Fundamental analysis Lang & Schwarz
1. key financial figures
- Market capitalisation: approx. EUR 213-218 million
- P/E RATIO (2025): around 8.2 - significant undervaluation compared to the sector
- Dividend yield: between 2.9 % and 9.1 % depending on the calculation and distribution year
- Equity ratio: solid, with an additional EUR 17.3 million being allocated to the fund for general banking risks
2. profit and distribution policy
- For 2025, Lang & Schwarz is planning a dividend of EUR 1.75 per share, which corresponds to around 75 % of the net profit for the year
- This high payout ratio signals confidence in the company's earning power, but reduces flexibility in the event of unexpected burdens.
3. risk factors
- Trading activities: The volume of business is growing strongly, resulting in higher margin requirements
- Dependence on the capital market environment: As a securities trading bank, Lang & Schwarz is heavily dependent on the economy and sentiment.
- Dividend policy: An aggressive distribution policy can weaken the capital base in the event of market stress.
4. opportunities
- Stable profits: The profit trend has shown a clear upward trend since 2019
- Attractive valuation: A low P/E ratio and high dividend yield make the share interesting for investors.
- Risk buffer: The allocation to the fund for general banking risks strengthens equity and reduces systemic risks
Assessment of issuer risk
- In the short term: No acute issuer risk recognisable. Solid capitalisation and risk provisioning indicate stability.
- In the medium term: Risks exist primarily due to the high payout ratio and the strong dependence on trading volumes. Should the market environment collapse abruptly, the capital base could come under pressure.
- In the long term: The strategy of simultaneously distributing high dividends and strengthening equity is fundamentally positive. However, sustainable earning power in the volatile financial services sector remains crucial.
Comparison table - opportunities vs. risks
| Factor | Opportunities | Risks |
|---|---|---|
| Valuation (P/E ratio) | Attractively low (approx. 8.2) | Low growth potential with stagnating markets |
| Dividend policy | High return, shareholder-friendly | Payout ratio of 75 % reduced Flexibility |
| Own funds | Fund for banking risks strengthened | Dependence on trading volumes remains high |
| Market environment | Profit with high volatility | Depending on the economy and sentiment |
5. conclusion
Lang & Schwarz currently presents itself as Solid issuer with attractive valuation and high distribution policy. There is no recognisable direct issuer risk. Nevertheless, investors should Dependence on trading volume and the high payout ratio as these factors could jeopardise stability in the event of a market downturn.