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Stock Analysis & ValuationCR Energy AG (CRZK.DE)

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Previous Close
0.35
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)29.708290
Intrinsic value (DCF)9.022448
Graham-Dodd Method25.827194
Graham Formulan/a

Strategic Investment Analysis

Company Overview

CR Capital AG (CRZK.DE) is a German investment company specializing in real estate acquisition, development, and management. Headquartered in Kleinmachnow, Germany, the company focuses on holding and selling diversified real estate properties. Formerly known as CR Capital Real Estate AG, the firm was established in 2008 and operates in the Real Estate - Diversified sector. With a market capitalization of approximately €105.9 million, CR Capital AG demonstrates a strategic approach to real estate investments, leveraging Germany's stable property market. The company reported €68.6 million in revenue and €65.8 million in net income for FY 2023, reflecting strong profitability. CR Capital AG maintains a debt-free balance sheet, supported by €19.5 million in cash reserves, positioning it for opportunistic acquisitions. Investors seeking exposure to German real estate with a focus on capital appreciation may find CR Capital AG an intriguing option.

Investment Summary

CR Capital AG presents a compelling investment case due to its strong profitability, debt-free balance sheet, and strategic focus on German real estate. The company's FY 2023 financials highlight robust net income of €65.8 million and diluted EPS of €11.67, indicating efficient capital deployment. With no debt and €19.5 million in cash, CR Capital AG is well-positioned for opportunistic acquisitions. However, the lack of dividend payouts may deter income-focused investors. The company's beta of 1.112 suggests moderate volatility relative to the broader market, making it suitable for investors with a higher risk tolerance. Given its niche focus and strong financials, CR Capital AG could appeal to growth-oriented investors seeking exposure to Germany's real estate sector.

Competitive Analysis

CR Capital AG operates in the competitive German real estate investment sector, where it differentiates itself through a focused, debt-free strategy. The company's competitive advantage lies in its ability to acquire and manage properties without leverage, reducing financial risk. This approach contrasts with many peers that rely on debt financing to expand portfolios. CR Capital AG's strong net income and EPS performance in FY 2023 underscore its operational efficiency. However, its relatively small market cap (€105.9 million) limits its scale compared to larger diversified real estate firms. The company's lack of dividend payouts may also be a disadvantage when competing for income-seeking investors. CR Capital AG's success hinges on its ability to identify undervalued properties and execute profitable sales, a strategy that requires deep market expertise. While its debt-free model provides stability, it may also constrain growth compared to leveraged competitors during market upswings.

Major Competitors

  • DIC Asset AG (DIC.DE): DIC Asset AG is a larger German real estate investment company with a diversified portfolio. It offers dividends, appealing to income investors, but carries higher debt levels than CR Capital AG. DIC's scale provides better liquidity but may lack the agility of smaller firms like CR Capital.
  • GERRY WEBER International AG (GXI.DE): GERRY WEBER focuses on retail properties, differing from CR Capital's diversified approach. The company has faced financial challenges, making CR Capital's stable balance sheet more attractive. However, GERRY WEBER's specialized retail focus may offer higher upside in niche segments.
  • Industrie und Maschinen AG (ILM1.DE): Industrie und Maschinen AG combines real estate with industrial holdings, providing diversification beyond CR Capital's pure-play real estate model. This hybrid approach may appeal to investors seeking broader exposure but could dilute real estate-focused returns.
  • Deutsche EuroShop AG (DEQ.DE): Deutsche EuroShop specializes in shopping centers, contrasting with CR Capital's diversified strategy. While Deutsche EuroShop offers higher yield potential in retail, it faces greater sector-specific risks than CR Capital's more balanced portfolio.
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