Company: Commerzbank
ISIN DE000CBK1001 | WKN CBK100
Business: A German bank. Their five pillars are: Private Customers (accounts, credits, wealth management etc.), Mittelstandbank (medium sized companies as well as institutions), Central & Easter Europe (mBank big in Poland), Corporate & Markets (Corporate finance, equity, currencies etc.) and finally Non-Core Assets (Real Estate and ship-building). They actually only claim to have four pillars but I prefer to add their "bad bank", the NCA, as the fifth.
Active: Claim presence in 50 countries. Europe with Germany and Poland the biggest.
P/E: 9.5
Here you can find the previous analysis of Coba 2015.
The P/E for Coba is excellent with 9.5 and the P/B is insane low with 0.3 which gives a very clear buy signal from Graham. The earnings to sales are ok with 9% but the ROE is not much to get excited about since it is only 3.6%. The book to debt ratio is down at 0.06 which is low but nothing unusual for banks.
In the last five years they have had an awful yearly revenue growth rate of -7.7% which then gives us a motivated P/E of around 8 which means that Coba is fairly valued on the market today.
They pay a dividend of 2.5% (after seven years of nothing) which correspond to less than 25% of their earnings so there is room to improve.
Conclusion: Graham as well as I am saying yes to Coba today. The P/E and especially the P/B is excellent and the dividend is ok for the time being. Since I am already heavily invested in Coba I need to consider if I should bring it one step further or not in the coming month.
If this analysis is outdated then you can request a new one.
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