicating improved leverage management. However, the return on equity is low, suggesting that the company could better utilize its equity base to generate profits. The equity ratio is stable, indicating a solid capital structure.

Cash Flow

The operating cash flow is strong, but there is a notable decline in free cash flow growth, which could indicate potential challenges in cash generation. The free cash flow to net income ratio is healthy, suggesting efficient cash conversion from profits.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	247.60M	344.08M	249.96M	218.38M	279.22M
Gross Profit	227.37M	328.69M	144.61M	305.45M	200.44M
EBITDA	50.08M	4.65M	21.81M	64.12M	71.17M
Net Income	23.50M	2.79M	8.69M	46.55M	46.53M
Balance Sheet
Total Assets	4.82B	3.94B	2.38B	1.82B	888.58M
Cash, Cash Equivalents and Short-Term Investments	66.68M	30.75M	160.01M	1.37B	488.84M
Total Debt	59.81M	75.63M	117.64M	46.84M	82.64M
Total Liabilities	4.64B	3.77B	2.21B	1.66B	767.61M
Stockholders Equity	188.62M	164.76M	164.04M	163.52M	120.02M
Cash Flow
Free Cash Flow	693.87M	1.64B	-20.27M	885.75M	246.43M
Operating Cash Flow	708.21M	1.65B	366.37M	897.08M	250.65M
Investing Cash Flow	113.28M	-22.69M	-277.75M	-10.87M	2.12M
Financing Cash Flow	821.57M	-2.63M	-8.67M	-4.00M	-187.00K

Baader Bank AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BWB, the sentiment is Positive. The current price of 6.5 is above the 20-day moving average (MA) of 6.25, above the 50-day MA of 5.78, and above the 200-day MA of 4.71, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 93.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:BWB.

Baader Bank AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWB	77 Outperform	€305.68M	6.38	24.12%	2.00%	15.69%	268.17%
LUS1	69 Neutral	€195.37M	6.64	39.83%	8.45%	36.62%	23.21%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
XTP	56 Neutral	€221.13M	―	―	―	―	―
SB1	49 Neutral	€198.02M	―	-10.06%	―	21.89%	29.26%