DRAEGERWERK AG (DRW8.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DRW8 - DE0005550602 - Common Stock
68.3 EUR
-0.7 (-1.01%)
DRW8 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of DRW8 get a neutral evaluation. Nothing too spectacular is happening here. DRW8 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally DRW8 also has an excellent dividend rating. These ratings could make DRW8 a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- DRW8 had positive earnings in the past year.
- In the past year DRW8 had a positive cash flow from operations.
- DRW8 had positive earnings in 4 of the past 5 years.
- DRW8 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.99%, DRW8 is doing good in the industry, outperforming 60.32% of the companies in the same industry.
- DRW8's Return On Equity of 8.02% is fine compared to the rest of the industry. DRW8 outperforms 60.32% of its industry peers.
- DRW8 has a better Return On Invested Capital (7.67%) than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 8.02% | ||
| ROIC | 7.67% |
ROA(3y)1.84%
ROA(5y)3.09%
ROE(3y)3.69%
ROE(5y)7.99%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 3.54%, DRW8 is in line with its industry, outperforming 47.62% of the companies in the same industry.
- DRW8's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 6.02%, DRW8 is not doing good in the industry: 60.32% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of DRW8 has grown nicely.
- DRW8's Gross Margin of 45.35% is on the low side compared to the rest of the industry. DRW8 is outperformed by 69.84% of its industry peers.
- In the last couple of years the Gross Margin of DRW8 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.02% | ||
| PM (TTM) | 3.54% | ||
| GM | 45.35% |
OM growth 3Y-13.99%
OM growth 5Y11.88%
PM growth 3Y-2.93%
PM growth 5Y32.71%
GM growth 3Y-1.06%
GM growth 5Y0.96%
2. Health
2.1 Basic Checks
- DRW8 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- DRW8 has less shares outstanding than it did 1 year ago.
- DRW8 has more shares outstanding than it did 5 years ago.
- DRW8 has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.73 indicates that DRW8 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DRW8 has a Altman-Z score (2.73) which is in line with its industry peers.
- The Debt to FCF ratio of DRW8 is 2.16, which is a good value as it means it would take DRW8, 2.16 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.16, DRW8 is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- DRW8 has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- DRW8 has a Debt to Equity ratio of 0.10. This is in the better half of the industry: DRW8 outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.12
WACC6.85%
2.3 Liquidity
- DRW8 has a Current Ratio of 1.76. This is a normal value and indicates that DRW8 is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of DRW8 (1.76) is better than 60.32% of its industry peers.
- DRW8 has a Quick Ratio of 1.03. This is a normal value and indicates that DRW8 is financially healthy and should not expect problems in meeting its short term obligations.
- DRW8 has a Quick ratio (1.03) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- DRW8 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.68%.
- DRW8 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.42% yearly.
- The Revenue has been growing slightly by 2.14% in the past year.
- The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)6.68%
EPS 3Y-2.51%
EPS 5Y36.42%
EPS Q2Q%143.82%
Revenue 1Y (TTM)2.14%
Revenue growth 3Y0.42%
Revenue growth 5Y3.92%
Sales Q2Q%7.58%
3.2 Future
- Based on estimates for the next years, DRW8 will show a small growth in Earnings Per Share. The EPS will grow by 7.93% on average per year.
- The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y6.71%
EPS Next 2Y10.8%
EPS Next 3Y11.15%
EPS Next 5Y7.93%
Revenue Next Year2.84%
Revenue Next 2Y3.51%
Revenue Next 3Y3.67%
Revenue Next 5Y2.85%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 10.59, which indicates a very decent valuation of DRW8.
- DRW8's Price/Earnings ratio is rather cheap when compared to the industry. DRW8 is cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DRW8 to the average of the S&P500 Index (27.21), we can say DRW8 is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.36 indicates a reasonable valuation of DRW8.
- DRW8's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRW8 is cheaper than 93.65% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DRW8 to the average of the S&P500 Index (25.98), we can say DRW8 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRW8 indicates a rather cheap valuation: DRW8 is cheaper than 96.83% of the companies listed in the same industry.
- DRW8's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DRW8 is cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 3.76 |
4.3 Compensation for Growth
- DRW8's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.58
PEG (5Y)0.29
EPS Next 2Y10.8%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
- DRW8 has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
- DRW8's Dividend Yield is rather good when compared to the industry average which is at 0.96. DRW8 pays more dividend than 93.65% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, DRW8 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
- The dividend of DRW8 is nicely growing with an annual growth rate of 51.02%!
Dividend Growth(5Y)51.02%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
- 31.13% of the earnings are spent on dividend by DRW8. This is a low number and sustainable payout ratio.
- DRW8's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.13%
EPS Next 2Y10.8%
EPS Next 3Y11.15%
DRAEGERWERK AG / DRW8.DE FAQ
Can you provide the ChartMill fundamental rating for DRAEGERWERK AG?
ChartMill assigns a fundamental rating of 5 / 10 to DRW8.DE.
What is the valuation status of DRAEGERWERK AG (DRW8.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to DRAEGERWERK AG (DRW8.DE). This can be considered as Undervalued.
What is the profitability of DRW8 stock?
DRAEGERWERK AG (DRW8.DE) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for DRW8 stock?
The Price/Earnings (PE) ratio for DRAEGERWERK AG (DRW8.DE) is 10.59 and the Price/Book (PB) ratio is 0.85.
What is the expected EPS growth for DRAEGERWERK AG (DRW8.DE) stock?
The Earnings per Share (EPS) of DRAEGERWERK AG (DRW8.DE) is expected to grow by 6.71% in the next year.