GRENKE AG :GKSGF-US: Earnings Analysis: Q3, 2017 By the Numbers : December 20, 2017

GRENKE AG reports financial results for the quarter ended September 30, 2017.


  • Summary numbers: Revenues of USD 128.55 million, Net Earnings of USD 36.74 million.
  • Change in operating cash flow of -394.32% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth due to contribution of one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2017-09-30 2017-06-30 2017-03-31 2016-12-31 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 128.55 118.06 108.07 107.07 106.23
Revenue Growth (%YOY) 21.01 9.69 6.77 9.03 8.93
Earnings (mil) 36.74 32.42 30 28.97 28.89
Earnings Growth (%YOY) 27.18 7.94 23.16 27.75 24.53
Net Margin (%) 28.58 27.46 27.76 27.06 27.19
EPS 0.83 0.73 0.68 0.65 0.65
Return on Equity (%) 4.63 4.4 4.33 4.26 4.32
Return on Assets (%) 2.79 2.74 2.77 2.76 2.78

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Market Share Versus Profits

Revenues History
Earnings History

Compared to the same period last year, GKSGF-US’s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if GKSGF-US’s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by 8.89% and earnings by 13.33% compared to the previous period.

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

GKSGF-US’s year-on-year change in operating cash flow of -394.32% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.


The company’s operating (EBIT) margins contracted from 50.22% to 37.48%. In spite of this, the company’s earnings rose. This was influenced primarily by one-time items, which improved pretax margins from 37.14% to 37.48%.

EBIT Margin History
PreTax Margin History

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Company Profile

GRENKE AG engages in the provision of leasing services. It operates through the following segments: Leasing, Banking, and Factoring. The Leasing segment involves in the leasing information technology products. The Banking segment offers financing partner for small and mid size companies. The Factoring segment includes traditional factoring services. The company was founded in 1997 and is headquartered in Baden-Baden, Germany.

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