DHL GROUP (DPW.DE) Stock Fundamental Analysis
FRA:DPW - Deutsche Boerse Ag - DE0005552004 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to DPW. DPW was compared to 14 industry peers in the Air Freight & Logistics industry. DPW scores excellent on profitability, but there are some minor concerns on its financial health. DPW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DPW was profitable.
DPW had a positive operating cash flow in the past year.
Each year in the past 5 years DPW has been profitable.
Each year in the past 5 years DPW had a positive operating cash flow.
1.2 Ratios
DPW has a better Return On Assets (7.30%) than 84.62% of its industry peers.
Looking at the Return On Equity, with a value of 20.74%, DPW is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.57%, DPW belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
DPW had an Average Return On Invested Capital over the past 3 years of 12.21%. This is above the industry average of 7.45%.
The 3 year average ROIC (12.21%) for DPW is below the current ROIC(12.57%), indicating increased profibility in the last year.
| 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
The Profit Margin of DPW (5.30%) is better than 76.92% of its industry peers.
In the last couple of years the Profit Margin of DPW has grown nicely.
DPW has a Operating Margin of 8.57%. This is in the better half of the industry: DPW outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of DPW has grown nicely.
The Gross Margin of DPW (44.71%) is worse than 61.54% of its industry peers.
DPW's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DPW is creating value.
The number of shares outstanding for DPW has been reduced compared to 1 year ago.
The debt/assets ratio for DPW is higher compared to a year ago.
2.2 Solvency
DPW has an Altman-Z score of 2.99. This is not the best score and indicates that DPW is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.99, DPW is in the better half of 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.
DPW's Debt to FCF ratio of 3.06 is fine compared to the rest of the industry. DPW outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that DPW is somewhat dependend on debt financing.
DPW's Debt to Equity ratio of 0.73 is fine compared to the rest of the industry. DPW outperforms 61.54% of its industry peers.
| 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.
DPW's Current ratio of 1.03 is in line compared to the rest of the industry. DPW outperforms 53.85% of its industry peers.
DPW has a Quick Ratio of 1.03. This is a bad value and indicates that DPW is not financially healthy enough and could expect problems in meeting its short term obligations.
DPW has a worse Quick ratio (0.98) 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%.
DPW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.71% yearly.
DPW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.52%.
The Revenue has been growing by 9.33% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 0.18% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.17, the valuation of DPW can be described as reasonable.
Based on the Price/Earnings ratio, DPW is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
DPW is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.94, the valuation of DPW can be described as reasonable.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.80, 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DPW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
The excellent profitability rating of DPW 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
With a Yearly Dividend Yield of 4.21%, DPW is a good candidate for dividend investing.
DPW's Dividend Yield is a higher than the industry average which is at 3.50.
Compared to an average S&P500 Dividend Yield of 2.34, DPW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
On average, the dividend of DPW grows each year by 13.96%, which is quite nice.
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%
FRA:DPW (7/3/2023, 5:29:55 PM)
45.01
+0.28 (+0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap53.96B
Analysts79.26
Price Target51.37 (14.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend1.85
Dividend Growth(5Y)13.96%
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.53%
Min EPS beat(2)2.45%
Max EPS beat(2)6.6%
EPS beat(4)3
Avg EPS beat(4)4.98%
Min EPS beat(4)-5.49%
Max EPS beat(4)16.37%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-0.93%
Revenue beat(4)2
Avg Revenue beat(4)2.57%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)8.33%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)1.97%
EPS NQ rev (1m)8.3%
EPS NQ rev (3m)8.88%
EPS NY rev (1m)0.99%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)2.16%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 11.94 | ||
| P/S | 0.58 | ||
| P/FCF | 7.77 | ||
| P/OCF | 4.94 | ||
| P/B | 2.27 | ||
| P/tB | 5.57 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)4.03
EY8.95%
EPS(NY)3.77
Fwd EY8.38%
FCF(TTM)5.79
FCFY12.87%
OCF(TTM)9.12
OCFY20.25%
SpS77.38
BVpS19.79
TBVpS8.08
PEG (NY)N/A
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 20.74% | ||
| ROCE | N/A | ||
| ROIC | 12.57% | ||
| ROICexc | 14.29% | ||
| ROICexgc | 21.84% | ||
| OM | 8.57% | ||
| PM (TTM) | 5.3% | ||
| GM | 44.71% | ||
| FCFM | N/A |
ROA(3y)7.06%
ROA(5y)6.06%
ROE(3y)23.74%
ROE(5y)21.02%
ROIC(3y)12.21%
ROIC(5y)10.19%
ROICexc(3y)14.18%
ROICexc(5y)11.71%
ROICexgc(3y)21.71%
ROICexgc(5y)18.22%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y19.63%
ROICexcg growth 5Y-5.23%
ROICexc growth 3Y21.39%
ROICexc growth 5Y3.22%
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%
F-Score5
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 93.94% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 141.19% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.99 |
F-Score5
WACC5.66%
ROIC/WACC2.22
Cap/Depr(3y)89.7%
Cap/Depr(5y)89.52%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)138.57%
Profit Quality(5y)131.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.28%
EPS 3Y27.87%
EPS 5Y14.71%
EPS Q2Q%-30.91%
EPS Next Y-22.12%
EPS Next 2Y-7.1%
EPS Next 3Y-0.91%
EPS Next 5Y0.18%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y14.24%
Revenue growth 5Y9.33%
Sales Q2Q%-7.41%
Revenue Next Year-8.79%
Revenue Next 2Y-3.26%
Revenue Next 3Y-1.16%
Revenue Next 5Y0.75%
EBIT growth 1Y-2.98%
EBIT growth 3Y31.47%
EBIT growth 5Y18.33%
EBIT Next Year30.22%
EBIT Next 3Y14.18%
EBIT Next 5Y11.82%
FCF growth 1Y8.3%
FCF growth 3Y41.81%
FCF growth 5Y45.13%
OCF growth 1Y15.73%
OCF growth 3Y21.68%
OCF growth 5Y27.15%