DHL GROUP (DPW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DPW - DE0005552004 - Common Stock
45.01 EUR
+0.28 (+0.63%)
We assign a fundamental rating of 5 out of 10 to DPW. DPW was compared to 16 industry peers in the Air Freight & Logistics industry. DPW has an average financial health and profitability rating. DPW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- DPW had positive earnings in the past year.
- DPW had a positive operating cash flow in the past year.
1.2 Ratios
- With an excellent Return On Assets value of 7.30%, DPW belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- With a decent Return On Equity value of 20.74%, DPW is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- DPW's Return On Invested Capital of 12.57% is amongst the best of the industry. DPW outperforms 84.62% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DPW is above the industry average of 9.76%.
- The last Return On Invested Capital (12.57%) for DPW is above the 3 year average (12.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 20.74% | ||
| ROIC | 12.57% |
ROA(3y)7.06%
ROA(5y)6.06%
ROE(3y)23.74%
ROE(5y)21.02%
ROIC(3y)12.21%
ROIC(5y)10.19%
1.3 Margins
- DPW has a Profit Margin of 5.30%. This is in the better half of the industry: DPW outperforms 76.92% of its industry peers.
- DPW's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 8.57%, DPW is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- DPW's Operating Margin has improved in the last couple of years.
- DPW has a worse Gross Margin (44.71%) than 61.54% of its industry peers.
- In the last couple of years the Gross Margin of DPW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.57% | ||
| PM (TTM) | 5.3% | ||
| GM | 44.71% |
OM growth 3Y15.09%
OM growth 5Y8.22%
PM growth 3Y11.07%
PM growth 5Y4.8%
GM growth 3Y-4.07%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DPW is creating value.
- The number of shares outstanding for DPW has been reduced compared to 1 year ago.
- DPW has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.99 indicates that DPW is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.99, DPW is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- DPW has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as DPW would need 3.06 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.06, DPW is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- A Debt/Equity ratio of 0.73 indicates that DPW is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.73, DPW is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 2.99 |
ROIC/WACC2.22
WACC5.66%
2.3 Liquidity
- DPW has a Current Ratio of 1.03. This is a normal value and indicates that DPW is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of DPW (1.03) is comparable to the rest of the industry.
- A Quick Ratio of 0.98 indicates that DPW may have some problems paying its short term obligations.
- The Quick ratio of DPW (0.98) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- DPW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.28%.
- Measured over the past years, DPW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.71% on average per year.
- DPW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.52%.
- DPW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.33% yearly.
EPS 1Y (TTM)-4.28%
EPS 3Y27.87%
EPS 5Y14.71%
EPS Q2Q%-30.91%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y14.24%
Revenue growth 5Y9.33%
Sales Q2Q%-7.41%
3.2 Future
- DPW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.18% yearly.
- The Revenue is expected to grow by 0.75% on average over the next years.
EPS Next Y-22.12%
EPS Next 2Y-7.1%
EPS Next 3Y-0.91%
EPS Next 5Y0.18%
Revenue Next Year-8.79%
Revenue Next 2Y-3.26%
Revenue Next 3Y-1.16%
Revenue Next 5Y0.75%
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 decreasing.
- 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
- DPW is valuated reasonably with a Price/Earnings ratio of 11.17.
- Based on the Price/Earnings ratio, DPW is valued a bit cheaper than 69.23% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. DPW is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.94 indicates a reasonable valuation of DPW.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DPW indicates a somewhat cheap valuation: DPW is cheaper than 69.23% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of DPW to the average of the S&P500 Index (25.83), we can say DPW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
- DPW's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as DPW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
- DPW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-7.1%
EPS Next 3Y-0.91%
5. Dividend
5.1 Amount
- DPW has a Yearly Dividend Yield of 4.21%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.93, DPW pays a bit more dividend than its industry peers.
- DPW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
- The dividend of DPW is nicely growing with an annual growth rate of 13.96%!
Dividend Growth(5Y)13.96%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- DPW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y-7.1%
EPS Next 3Y-0.91%
DHL GROUP / DPW.DE FAQ
What is the fundamental rating for DPW stock?
ChartMill assigns a fundamental rating of 5 / 10 to DPW.DE.
What is the valuation status for DPW stock?
ChartMill assigns a valuation rating of 5 / 10 to DHL GROUP (DPW.DE). This can be considered as Fairly Valued.
How profitable is DHL GROUP (DPW.DE) stock?
DHL GROUP (DPW.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for DPW stock?
The Price/Earnings (PE) ratio for DHL GROUP (DPW.DE) is 11.17 and the Price/Book (PB) ratio is 2.27.