DHL GROUP (DHL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DHL - DE0005552004 - Common Stock
46 EUR
-0.75 (-1.6%)
DHL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 16 industry peers in the Air Freight & Logistics industry. Both the profitability and the financial health of DHL get a neutral evaluation. Nothing too spectacular is happening here. DHL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year DHL was profitable.
- DHL had a positive operating cash flow in the past year.
- DHL had positive earnings in each of the past 5 years.
- In the past 5 years DHL always reported a positive cash flow from operatings.
1.2 Ratios
- DHL has a better Return On Assets (5.15%) than 62.50% of its industry peers.
- The Return On Equity of DHL (16.43%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 9.06%, DHL is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DHL is in line with the industry average of 9.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 16.43% | ||
| ROIC | 9.06% |
ROA(3y)6.03%
ROA(5y)6.29%
ROE(3y)17.81%
ROE(5y)20.32%
ROIC(3y)10.22%
ROIC(5y)10.65%
1.3 Margins
- Looking at the Profit Margin, with a value of 4.24%, DHL is in line with its industry, outperforming 56.25% of the companies in the same industry.
- DHL's Profit Margin has been stable in the last couple of years.
- The Operating Margin of DHL (7.27%) is better than 62.50% of its industry peers.
- In the last couple of years the Operating Margin of DHL has grown nicely.
- Looking at the Gross Margin, with a value of 50.49%, DHL is in line with its industry, outperforming 56.25% of the companies in the same industry.
- DHL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 4.24% | ||
| GM | 50.49% |
OM growth 3Y-10.95%
OM growth 5Y3.29%
PM growth 3Y-13.81%
PM growth 5Y-0.9%
GM growth 3Y2.61%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DHL is creating some value.
- DHL has less shares outstanding than it did 1 year ago.
- DHL has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DHL has a worse debt to assets ratio.
2.2 Solvency
- DHL has an Altman-Z score of 2.50. This is not the best score and indicates that DHL is in the grey zone with still only limited risk for bankruptcy at the moment.
- DHL's Altman-Z score of 2.50 is fine compared to the rest of the industry. DHL outperforms 62.50% of its industry peers.
- DHL has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as DHL would need 3.91 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.91, DHL is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- DHL has a Debt/Equity ratio of 0.94. This is a neutral value indicating DHL is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.94, DHL perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.48
WACC6.11%
2.3 Liquidity
- DHL has a Current Ratio of 0.92. This is a bad value and indicates that DHL is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.92, DHL is doing worse than 62.50% of the companies in the same industry.
- DHL has a Quick Ratio of 0.92. This is a bad value and indicates that DHL is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of DHL (0.87) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.79% over the past year.
- DHL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.10% yearly.
- DHL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
- The Revenue has been growing slightly by 5.85% on average over the past years.
EPS 1Y (TTM)15.79%
EPS 3Y-11.47%
EPS 5Y6.1%
EPS Q2Q%19.05%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y0.98%
Revenue growth 5Y5.85%
Sales Q2Q%-2.25%
3.2 Future
- Based on estimates for the next years, DHL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.48% on average per year.
- Based on estimates for the next years, DHL will show a small growth in Revenue. The Revenue will grow by 2.55% on average per year.
EPS Next Y9.57%
EPS Next 2Y9.47%
EPS Next 3Y9.84%
EPS Next 5Y8.48%
Revenue Next Year-0.97%
Revenue Next 2Y0.63%
Revenue Next 3Y1.69%
Revenue Next 5Y2.55%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.94 indicates a correct valuation of DHL.
- Based on the Price/Earnings ratio, DHL is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- DHL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 13.66, DHL is valued correctly.
- DHL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHL is cheaper than 68.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, DHL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 13.66 |
4.2 Price Multiples
- 62.50% of the companies in the same industry are more expensive than DHL, based on the Enterprise Value to EBITDA ratio.
- DHL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DHL is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of DHL may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)2.45
EPS Next 2Y9.47%
EPS Next 3Y9.84%
5. Dividend
5.1 Amount
- DHL has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.89, DHL pays a bit more dividend than its industry peers.
- DHL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
- The dividend of DHL is nicely growing with an annual growth rate of 10.08%!
Dividend Growth(5Y)10.08%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- DHL pays out 60.01% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of DHL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.01%
EPS Next 2Y9.47%
EPS Next 3Y9.84%
DHL GROUP / DHL.DE FAQ
Can you provide the ChartMill fundamental rating for DHL GROUP?
ChartMill assigns a fundamental rating of 5 / 10 to DHL.DE.
What is the valuation status for DHL stock?
ChartMill assigns a valuation rating of 5 / 10 to DHL GROUP (DHL.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for DHL GROUP?
DHL GROUP (DHL.DE) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for DHL stock?
The Price/Earnings (PE) ratio for DHL GROUP (DHL.DE) is 14.94 and the Price/Book (PB) ratio is 2.46.
How financially healthy is DHL GROUP?
The financial health rating of DHL GROUP (DHL.DE) is 4 / 10.