DEUTZ AG (DEZ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DEZ - DE0006305006 - Common Stock
11.07 EUR
-0.06 (-0.54%)
Taking everything into account, DEZ scores 4 out of 10 in our fundamental rating. DEZ was compared to 111 industry peers in the Machinery industry. While DEZ is still in line with the averages on profitability rating, there are concerns on its financial health. DEZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- DEZ had positive earnings in the past year.
- In the past year DEZ had a positive cash flow from operations.
- Of the past 5 years DEZ 4 years were profitable.
- DEZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.96%, DEZ is in line with its industry, outperforming 43.48% of the companies in the same industry.
- DEZ has a worse Return On Equity (4.02%) than 60.87% of its industry peers.
- With a Return On Invested Capital value of 2.66%, DEZ is not doing good in the industry: 72.17% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for DEZ is in line with the industry average of 9.21%.
- The last Return On Invested Capital (2.66%) for DEZ is well below the 3 year average (7.48%), which needs to be investigated, but indicates that DEZ had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 4.02% | ||
| ROIC | 2.66% |
ROA(3y)4.55%
ROA(5y)1.5%
ROE(3y)9.71%
ROE(5y)3.1%
ROIC(3y)7.48%
ROIC(5y)N/A
1.3 Margins
- DEZ's Profit Margin of 1.89% is on the low side compared to the rest of the industry. DEZ is outperformed by 63.48% of its industry peers.
- In the last couple of years the Profit Margin of DEZ has remained more or less at the same level.
- DEZ has a Operating Margin of 2.24%. This is in the lower half of the industry: DEZ underperforms 73.04% of its industry peers.
- DEZ's Operating Margin has declined in the last couple of years.
- DEZ has a worse Gross Margin (22.05%) than 85.22% of its industry peers.
- DEZ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.24% | ||
| PM (TTM) | 1.89% | ||
| GM | 22.05% |
OM growth 3Y10.5%
OM growth 5Y-10.3%
PM growth 3Y6.54%
PM growth 5Y0.1%
GM growth 3Y7.76%
GM growth 5Y4.25%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DEZ is creating some value.
- Compared to 1 year ago, DEZ has more shares outstanding
- The number of shares outstanding for DEZ has been increased compared to 5 years ago.
- DEZ has a worse debt/assets ratio than last year.
2.2 Solvency
- DEZ has an Altman-Z score of 2.53. This is not the best score and indicates that DEZ is in the grey zone with still only limited risk for bankruptcy at the moment.
- DEZ has a Altman-Z score of 2.53. This is comparable to the rest of the industry: DEZ outperforms 57.39% of its industry peers.
- DEZ has a debt to FCF ratio of 4.50. This is a neutral value as DEZ would need 4.50 years to pay back of all of its debts.
- DEZ has a Debt to FCF ratio of 4.50. This is comparable to the rest of the industry: DEZ outperforms 60.00% of its industry peers.
- DEZ has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- DEZ has a Debt to Equity ratio of 0.12. This is amongst the best in the industry. DEZ outperforms 81.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.36
WACC7.33%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that DEZ should not have too much problems paying its short term obligations.
- The Current ratio of DEZ (1.16) is worse than 73.91% of its industry peers.
- DEZ has a Quick Ratio of 1.16. This is a bad value and indicates that DEZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- DEZ has a Quick ratio of 0.49. This is amonst the worse of the industry: DEZ underperforms 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- DEZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.56%.
- The Earnings Per Share has been decreasing by -2.06% on average over the past years.
- Looking at the last year, DEZ shows a quite strong growth in Revenue. The Revenue has grown by 9.79% in the last year.
- The Revenue has been decreasing by -0.30% on average over the past years.
EPS 1Y (TTM)-21.56%
EPS 3Y7.25%
EPS 5Y-2.06%
EPS Q2Q%587.92%
Revenue 1Y (TTM)9.79%
Revenue growth 3Y3.89%
Revenue growth 5Y-0.3%
Sales Q2Q%14.61%
3.2 Future
- The Earnings Per Share is expected to grow by 42.08% on average over the next years. This is a very strong growth
- Based on estimates for the next years, DEZ will show a quite strong growth in Revenue. The Revenue will grow by 10.56% on average per year.
EPS Next Y38.13%
EPS Next 2Y53.65%
EPS Next 3Y42.08%
EPS Next 5YN/A
Revenue Next Year17.53%
Revenue Next 2Y15.74%
Revenue Next 3Y13.54%
Revenue Next 5Y10.56%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 38.17, the valuation of DEZ can be described as expensive.
- Based on the Price/Earnings ratio, DEZ is valued a bit more expensive than 60.87% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. DEZ is valued slightly more expensive when compared to this.
- DEZ is valuated reasonably with a Price/Forward Earnings ratio of 11.66.
- DEZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DEZ is cheaper than 79.13% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. DEZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.17 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
- DEZ's Enterprise Value to EBITDA is on the same level as the industry average.
- DEZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.65 | ||
| EV/EBITDA | 12.95 |
4.3 Compensation for Growth
- DEZ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- DEZ's earnings are expected to grow with 42.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y53.65%
EPS Next 3Y42.08%
5. Dividend
5.1 Amount
- DEZ has a Yearly Dividend Yield of 1.53%.
- DEZ's Dividend Yield is comparable with the industry average which is at 1.48.
- Compared to an average S&P500 Dividend Yield of 1.81, DEZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
- The dividend of DEZ has a limited annual growth rate of 1.53%.
Dividend Growth(5Y)1.53%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- DEZ pays out 62.27% of its income as dividend. This is not a sustainable payout ratio.
- DEZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.27%
EPS Next 2Y53.65%
EPS Next 3Y42.08%
DEUTZ AG / DEZ.DE FAQ
What is the ChartMill fundamental rating of DEUTZ AG (DEZ.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to DEZ.DE.
What is the valuation status of DEUTZ AG (DEZ.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to DEUTZ AG (DEZ.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for DEUTZ AG?
DEUTZ AG (DEZ.DE) has a profitability rating of 4 / 10.
What is the financial health of DEUTZ AG (DEZ.DE) stock?
The financial health rating of DEUTZ AG (DEZ.DE) is 3 / 10.
Can you provide the dividend sustainability for DEZ stock?
The dividend rating of DEUTZ AG (DEZ.DE) is 4 / 10 and the dividend payout ratio is 62.27%.